Changes to The Maryland Insurance Article Affecting Public Adjusters

The Maryland General Assembly recently approved several amendments to the Subtitle of the Maryland Insurance Article (“Ins.”) applicable to licensed public adjusters (Ins. § 10-401-416).  These new amendments – established in 2024 Maryland Laws Chapter 826 (House Bill 36) – modify Sections 10-411(h) and 10-414(e)-(f) and become effective October 1, 2024.  

These changes: 

·       Modify the statutory language that all public adjuster contracts must include (Ins. § 10-411); 

·       Extend the insureds’ right of recission from three (3) business days to ten (10) from the date the public adjuster contract is signed (Ins. § 10-411);

·       Establish a time period in which public adjusters may not solicit or attempt to solicit clients (Ins. § 10-414(e)); and

·       Establish a notice requirement if a public adjuster enters into a public adjuster contract within seventy-two (72) hours of a loss giving rise to a claim ((Ins. § 10-414(f)).

Contract Language Changes: As of October 1, 2024, Ins. § 10-411(h) requires that all public adjuster contracts include a statement that:

1.         The insured has the right to rescind or cancel the contract within ten (10) business days after the date the contract is signed;

2.         The notice of rescission or cancellation shall be in writing and mailed or delivered to the public adjuster at the address stated in the contract within ten (10) business days after the date the contract is signed; 

3.         If the insured exercises the right to rescind or cancel the contract, the public adjuster shall, within fifteen (15) business days after the public adjuster receives the notice, return anything of value given by the insured under the contract; and 

4.         A public adjuster, or anyone acting on behalf of a public adjuster, may not solicit or attempt to solicit a client between the hours of 8:00 p.m. and 8:00 a.m.

Hours Of Solicitation Changes: As of October 1, 2024, Ins. § 10-414(e) prohibits public adjusters from soliciting or attempting to solicit a client between the hours of 8:00 p.m. and 8:00 a.m.

Reporting Requirement Changes: As of October 1, 2024, Ins. § 10-414(f) requires that a public adjuster who enters into a public adjuster contract during, or within seventy-two (72) hours after, the loss giving rise to an insurance claim provide notice to the Insurance Commissioner that the public adjuster has entered into the contract.  This notice (available here) must be electronically submitted within one (1) business day after entering into the contract.  

More information on these changes is provided in the Maryland Insurance Administration’s recent bulletin, Bulletin 24-18.  

For questions about these new changes or other legal issues affecting Maryland public adjusters, please contact the Insurance Group at Shapiro Sher.