MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Insurance
By: Representative Turner
AN ACT TO CREATE THE MISSISSIPPI PUBLIC ADJUSTER PROFESSIONAL STANDARDS REFORM ACT; TO AMEND SECTION 83-17-503, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE LICENSURE FOR INDEPENDENT AND PUBLIC ADJUSTERS BY THE DEPARTMENT OF INSURANCE; TO PROVIDE HOW A PUBLIC ADJUSTER SHALL DEMONSTRATE FINANCIAL RESPONSIBILITY; TO PROVIDE WHEN LICENSES SHALL NOT BE REQUIRED; TO PROVIDE FOR TEMPORARY REGISTRATION FOR EMERGENCY INDEPENDENT ADJUSTERS; TO PROVIDE FOR THE LICENSING OF NONRESIDENTS; TO CREATE A NEW SECTION OF LAW THAT PROVIDES THAT A PUBLIC ADJUSTER SHALL NOT PROVIDE SERVICES TO AN INSURED UNTIL A WRITTEN CONTRACT WITH THE INSURED HAS BEEN EXECUTED; TO PROVIDE FOR THE TERMS AND THE CONTENT OF THE CONTRACT; TO CREATE A NEW SECTION OF LAW THAT REQUIRES A PUBLIC ADJUSTER TO GIVE AN INSURED WRITTEN NOTICE OF THE INSURED'S RIGHTS; TO PROVIDE THE RESPONSIBILITIES OF THE PUBLIC ADJUSTER; TO CREATE A NEW SECTION OF LAW THAT PROVIDES THAT ALL FUNDS RECEIVED OR HELD BY A PUBLIC ADJUSTER ON BEHALF OF AN INSURED TOWARD THE SETTLEMENT OF A CLAIM SHALL BE HANDLED IN A FIDUCIARY CAPACITY AND DEPOSITED INTO CERTAIN FIDUCIARY TRUST ACCOUNTS; TO CREATE A NEW SECTION OF LAW THAT PROVIDES FOR THE COMMISSIONS THAT A PUBLIC ADJUSTER MAY BE CHARGED AND THE FEES THAT A PUBLIC ADJUSTER MAY CHARGE; TO CREATE A NEW SECTION OF LAW THAT PROVIDES CAUSES FOR THE COMMISSIONER OF INSURANCE TO PLACE ON PROBATION, SUSPEND OR REVOKE A LICENSE OR REFUSE TO RENEW THE LICENSE; TO PROVIDE THE CIVIL PENALTIES AND FINES THAT MAY BE IMPOSED WHEN A LICENSE IS DENIED, SUSPENDED OR REVOKED; TO AUTHORIZE THE COMMISSIONER TO PROMULGATE RULES AND REGULATIONS; TO AMEND SECTIONS 83-17-505, 83-17-507 AND 83-17-511, MISSISSIPPI CODE OF 1972, TO DELETE THE PROVISIONS IN THEIR ENTIRETY; TO BRING FORWARD SECTIONS 83-17-501, 83-17-509, 83-17-513, 83-17-515, 83-17-517, 83-17-519, 83-17-521, 83-17-523, 83-17-525 AND 83-17-527, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; TO AMEND SECTIONS 83-17-401, 83-17-403, 83-17-405, 83-17-407, 83-17-409, 83-17-411, 83-17-413, 83-17-415, 83-17-417, 83-17-419, 83-17-421, 83-17-423 AND 83-17-425, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Mississippi Public Adjuster Professional Standards Reform
Act."
SECTION 2. Section 83-17-503, Mississippi Code of 1972, is amended as follows:
83-17-503. (1)
Except as provided in this section, no person shall act as or hold
himself out to be * * *
an independent or public adjuster in this state unless he is licensed
therefor by the * * *
department as an independent or public adjuster, except that an
individual, who is undergoing education and training as a public adjuster under
the direction and supervision of a licensed public adjuster for a period not
exceeding twelve (12) months may act as a public adjuster without having a
public adjuster's license, if at the beginning of such training period, the
name of such trainee has been registered as such with the commissioner.
(2) (a) An individual applying for a resident independent or public adjuster license shall make an application to the Commissioner of Insurance on the appropriate uniform individual application and in a format prescribed by the commissioner.
(b) An applicant under paragraph (a) of this subsection shall declare under penalty of suspension, revocation, or refusal of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief.
(c) Before approving an application submitted under paragraph (a) of this subsection, the commissioner shall find that the individual to be licensed:
(i) Is at least eighteen (18) years of age;
(ii) Is eligible to designate Mississippi as the individual's home state;
(iii) Is trustworthy, reliable, and of good reputation, evidence of which shall be determined through an investigation by the commissioner;
(iv) Has not committed any act that is a ground for probation, suspension, revocation, or refusal of a license as set forth in Section 83-17-519;
(v) Has successfully passed the examination for the adjuster license and the applicable line of authority for which the individual has applied; and
(vi) Is financially responsible to exercise the license.
(3) (a) To demonstrate financial responsibility, a person applying for a public adjuster license shall obtain a bond or irrevocable letter of credit prior to issuance of a license and shall maintain the bond or letter of credit for the duration of the license with the following limits:
(i) A surety bond executed and issued by an insurer authorized to issue surety bonds in Mississippi, which bond shall:
1. Be in the minimum amount of Fifty Thousand Dollars ($50,000.00);
2. Be in favor of the State of Mississippi;
3. Specifically authorize recovery of any person in Mississippi who sustained damages as the result of the public adjuster's erroneous acts, failure to act, conviction of fraud, or conviction for unfair trade practices in his or her
capacity as a public adjuster; and
4. Not be terminated unless written notice is given to the licensee at least thirty (30) days prior to the termination; or
(ii) An irrevocable letter of credit issued by a qualified financial institution, which letter of credit shall:
1. Be in the minimum amount of Fifty Thousand Dollars ($50,000.00);
2. Be subject to lawful levy of execution on behalf of any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, conviction of fraud, or conviction for unfair practices in his or her capacity as a public adjuster; and
3. Not be terminated unless written notice is given to the licensee at least thirty (30) days prior to the termination.
(b) The commissioner may ask for evidence of financial responsibility at any time the commissioner deems relevant.
