MI | In 2010, the Director of the Michigan Department of Insurance approved a contract related to services provided by an adjuster for the insured. All licensed Public Adjusters are required to file the new contract with their renewal application and fee.
It has come to the attention of the Department of Insurance that “alternate payment agreements” have been entered into as addenda or additions to the approved contract. The Insurance Code does not permit the use of these addenda.
Therefore, the Director has approved a new Public Adjuster contract, which has been revised to clarify:
• that no addenda or changes to the approved contract are permitted under the statute in light of the legislative pronouncement that the DIFS-approved contract “shall constitute the entire agreement between the adjuster for the insured and the insured”; and
• that the 10% cap on payments/assignments to the adjuster applies to the amounts paid by the insurer in settlement of the loss as a result of the adjuster’s services related to coverage(s) authorized under the scope of the PA contract.
The effective date of the new contract is December 1, 2018. All licensed public adjusters must begin using the new contract on that date; and must file the new contract with DIFS prior to March 31, 2019. Bulletin 2010-06-INS is hereby superseded.