1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3094 By: Tedford
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7 AS INTRODUCED
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8 An Act relating to insurance; creating the Public
8 Adjuster Regulation Act; providing definitions;
9 limiting certain compensation; prohibiting public
9 adjusters from participation in lawsuits and certain
10 rewards; requiring certain contract to act as a
10 public insurance adjuster; providing required
11 contents of contracts with insured; prohibiting
11 contract from containing certain limiting and
12 nullifying terms or conditions; requiring contracts
12 conform to certain requirements; requiring submission
13 of original or renewal of adjusters license
13 application with contracts; clarifying that failure
14 to comply with certain contract procedures may result
14 in certain penalties; requiring public adjuster to
15 provide certain requested contracts to the insurer;
15 prohibiting construction contractors from certain
16 actions without a license; prohibiting entities from
16 acting as both the public adjuster to and
17 construction contractor; prohibiting construction
17 contractors from hiring public adjusters; prohibiting
18 public adjuster from having certain financial
18 interest; permitting owner's representatives to work
19 a claim in certain circumstances; providing a certain
19 financial penalty; directing monies be deposited into
20 state general revenue fund; amending 36 O.S. 2021,
20 Section 6212, which relates to notification of change
21 in information of licensees; modifying citation;
21 amending 36 O.S. 2021, Section 6220, as amended by
22 Section 5, Chapter 196, O.S.L. 2023 (36 O.S. Supp.
22 2023, Section 6220), which relates to the suspension,
23 revocation, or refusal to renew license; prohibiting
23 public adjusters from engaging in certain claims
24 related to certain property covered by interlocal
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 1 entity insurance contract; providing for
1 codification; and providing an effective date.
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4 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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5 SECTION 1. NEW LAW A new section of law to be codified
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6 in the Oklahoma Statutes as Section 6224 of Title 36, unless there
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7 is created a duplication in numbering, reads as follows:
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8 This act shall be known and may be cited as the "Public Adjuster
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9 Regulation Act".
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10 SECTION 2. NEW LAW A new section of law to be codified
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11 in the Oklahoma Statutes as Section 6225 of Title 36, unless there
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12 is created a duplication in numbering, reads as follows:
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13 As used in this act:
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14 1. "Construction contractor" means an entity that is either a
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15 trade contractor or general contractor that actually performs
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16 construction trades or collects funds for the performing of
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17 construction work. This does not include a consultant or owner's
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18 representative;
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19 2. "Construction manager" means a person or entity managing a
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20 construction project for a fee while not engaging in actual
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21 construction;
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22 3. "Consultant" means a person or entity giving advice for a
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23 fee;
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 1 4. "Owner's representative" means a person or entity
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2 representing a property owner to other parties; and
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3 5. "Public adjuster" means a licensed person or entity that
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4 negotiates an insurance claim on behalf of the claimant.
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5 SECTION 3. NEW LAW A new section of law to be codified
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6 in the Oklahoma Statutes as Section 6226 of Title 36, unless there
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7 is created a duplication in numbering, reads as follows:
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8 A. Under any method of compensation, the total commission
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9 payable to the public insurance adjuster, including expenses, direct
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10 costs, or any other costs accrued by the public insurance adjuster,
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11 shall not exceed ten percent (10%) of the amount of the insurance
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12 settlement.
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13 B. Public adjusters shall not participate in any lawsuits nor
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14 receive judgment rewards.
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15 SECTION 4. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 6227 of Title 36, unless there
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17 is created a duplication in numbering, reads as follows:
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18 A. A public insurance adjuster may not, directly or indirectly,
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19 act within this state as a public insurance adjuster without having
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20 first entered into a written contract executed in duplicate by the
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21 licensee and the insured or the insured's duly authorized
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22 representative.