(c) If the evidence of financial responsibility terminates or becomes impaired, the public adjuster license shall:
(i) Automatically terminate; and
(ii) Be promptly surrendered to the commissioner without demand.
(4) (a) A business entity applying for a resident independent or public adjuster license shall make an application to the commissioner on the appropriate uniform business entity application and in a format prescribed by the commissioner.
(b) An applicant under paragraph (a) of this subsection shall declare under penalty of suspension, revocation, or refusal of the license that the statements made in the application
are true, correct, and complete to the best of the business entity's knowledge and belief.
(c) Before approving an application submitted under paragraph (a) of this subsection, the commissioner shall find that the business entity:
(i) Is eligible to designate Mississippi as its home state;
(ii) Has designated a licensed independent or public adjuster responsible for the business entity's compliance with the insurance laws and regulations of Mississippi; and
(iii) Has not committed an act that is a ground for probation, suspension, revocation, or refusal of an independent or public adjuster's license as set forth in Section 83-17-519.
(5) For applications made under this section, the commissioner may:
(a) Require additional information or submissions from applicants; and
(b) Obtain any documents or information reasonably necessary to verify the information contained in an application.
(6) Unless denied licensure pursuant to Section 83-17-519, a person or business entity who has met the requirements of subsections (2) to (5) of this section shall be issued an independent or public adjuster license.
(7) An independent adjuster may qualify for a license in one or more of the following lines of authority:
(a) Property and casualty;
(b) Workers' compensation; or
(c) Crop.
(8) A public adjuster may qualify for a license in one or more of the following lines of authority:
(a) Property and casualty; or
(b) Crop.
(9) Notwithstanding any other provision of this article, a license as an independent adjuster shall not be required of the following:
(a) An individual who is sent into Mississippi on behalf of an insurer for the sole purpose of investigating or making adjustment of a particular loss resulting from a catastrophe, or for the adjustment of a series of losses resulting from a catastrophe common to all losses;
(b) An attorney licensed to practice law in Mississippi, when acting in his or her professional capacity as an attorney;
(c) A person employed solely to obtain facts surrounding a claim or to furnish technical assistance to a licensed independent adjuster;
(d) An individual who is employed to investigate suspected fraudulent insurance claims, but who does not adjust losses or determine claims payments;
(e) A person who:
(i) Solely performs executive, administrative, managerial, or clerical duties, or any combination thereof; and
(ii) Does not investigate, negotiate, or settle claims with policyholders, claimants, or their legal representatives;
(f) A licensed health care provider or its employee who provides managed care services if the services do not include the determination of compensability;
(g) A health maintenance organization or any of its employees or an employee of any organization providing managed care services if the services do not include the determination of compensability;
(h) A person who settles only reinsurance or subrogation claims;
(i) An officer, director, manager, or employee of an authorized insurer, surplus lines insurer, or risk retention group, or an attorney-in-fact of a reciprocal insurer;
(j) A United States manager of the United States branch of an alien insurer;
(k) A person who investigates, negotiates, or settles claims arising under a life, accident and health, or disability insurance policy or annuity contract;
(l) An individual employee, under a self-insured arrangement, who adjusts claims on behalf of the individual's employer;
(m) A licensed agent, attorney-in-fact of a reciprocal insurer, or managing general agent of the insurer, to whom claim authority has been granted by an insurer; or
(n) (i) A person who:
1. Is an employee of a licensed independent adjuster, is an employee of an affiliate that is a licensed independent adjuster, or is supervised by a licensed independent adjuster, if there are no more than twenty-five (25) persons under the supervision of one (1) licensed individual independent adjuster or licensed agent who is exempt from licensure pursuant to paragraph (m) of this subsection;
2. Collects claim information from insureds or claimants;
3. Enters data into an automated claims adjudication system; and
4. Furnishes claim information to insureds or claimants from the results of the automated claims adjudication system.
(ii) For purposes of this paragraph, "automated claims adjudication system" means a preprogrammed computer system designed for the collection, data entry, calculation, and system-generated final resolution of consumer electronic products insurance claims that complies with claim settlement practices.
(10) Notwithstanding any other provision of this article, a license as a public adjuster shall not be required of the following:
(a) An attorney licensed to practice law in Mississippi, when acting in his or her professional capacity as an attorney;
(b) A person who negotiates or settles claims arising under a life or health insurance policy or an annuity contract;
(c) A person employed only for the purpose of obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts;
(d) A licensed health care provider or its employee who prepares or files a health claim form on behalf of a patient; or
(e) An employee or agent of an insurer adjusting claims relating to food spoilage with respect to residential property insurance in which the amount of coverage for the applicable type of loss is contractually limited to One Thousand Dollars ($1,000.00) or less.
(11) For purposes of this section, except as otherwise provided in subsection (15) of this section, "home state" means any state or territory of the United States or the District of Columbia in which an independent or public adjuster:
(a) Maintains his or her principal place of residence or business; and
(b) Is licensed to act as a resident independent or public adjuster.
(12) Temporary registration for emergency independent adjusters shall be issued by the commissioner in the event of a catastrophe declared in Mississippi in the following manner:
(a) An insurer shall notify the commissioner by submitting an application for temporary emergency registration of each individual not already licensed in the state where the catastrophe has been declared, who will act as an emergency independent adjuster on behalf of the insurer;
(b) A person who is otherwise qualified to adjust claims, but who is not already licensed in the state, may act as an emergency independent adjuster and adjust claims if, within five (5) days of deployment to adjust claims arising from the catastrophe, the insurer notifies the commissioner by providing the following information, in a format prescribed by the commissioner:
(i) The name of the individual;
(ii) The Social Security number of the individual;
(iii) The name of the insurer that the independent adjuster will represent;
(iv) The catastrophe or loss control number;
(v) The catastrophe event name and date; and
(vi) Any other information the commissioner deems necessary; and
(c) An emergency independent adjuster's registration shall remain in force for a period not to exceed ninety (90) days, unless extended by the commissioner.
(13) (a) As used in this subsection, "home state" has the same meaning as in subsection (13) of this section, except that for purposes of this subsection the term includes any state or territory of the United States or the District of Columbia in which an applicant under this subsection is licensed to act as a resident independent or public adjuster if the state or territory of the applicant's principal place of residence does not issue an independent or public adjuster license.
(b) Unless refused licensure in accordance with Section 83-17-519, a nonresident person shall receive a nonresident independent or public adjuster license if:
(i) The person is currently licensed in good standing as an independent or public adjuster in his, her, or its home state;
(ii) The person has submitted the proper request for licensure;
(iii) The person has submitted, in a form or format prescribed by the commissioner, the uniform individual application; and
(iv) The person's designated home state issues nonresident independent or public adjuster licenses to persons of Mississippi on the same basis.
(c) The commissioner may:
(i) Verify an applicant's licensing status through any appropriate database, including the database maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries; or
(ii) Request certification of an applicant's good standing.
(d) As a condition to the continuation of a nonresident adjuster license, the licensee shall maintain a resident adjuster license in his, her, or its home state.
(e) A nonresident adjuster license issued under this subsection shall terminate and be surrendered immediately to the commissioner if the licensee's resident adjuster license terminates for any reason, unless:
(i) The termination is due to the licensee being issued a new resident independent or public adjuster license in his, her, or its new home state; and
(ii) The new resident state or territory has reciprocity with Mississippi.
( * * *14) Any person who violates the
provisions of this section shall be guilty of a misdemeanor and, upon
conviction thereof, shall be punished by a fine of not more than One Thousand
Dollars ($1,000.00) or by confinement in the county jail for not more than one
(1) year, or by both such fine and confinement.
SECTION 3. (1) (a) Except as provided in paragraph (b) of this subsection, a public adjuster shall not provide services to an insured until a written contract with the insured has been executed on a form that has been pre-filed with and approved by the commissioner.
(b) The commissioner may approve a form that allows a public adjuster to be compensated for services provided to an insured prior to the execution of a written contract in emergency circumstances.
(c) A contract between a public adjuster and an insured in violation of paragraph (a) of this subsection shall not be enforceable in this state.
(d) A form pre-filed with the commissioner by a public adjuster for approval under paragraph (a) of this subsection shall be subject to disapproval by the commissioner at any time if the form is found to:
(i) Violate any provision of this chapter;
(ii) Contain or incorporate by reference any inconsistent, ambiguous, or misleading clauses; or
(iii) Contain any title, heading, or other indication of its provisions which is:
1. Misleading; or
2. Printed in a size of typeface or manner of reproduction so as to be substantially illegible.
(e) A contract between a public adjuster and an insured that was executed on a form that was pre-filed with and approved by the commissioner under paragraph (a) of this subsection prior to a disapproval of the form under paragraph (d) of this subsection shall be enforceable to the extent allowed by:
(i) Ordinary principles of contract; and
(ii) Any applicable state or federal laws implicated by the contract.
(2) A public adjuster shall ensure that all contracts between the public adjuster and the insured for services are in writing and contain the following terms:
(a) The legible full name of the adjuster signing the contract, as specified in the department's licensing records;
(b) The adjuster's permanent home state business address and phone number;
(c) The license number issued to the adjuster by the department;
(d) A title of "Public Adjuster Contract";
(e) The insured's full name, street address, insurer name, and policy number, if known or upon notification;
(f) A description of the loss or damage and its location, if applicable;
(g) A description of services to be provided to the insured;
(h) The signatures of the adjuster and the insured;
(i) The date the contract was signed by:
(i) The adjuster; and
(ii) The insured;
(j) Attestation language stating that the adjuster has a letter of credit or a surety bond as required by Section 2 of this act;
(k) The full salary, fee, commission, compensation, or other consideration the adjuster is to receive for services, including, but not limited to:
(i) If the compensation is based on a percentage of the insurance settlement, the exact percentage, which shall be in accordance with Section 6 of this act;
(ii) The initial expenses to be reimbursed to the adjuster from the proceeds of the claim payment, specified by type, with dollar estimates; and
(iii) Any additional expenses, if first approved by the insured;
(l) A statement that the adjuster shall not give legal advice or act on behalf of or aid any person in negotiating or settling a claim relating to bodily injury, death, or noneconomic damages;
(m) The process for rescinding the contract, including the date by which rescission of the contract by the adjuster or the insured may occur; and
(n) A statement that clearly states in substance the following: "Complaints regarding this contract or regarding the public adjuster may be filed with the consumer protection division of the Department of Insurance."
(3) (a) Compensation provisions in a contract between a public adjuster and an insured shall not be redacted in any copy of the contract provided to the commissioner.
(b) A redaction prohibited under paragraph (a) of this subsection shall constitute an omission of material fact.
(4) A contract between a public adjuster and an insured shall not contain any contract term that:
(a) Allows the adjuster's percentage fee to be collected when money is due from an insurer, but not paid;
(b) Allows the adjuster to collect the entire fee from the first check issued by an insurer, rather than as a percentage of each check issued by an insurer;
(c) Requires an insured to authorize an insurer to issue a check only in the name of the adjuster;
(d) Imposes collection costs or late fees;
(e) Allows the adjuster's rate of compensation to be increased based on the fact that a claim is litigated; or
(f) Precludes the adjuster from pursuing civil remedies.