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23 B. A public insurance adjuster's written contract with an
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24 insured must contain:
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 1 1. The name, address, and license number of the public
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2 insurance adjuster negotiating the contract, and if applicable, the
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3 name, address, and license number of the public insurance adjuster's
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4 employing public insurance adjuster, with each page of the contract
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5 prominently displaying the license number(s);
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6 2. The public insurance adjuster's telephone and fax number,
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7 including area code;
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8 3. The mailing and physical addresses to which notice of
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9 cancellation and all communications to the public insurance adjuster
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10 may be delivered;
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11 4. If any part of the contract or solicitation is made via the
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12 Internet, the email and website address to which notice of contract
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13 cancellation and all communications to the public insurance adjuster
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14 may be delivered;
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15 5. The date and time the contract was signed;
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16 6. For each nonresident public insurance adjuster named in the
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17 contract, the name and address of the nonresident public insurance
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18 adjuster's agent for service of process;
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19 7. The following separate statements in twelve-point bold type
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20 font on the signature page of the contract:
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21 a. "NOTICE: The insured may cancel this contract by
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22 written notice to the public insurance adjuster within
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23 seventy-two (72) hours of signature for any reason.",
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24 b. "We represent the insured only.", and
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 1 c. "You are entering into a service contract. You are
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2 being charged a fee for this service. You do not have
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3 to enter into this contract to make a claim for loss
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4 or damage on a policy of insurance.";
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5 8. The statement: "If the insurance carrier pays or commits in
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6 writing to pay to the insured the policy limits of the insurance
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7 policy within seventy-two (72) hours of the loss being reported to
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8 the insurer, the public insurance adjuster is not entitled to
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9 compensation based on a percentage of the insurance settlement, but
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10 is entitled to reasonable compensation for the public insurance
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11 adjuster's time and expenses provided to the insured before the
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12 claim was paid or the written commitment to pay was received.";
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13 9. The statement: "NOTICE: A public insurance adjuster may not
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14 participate directly or indirectly in the reconstruction, repair, or
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15 restoration of damaged property that is the subject of a claim
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16 adjusted by the public insurance adjuster or engage in any other
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17 activities that may reasonably be construed as presenting a conflict
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18 of interest, including soliciting or accepting any remuneration
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19 from, or having a financial interest in, any salvage firm, repair
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20 firm, or other firm that obtains business in connection with any
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21 claim the public insurance adjuster has a contract or agreement to
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22 adjust.";
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23 10. On the first or second page of the contract, the following
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24 English notice in ten-point bold type font:
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 1 "IMPORTANT NOTICE: You may contact the Oklahoma Insurance
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2 Department to get information about public insurance adjusters, your
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3 rights as a consumer, or information about how to file a complaint
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4 by calling 1-800-522-0071; or you may write the Oklahoma Insurance
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5 Department at 400 NE 50th St., Oklahoma City, OK 73105.";
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6 11. A statement that under any method of compensation, the
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7 total commission payable to the public insurance adjuster, including
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8 expenses, direct costs, or any other costs accrued by the public
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9 insurance adjuster, must not exceed ten percent (10%) of the amount
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10 of the insurance settlement;
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11 12. If applicable, a statement disclosing how payments issued
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12 before the effective date of the contract will be used in
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13 determining compensation to the public insurance adjuster; and
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14 13. A clear and prominent statement of the public insurance
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15 adjuster's commission including:
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16 a. the method of calculating the commission for the
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17 public insurance adjuster, whether an hourly rate,
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18 flat fee, percentage of settlement, or another method
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19 of compensation, specifically:
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20 (1) if an hourly rate, the contract must state the
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21 hourly rate and how it will be applied to hours
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22 of service provided by the public insurance
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23 adjuster to calculate the amount payable,
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 1 (2) if a flat fee, the contract must state the amount
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2 that will be payable to the public insurance
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3 adjuster,
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4 (3) if a percentage, the contract must state the
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5 exact percentage that will be applied to the
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6 settlement on the claim to calculate the amount
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7 payable to the public insurance adjuster, or
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8 (4) if another method of calculation is chosen, the
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9 contract must include a detailed explanation of
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10 how the amount payable will be determined based
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11 on services provided by the public insurance
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12 adjuster,
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13 b. a general description of services the public insurance
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14 adjuster will provide under the contract,
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15 c. a description of the claim and property damage,
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16 location, and event date, and
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17 d. if based on an hourly rate, a provision that the
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18 public insurance adjuster will provide an invoice for
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19 services that includes a detailed listing of services
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20 provided and separate costs payable to the public
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21 insurance adjuster as part of the commission based on
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22 the claim settlement, including expenses, direct
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23 costs, and any other accrued costs.