(5) Prior to the signing of a contract with an insured, a public adjuster shall provide the insured with a separate disclosure document regarding the claim process that states the following:
"Property insurance policies obligate the insured to present a claim to his or her insurance company for consideration. Three (3) types of adjusters may be involved in the claim process as follows:
1. "Independent adjuster" means an insurance adjuster who is hired on a contract basis by an insurance company to represent the insurance company's interest in the settlement of the claims and who is paid by the insurance company. An independent adjuster shall not charge a fee to the insured; and
2. "Public adjuster" means an insurance adjuster who does not work for any insurance company. A public adjuster works for the insured to assist in the preparation, presentation, and settlement of the claim, and the insured hires a public adjuster by signing a contract agreeing to pay him or her a fee or commission based on a percentage of the settlement or another method of payment. The insured is not required to hire a public adjuster to help the insured meet his or her obligations under the policy, but has the right to hire a public adjuster. The insured has the right to initiate direct communications with the insured's attorney, the insurer, the insurer's adjuster, the insurer's attorney, and any other person regarding the settlement of the insured's claim. The public adjuster shall not be a representative or employee of the insurer. The salary, fee, commission, or other consideration paid to the public adjuster is the obligation of the insured, not the insurer."
(6) (a) A contract between a public adjuster and an insured shall be executed in duplicate to provide an original contract to:
(i) The public adjuster; and
(ii) The insured.
(b) A public adjuster's original contract shall be available at all times for inspection by the commissioner without notice.
(7) Within seventy-two (72) hours of entering into a contract with an insured, a public adjuster shall provide the insurer:
(a) A notification letter that:
(i) Has been signed by the insured; and
(ii) Authorizes the public adjuster to represent the insured's interest; and
(b) A copy of the contract.
(8) (a) The insured shall have the right to rescind a contract with a public adjuster within five (5) business days after the date the contract was signed.
(b) A rescission of a public adjuster contract shall be:
(i) In writing;
(ii) Mailed or delivered to the public adjuster at the address in the contract; and
(iii) Postmarked or received within the five (5) business day period.
(9) If an insured exercises the right to rescind a contract under subsection (8) of this section, anything of value given by the insured under the contract to the public adjuster shall be returned to the insured within fifteen (15) business days following receipt by the public adjuster of the rescission notice.
SECTION 4. (1) A public adjuster shall give an insured written notice of the insured's rights under this section and Sections 2 and 4 of this act.
(2) A public adjuster shall ensure that:
(a) Prompt notice of a claim is provided to the insurer;
(b) The property that is subject to a claim is available for inspection of the loss or damage by the insurer; and
(c) The insurer is given the opportunity to interview the insured directly about the loss or damage and claim.
(3) A public adjuster shall not restrict or prevent an insurer or its adjuster, or an attorney, investigator, or other person acting on behalf of the insurer, from:
(a) Having reasonable access, at reasonable times, to:
(i) The insured or claimant; or
(ii) The insured property that is the subject of a claim;
(b) Obtaining necessary information to investigate and respond to a claim; or
(c) Corresponding directly with the insured regarding the claim, except a public adjuster shall be copied on any correspondence with the insured relating to the claim.
(4) (a) A public adjuster shall not act or fail to reasonably act in any manner that obstructs or prevents the insurer or its adjuster from timely conducting an inspection of any part of the insured property for which there is a claim for loss or damage.
(b) Except as provided in paragraph (c) of this subsection, a public adjuster representing an insured may be present for the insurer's inspection.
(c) If the unavailability of a public adjuster, after a reasonable request by the insurer, otherwise delays the insurer's timely inspection of the property, the insured shall allow the insurer to have access to the property without the participation or presence of the public adjuster in order to facilitate the insurer's prompt inspection of the loss or damage.
(5) A public adjuster shall provide the insured, the insurer, and the commissioner with a written disclosure concerning any direct or indirect financial interest that the adjuster has with any other party who is involved in any aspect of the claim.
(6) A public adjuster shall not:
(a) Participate, directly or indirectly, in the reconstruction, repair, or restoration of damaged property that is the subject of a claim adjusted by the adjuster;
(b) Engage in any activities that may be reasonably construed as a conflict of interest, including, directly or indirectly, soliciting or accepting any remuneration of any kind or nature;
(c) Have a financial interest in any salvage, repair, or any other business entity that obtains business in connection with any claim that the public adjuster has a contract to adjust; or
(d) (i) Use claim information obtained in the course of any claim investigation for commercial purposes.
(ii) As used in subparagraph (i) of this paragraph, "commercial purposes" includes marketing or advertising used for the benefit of the public adjuster.
(e) File a complaint with the commissioner on behalf of an insured alleging an unfair claim settlement practice unless the insured has given written consent for the public adjuster to file the complaint on the insured's behalf.
SECTION 5. (1) All funds received or held by a public adjuster on behalf of an insured toward the settlement of a claim shall be:
(a) Handled in a fiduciary capacity; and
(b) Deposited into one or more separate noninterest-bearing fiduciary trust accounts in a financial institution licensed to do business in this state no later than the close of the second business day from the receipt of the funds.
(2) The funds referenced in subsection (1) of this section shall:
(a) Be held separately from any personal or nonbusiness funds;
(b) Not be commingled or combined with other funds;
(c) Be reasonably ascertainable from the books of accounts and records of the public adjuster; and
(d) Be disbursed within thirty (30) calendar days of any invoice received by the public adjuster upon approval of the insured or the claimant that the work has been satisfactorily completed.
(3) A public adjuster shall maintain an accurate record and itemization of any funds deposited into an account under subsection (1) of this section.
SECTION 6. (1) Except as provided in subsection (2) of this section:
(a) Any fee charged to an insured by a public adjuster shall be:
(i) Based only on the amount of the insurance settlement proceeds actually received by the insured; and
(ii) Collected by the public adjuster after the insured has received the insurance settlement proceeds from the insurer;
(b) A public adjuster may receive a commission for services provided under this subtitle consisting of:
(i) An hourly fee;
(ii) A flat rate;
(iii) A percentage of the total amount paid by the insurer to resolve a claim; or
(iv) Another method of compensation; and
(c) A public adjuster:
(i) Shall not charge an unreasonable fee; and
(ii) May charge a reasonable fee that does not exceed:
1. For non-catastrophic claims, fifteen percent (15%) of the total insurance recovery of the insured; and
2. For catastrophic claims, ten percent (10%) of the total insurance recovery of the insured.
(2) If an insurer, not later than seventy-two (72) hours after the date on which a loss or damage is reported to the insurer, either pays or commits in writing to pay the policy limit of the insurance policy to the insured, a public adjuster shall:
(a) Not receive a commission consisting of a percentage of the total amount paid by the insurer to resolve a claim;
(b) Inform the insured that the claim settlement amount may not be increased by the insurer; and
(c) Be entitled only to reasonable compensation from the insured for services provided by the adjuster on behalf of the insured, based on the time spent on the claim and expenses incurred by the adjuster prior to when the claim was paid or the insured received a written commitment to pay from the insurer.
SECTION 7. (1) The commissioner may place on probation, suspend, or may impose conditions upon the continuance of a license for not more than twenty-four (24) months, revoke, or refuse to issue or renew any license issued under this act, or may levy a civil penalty in accordance with Section 83-17-519, or any combination of actions for any one or more of the following causes:
(a) Providing incorrect, misleading, incomplete, or materially untrue information in a license application;
(b) Violating any insurance laws, or violating any administrative regulations, subpoena, or order of the commissioner or of another state's insurance commissioner;
(c) Obtaining or attempting to obtain a license through misrepresentation or fraud;
(d) Improperly withholding, misappropriating, or converting any monies or properties received in the course of doing insurance or the business of life settlements;
(e) Intentionally misrepresenting the terms of an actual or proposed insurance contract, life settlement contract, or application for insurance;
(f) Having been convicted of or having pled guilty or nolo contendere to any felony;
(g) Having admitted or been found to have committed any unfair insurance trade practice, insurance fraud, or fraudulent life settlement act;
(h) Using fraudulent, coercive, or dishonest practices; or demonstrating incompetence, untrustworthiness, or financial irresponsibility; or being a source of injury or loss to the public in the conduct of business in this state or elsewhere;
(i) Having an insurance license, life settlement license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;
(j) Surrendering or otherwise terminating any license issued by this state or by any other jurisdiction, under threat of disciplinary action, denial, or refusal of the issuance of or renewal of any other license issued by this state or by any other jurisdiction; or revocation or suspension of any other license held by the licensee issued by this state or by any other jurisdiction;
(k) Forging another's name to an application for insurance, to any other document related to an insurance transaction, or to any document related to the business of life settlements;
(l) Cheating, including improperly using notes or any other reference material to complete an examination for license;
(m) Knowingly accepting insurance from an individual or business entity who is not licensed, but who is required to be licensed under this subtitle;
(n) Failing to comply with an administrative or court order imposing a child support obligation;
(o) Failing to pay state income tax or to comply with any administrative or court order directing payment of state income tax;
(p) Having been convicted of a misdemeanor for which restitution is ordered in excess of Three Hundred Dollars ($300.00), or of any misdemeanor involving dishonesty, breach of trust, or moral turpitude;
(q) Failing to no longer meet the requirements for initial licensure; or
(r) Any other cause for which issuance of the license could have been refused, had it then existed and been known to the commissioner.
(2) (a) For any public adjuster or apprentice adjuster supervised by a public adjuster as provided in Section 83-17-503, the commissioner may deny, suspend, or revoke the adjuster's license or impose a fine not to exceed Five Thousand Dollars ($5,000.00) per act against the adjuster, or both, for any of the following causes:
(i) Violating any provision of this chapter;
(ii) Violating any administrative regulation or order of the commissioner;
(iii) Receiving payment or anything of value as a result of an unfair or deceptive practice;
(iv) Receiving or accepting any fee, kickback, or other thing of value pursuant to any agreement or understanding, oral or otherwise, from anyone other than an insured;
(v) Entering into a split-fee arrangement with another person who is not a public adjuster; or
(vi) Being otherwise paid or accepting payment for public adjuster services that have not been performed.
(b) The sanctions and penalties under this subsection shall be in addition to any other remedies, penalties, or sanctions available to the commissioner against a public adjuster or an apprentice adjuster supervised by a public adjuster under Section 83-17-519, under this section, or under any other law.
(3) The license of a business entity may be suspended, revoked, or refused for any cause relating to an individual designated in or registered under the license if the commissioner finds that:
(a) An individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the business entity; and
(b) The violation was not reported to the department nor corrective action taken.
(4) The applicant or licensee may make written request for a hearing in accordance with Section 83-17-519.
(5) The commissioner shall retain the authority to enforce the provisions and penalties of this chapter against any individual or business entity who is under investigation for or charged with a violation of this chapter, even if the individual's or business entity's license has been surrendered or has lapsed by operation of law.
(6) The sanctions and penalties applicable to licenses and licensees under subsection (1) of this section shall also be applicable to registrations and registrants.
SECTION 8. Pursuant to Section 83-17-527, the commissioner may promulgate administrative regulations necessary for or as an aid to the effectuation of any provision of this act.
SECTION 9. Section 83-17-505, Mississippi Code of 1972, is amended as follows:
83-17-505. * * * [DELETED]
SECTION 10. Section 83-17-507, Mississippi Code of 1972, is amended as follows:
83-17-507. * * * [DELETED]
SECTION 11. Section 83-17-511, Mississippi Code of 1972, is amended as follows:
83-17-511.
* * *
[DELETED]
SECTION 12. Section 83-17-501, Mississippi Code of 1972, is brought forward as follows:
83-17-501. As used in this article, unless the context otherwise requires:
(a) "Certified" means, except as used in Section 83-17-519(2), written representations addressed to the commissioner concerning the integrity, competence and qualifications of a person, in form and content satisfactory to the commissioner, or concerning other matters as the commissioner may by regulation hereafter prescribe.
(b) "Commissioner" means the Commissioner of Insurance.