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 1 C. The contract must not contain any terms or conditions that
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2 have the effect of limiting or nullifying any requirements of the
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3 Oklahoma Statutes, this act, or other rules of the Department.
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4 D. All public insurance adjusters in Oklahoma must use a
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5 written contract that is in the form prescribed by the Department
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6 and that complies with all relevant statutory requirements and
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7 department rules. Public insurance adjusters must select from the
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8 following contract form options:
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9 1. A standard language contract developed by the Department; or
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10 2. A contract filed and approved by the Department before use.
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11 E. All contracts must be submitted with an original adjuster
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12 license application or an application for renewal to the
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13 Department's agent and adjuster licensing Office. Contracts also
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14 must be submitted to the office upon any modification or amendment
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15 of terms or conditions between license renewals.
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16 F. The failure by a public insurance adjuster or other
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17 individual to use a properly authorized and approved contract may
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18 result in suspension, nonrenewal, revocation of the adjuster's
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19 license, or other administrative penalty.
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20 SECTION 5. NEW LAW A new section of law to be codified
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21 in the Oklahoma Statutes as Section 6228 of Title 36, unless there
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22 is created a duplication in numbering, reads as follows:
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23 Public insurance adjusters shall provide a copy of a contract
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24 with an insured to the insurer upon request.
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 1 SECTION 6. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 6229 of Title 36, unless there
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3 is created a duplication in numbering, reads as follows:
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4 A. Construction contractors are prohibited from settling claims
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5 or negotiating claims without first being issued a public adjuster
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6 license.
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7 B. No person or entity may act as a public adjuster and a
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8 construction contractor on the same claim.
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9 C. Construction contractors are prohibited from hiring a public
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10 adjuster.
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11 D. A public adjuster shall not have a financial interest in a
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12 construction contractor employed on a claim worked by the public
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13 adjuster.
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14 E. Owner's representatives are allowed to work a claim with a
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15 related public adjuster as long as neither engages as a construction
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16 contractor.
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17 F. Any violation of this section shall result in a fine of up
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18 to One Thousand Dollars ($1,000.00) per violation. Fine monies
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19 shall be deposited into the State General Revenue Fund.
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20 SECTION 7. AMENDATORY 36 O.S. 2021, Section 6212, is
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21 amended to read as follows:
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22 Section 6212. A. The Insurance Commissioner or an
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23 administrator approved by the Insurance Commissioner shall collect a
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24 fee of Twenty Dollars ($20.00) for an examination for an adjuster's
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 1 license in any of the following single classes of business. The fee
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2 for any examination which includes two or more classes of business
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3 shall not exceed Forty Dollars ($40.00). The classes of business
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4 are:
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5 1. Motor vehicle physical damage;
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6 2. Fire and allied lines (property);
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7 3. Casualty;
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8 4. Workers' compensation;
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9 5. Crime and fidelity bonds; and
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10 6. Crop/hail.
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11 B. The Commissioner shall collect the following fees for an
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12 adjuster's license:
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13 1. For a license in any single class of business, every two (2)
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14 years, Thirty Dollars ($30.00);
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15 2. For a license in any combination of two or more classes of
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16 business, every two years, Fifty Dollars ($50.00);
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17 3. Public adjuster, every two years, Thirty Dollars ($30.00);
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18 4. Emergency adjuster, as provided for in Section 6218 of this
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19 title, each year, Fifteen Dollars ($15.00); and
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20 5. Apprentice adjuster, as provided for in Section 6204.1 of
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21 this title, Twenty Dollars ($20.00).
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22 C. The fees prescribed in this section shall accompany the
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23 application for an original license or a renewal of a license.
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 1 D. The fee for the original license or renewal license shall be
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2 coll