(c) "Department" means the Mississippi Insurance Department.
(d) "Insurer" means any insurance company or self-insured person or entity.
(e) "Public adjuster" means any person who, for compensation or any other thing of value on behalf of the insured and subject to the prohibition provided in Section 73-3-55:
(i) Acts or aids, solely in relation to first party claims arising under insurance contracts that insure the real or personal property of the insured, on behalf of an insured in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an insurance contract;
(ii) Advertises for employment as a public adjuster of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property; or
(iii) Directly or indirectly solicits business, investigates or adjusts losses, or advises an insured about first party claims for losses or damages arising out of policies of insurance that insure real or personal property for another person engaged in the business of adjusting losses or damages covered by an insurance policy, for the insured.
A public adjuster shall not include an attorney at law who does not advertise or represent that he is a public adjuster.
SECTION 13. Section 83-17-509, Mississippi Code of 1972, is brought forward as follows:
83-17-509. In the event of a catastrophe or emergency which arises out of a disaster, act of God, riot, civil commotion, conflagration or other similar occurrence, the commissioner, upon application, may issue an emergency license to persons who are residents or nonresidents of this state and who may or may not be otherwise licensed public adjusters. Such emergency license shall remain in force for a period not to exceed ninety (90) days, unless extended for an additional period of ninety (90) days by the commissioner. The applicant must be certified by (a) a person licensed under the provisions of this article, or by (b) such other person as may be approved by the commissioner. The licensed public adjuster or other person who certifies the applicant under the provisions of this section shall be responsible for the loss or claims practices of the emergency license holder.
Within five (5) days of any applicant beginning work as a public adjuster under this section, the application and certification provided for in the preceding paragraph shall be provided to the commissioner without such public adjuster being deemed in violation of this article, provided that the commissioner, after notice and hearing, may revoke the emergency license upon the grounds as otherwise contained in this article providing for revocation of a public adjuster's license.
The fee for an emergency license shall be in an amount not to exceed Fifty Dollars ($50.00) as determined by the commissioner and shall be due and payable within thirty (30) days of the issuance of such emergency license.
SECTION 14. Section 83-17-513, Mississippi Code of 1972, is brought forward as follows:
83-17-513. The commissioner shall adopt a procedure for certifying continuing education programs for public adjusters. Every individual seeking renewal of a public adjuster license, which has been in effect for a term of eighteen (18) months or less shall satisfactorily complete twelve (12) hours of study in approved continuing education courses. Every individual seeking renewal of a public adjuster license, which has been in effect for a term of more than eighteen (18) months shall satisfactorily complete twenty-four (24) hours of study in approved continuing education courses of which three (3) hours shall have a course concentration in ethics.
SECTION 15. Section 83-17-515, Mississippi Code of 1972, is brought forward as follows:
83-17-515. (1) Each applicant for a license as a public adjuster, before the issuance of such license, shall personally take and pass, to the satisfaction of the commissioner, an examination as a test of his qualifications and competency; but the requirement of an examination shall not apply to any of the following:
(a) An applicant for the renewal of a license issued hereunder;
(b) An applicant who is licensed as a public adjuster, as defined by this article, in another state with which state a reciprocal agreement has been entered into by the commissioner; or
(c) Any person who has completed a course or training program in adjusting for losses as prescribed and approved by the commissioner and is certified to the commissioner upon completion of the course that such person has completed the course or training program, and has passed an examination testing his knowledge and qualification, as prescribed by the commissioner.
(2) Each examination for a license as a public adjuster shall be as the commissioner may prescribe and shall be of sufficient scope reasonably to test the applicant's knowledge relative to the kinds of insurance which may be dealt with under the license applied for and the duties, responsibilities and laws of this state applicable to such a licensee.
(3) The commissioner shall prepare and make available to applicants a manual or instructions specifying in general terms the subjects which may be covered in any examination for such a license.
SECTION 16. Section 83-17-517, Mississippi Code of 1972, is brought forward as follows:
83-17-517. (1) The privilege license of an individual to act as a public adjuster shall continue from the date of issuance for original licenses or from the expiration date for existing licenses until the last day of the month of the licensee's birthday in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months. The privilege license of a business entity to act as a public adjuster shall continue from the date of issuance until May 31 in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
(2) Each public adjuster shall file an application for renewal of license on the form and in the manner prescribed by the commissioner for such purpose. Upon the filing of such application for renewal of license and the payment of the required fees, prior to the expiration date, the current license shall continue to be in force until the renewal license is issued by the commissioner or until the commissioner has refused for cause to issue such renewal license, as provided in this article, and has given notice of such refusal in writing to the public adjuster.
SECTION 17. Section 83-17-519, Mississippi Code of 1972, is brought forward as follows:
83-17-519. (1) A license may be refused, or a license duly issued may be suspended or revoked or the renewal thereof refused by the commissioner, or the commissioner may levy a civil penalty in an amount not to exceed Five Thousand Dollars ($5,000.00) per violation, or both, and any such penalty shall be deposited into the special fund of the State Treasury designated as the "Insurance Department Fund", if, after notice and hearing as hereinafter provided, he finds that the applicant for, or holder of, such license:
(a) Has intentionally made a material misstatement in the application for such license; or
(b) Has obtained, or attempted to obtain, such license by fraud or misrepresentation; or
(c) Has misappropriated or converted to his own use or illegally withheld money belonging to another person or entity; or
(d) Has otherwise demonstrated lack of trustworthiness or competence to act as a public adjuster; or
(e) Has been guilty of fraudulent or dishonest practices or has been convicted of a felony; or
(f) Has materially misrepresented the terms and conditions of insurance policies or contracts or failed to identify himself as a public adjuster; or
(g) Has obtained or attempted to obtain such license for a purpose other than holding himself out to the general public as a public adjuster; or
(h) Has violated any insurance laws, or any regulation, subpoena or order of the commissioner or of another state's commissioner of insurance.
(2) Before any license shall be refused (except for failure to pass a required written examination) or suspended or revoked or the renewal thereof refused hereunder, the commissioner shall give notice of his intention so to do, by certified mail, return receipt requested, to the applicant for or holder of such license, and shall set a date not less than twenty (20) days from the date of mailing such notice when the applicant or licensee may appear to be heard and produce evidence in opposition to such refusal, suspension or revocation. Such notice shall constitute automatic suspension of license if the person involved is a licensed public adjuster. In the conduct of such hearing, the commissioner or any regular salaried employee of the department specially designated by him for such purpose shall have the power to administer oaths, to require the appearance of and examine any person under oath, and to require the production of books, records or papers relevant to the inquiry upon his own initiative or upon the request of the applicant or licensee. Upon the termination of such hearing, findings shall be reduced to writing and, upon approval by the commissioner, shall be filed in his office; and notice of the findings shall be sent by certified mail, return receipt requested, to the applicant or licensee.
(3) Where the grounds set out in subsection (1)(c) or (1)(f) of this section are the grounds for any hearing, the commissioner may, in his discretion in lieu of the hearing provided for in subsection (2) of this section, file a petition requesting the court to suspend or revoke any license authorized hereunder in a court of competent jurisdiction of the county or district in which the alleged offense occurred. In such cases, subpoenas may be issued for witnesses, and mileage and witness fees paid as in other cases. All costs of such cause shall be paid by the defendant, if the finding of the court be against him.
(4) No licensee whose license has been revoked hereunder shall be entitled to file another application for a license as a public adjuster within one (1) year from the effective date of such revocation or, if judicial review of such revocation is sought, within one (1) year from the date of final court order or decree affirming such revocation. An application filed after such one-year period shall be refused by the commissioner unless the applicant shows good cause why the revocation of his license shall not be deemed a bar to the issuance of a new license.
(5) From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
(6) From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.
SECTION 18. Section 83-17-521, Mississippi Code of 1972, is brought forward as follows:
83-17-521. Any person aggrieved by any action or decision of the commissioner under the provisions of this article may appeal therefrom to the Circuit Court of the First Judicial District of Hinds County in the manner provided by law. The circuit court shall have the authority and jurisdiction to hear the appeal and render its decision in regard thereto in termtime or vacation.
SECTION 19. Section 83-17-523, Mississippi Code of 1972, is brought forward as follows:
83-17-523. (1) Public adjusters shall ensure that all contracts for their services are in writing, signed by the insured and the public adjuster who solicited the contract, and a copy of the contract shall be provided to the insured upon execution. All such contracts shall be subject to the following provisions:
(a) No public adjuster shall charge, agree to, or accept as compensation any payment, commission, fee or other thing of value equal to more than ten percent (10%) of any insurance settlement or the proceeds of any claim investigated.
(b) No public adjuster shall require, demand or accept any fee, retainer, compensation, deposit or other thing of value, prior to partial or full settlement of a claim.
(c) Any costs to be reimbursed to a public adjuster out of the proceeds of a settlement shall be specified by kind and estimated amounts.
(d) A public adjuster's contract with the insured shall be revocable or cancelable by the insured without cause and without penalty or obligation for at least five (5) business days after the contract is executed by the insured. Nothing in this provision shall be construed to prevent an insured from pursuing any civil legal remedy to revoke or cancel the contract after the expiration of such cancellation period.
(e) No public adjuster may require that an insured authorize an insurer to issue a check only in the name of the public adjuster.
(f) No public adjuster shall be entitled to any payment, commission, fee or other thing of value of any insurance settlement or agreed settlement that was made between the insured and the insurance company before the public adjuster and the insured entered into a contract for services.
(g) If an insurance company extends a written settlement offer to the insured before the insured enters into a contract with a public adjuster for services, then a public adjuster may only be entitled to an amount that is no more than ten percent (10%) of the settlement amount that is in excess of the amount that was offered in writing to the insured prior to entering into the contract with the public adjuster.
(2) Public adjusters shall adhere to the following ethical requirements:
(a) No public adjuster shall undertake the adjustment of any claim for which the public adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise.
(b) No public adjuster shall, as a public adjuster, represent any person or entity whose claim the public adjuster has previously adjusted while acting as an independent adjuster representing any insurer, either directly or through an independent adjusting firm retained by the insurer.
(c) A public adjuster shall not knowingly make any oral or written material misrepresentations or statements to any insured or potential insured which are false and intended to injure any person engaged in the business of insurance.
(d) No public adjuster shall knowingly enter into a contract to adjust a residential property claim subsequent to a declaration of total loss by an insurer, unless the services to be provided by the public adjuster can reasonably be expected to result in the insured obtaining an insurance settlement, net of the public adjuster's compensation, in excess of the amount the insured would have obtained without the services of the public adjuster.
(e) A public adjuster shall advise each insured that the insured has the right to retain an attorney at law of his choice throughout the public adjuster's investigation and adjustment of the claim.
(f) If the claim is not settled by the public adjuster, the public adjuster shall advise the insured that the insured has the right to retain an attorney at law of his choice.
(g) No public adjuster shall contract for, agree to, or receive anything of value from any attorney at law or other person acting in concert with any attorney at law (i) for referring claims to the attorney, or (ii) in connection with any claim for which the public adjuster has performed or intends to perform services.
(h) No public adjuster shall split any attorney's fee with any attorney at law.
(i) A public adjuster shall not testify as an expert witness in any judicial or administrative proceeding while maintaining a pecuniary interest in the outcome of the proceeding, as otherwise permitted by Section 83-17-523(1)(a); provided, however, that a public adjuster may testify as an expert witness if pursuant to the terms of his contract his compensation is converted to a specified hourly rate, which rate (i) is subject to such limitations as may be prescribed by the commissioner, and (ii) is not subject to any contingencies. In the event of a conversion of the public adjuster's contract to an hourly rate agreement, the prior fee arrangement shall be inadmissible at trial.
(j) A public adjuster shall not participate, directly or indirectly, in the reconstruction, repair or restoration of damaged property that is the subject of a claim adjusted by the adjuster.
(k) A public adjuster shall not engage in any activities that may be reasonably construed as a conflict of interest, including, directly or indirectly, soliciting or accepting any remuneration of any kind or nature.
(l) A public adjuster shall not have a financial interest in any salvage, repair or any other business entity that obtains business in connection with any claim that the public adjuster has a contract to adjust.
SECTION 20. Section 83-17-525, Mississippi Code of 1972, is brought forward as follows:
83-17-525. This article shall not be construed as entitling a person who is not licensed by the Mississippi Supreme Court to practice law in this state.
SECTION 21. Section 83-17-527, Mississippi Code of 1972, is brought forward as follows:
83-17-527. This article is declared to be cumulative and supplemental to all other valid statutes relating to insurance agents, solicitors, adjusters and public adjusters. The Commissioner of Insurance is directed and authorized to make such reasonable rules and regulations as may be necessary for the administration of this article, including, but not limited to, rules and regulations (a) establishing procedures for the filing and approval of contracts to be used by public adjusters and/or prescribing one or more model contracts for use by public adjusters, (b) regulating solicitations by public adjusters, and (c) establishing bonding and/or errors and omissions insurance requirements for public adjusters.
SECTION 22. Section 83-17-401, Mississippi Code of 1972, is brought forward as follows:
83-17-401. As used in this article, unless the context otherwise requires:
(a) "Adjuster" means any person who, as an independent contractor, or as an employee of an independent contractor, adjustment bureau, association, insurance company or corporation, managing general agent or self-insured, investigates or adjusts losses on behalf of either an insurer or a self-insured, or any person who supervises the handling of claims. "Adjuster" shall not include:
(i) An attorney-at-law who adjusts insurance losses from time to time and incidental to the practice of law, and who does not advertise or represent that he is an adjuster;
(ii) A salaried employee of an insurer who is regularly engaged in the adjustment, investigation or supervision of insurance claims;
(iii) Persons employed only for the purpose of furnishing technical assistance to a licensed adjuster, including, but not limited to, photographers, estimators, private detectives, engineers, handwriting experts and attorneys-at-law;
(iv) A licensed agent or general agent of an authorized insurer who processes undisputed or uncontested losses, or both, for such insurer under policies issued by the licensed agent or general agent;
(v) A person who performs clerical duties with no negotiations with the parties on disputed or contested claims, or both;
(vi) Any person who handles claims arising under life, accident and health insurance policies;
(vii) Any person who is a multiperil crop insurance adjuster; or
(viii) Any person who collects claim information from, or furnishes claim information to, insureds or claimants, and who performs data entry including entering data into an automated claims adjudication system, if the person is an employee of a licensed independent adjuster or its affiliate where no more than twenty-five (25) such persons are under the supervision of one (1) licensed independent adjuster or licensed agent. A licensed agent who is acting as a supervisor and adjusting portable electronics insurance claims in accordance with this subparagraph does not need to be licensed as an adjuster.
(b) "Insurer" means any insurance company or self-insured.
(c) "Commissioner" means the Commissioner of Insurance.
(d) "Automated claims adjudication system" means a preprogrammed computer system designed for the collection, data entry, calculation and final resolution of portable electronics insurance claims which:
(i) May only be utilized by a licensed independent adjuster, licensed agent or supervised persons operating in accordance with paragraph (a)(viii) of this section; and
(ii) Must comply with all claims payment requirements of the insurance code; and must be certified as compliant with this section by a licensed independent adjuster that is an officer of a licensed business entity under this chapter.
(e) "Workers' compensation adjuster" means an adjuster whose scope of licensure is limited to workers' compensation insurance. A workers' compensation adjuster may not represent an insured individual. A workers' compensation adjuster must comply with all licensing and continuing education requirements as are prescribed by the commissioner pursuant to this article.
SECTION 23. Section 83-17-403, Mississippi Code of 1972, is brought forward as follows:
83-17-403. (1) No person shall act as or hold himself out to be an adjuster in this state unless he is licensed therefor by the Commissioner of Insurance in this state, except that an individual, who is undergoing education and training as an adjuster under the direction and supervision of a licensed adjuster for a period not exceeding twelve (12) months may act as an adjuster without having an adjuster's license, if at the beginning of such training period, the name of such trainee has been registered as such with the commissioner.
(2) Any person who violates the provisions of this section shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than Two Hundred Fifty Dollars ($250.00) or by confinement in the county jail for not more than six (6) months, or by both such fine and confinement.
SECTION 24. Section 83-17-405, Mississippi Code of 1972, is brought forward as follows:
83-17-405. Application for a license as an insurance adjuster shall be made to the commissioner upon forms as prescribed and furnished by the commissioner. As a part of, or in connection with, any such application, the applicant shall furnish such information concerning his identity, personal history, experience, business record and any other pertinent facts as the commissioner may reasonably require.
SECTION 25. Section 83-17-407, Mississippi Code of 1972, is brought forward as follows:
83-17-407. The commissioner may waive any license requirement for an applicant with a valid license from another state having license requirements substantially equivalent to those of this state, or an applicant with a certification from a person or entity approved by the commissioner that provides adjuster education and training and has met the standards as set forth by the commissioner regarding pre-licensing coursework and examination. No applicant with a valid license from another state shall be rejected solely on the basis that the individual is not a resident of the United States of America.
SECTION 26. Section 83-17-409, Mississippi Code of 1972, is brought forward as follows:
83-17-409. In the event of a catastrophe or emergency which arises out of a disaster, act of God, riot, civil commotion, conflagration or other similar occurrence, the commissioner, upon application, shall issue an emergency license to persons who are residents or nonresidents of this state and who may or may not be otherwise licensed adjusters. Such emergency license shall remain in force for a period not to exceed ninety (90) days, unless extended for an additional period of ninety (90) days by the commissioner. The applicant must be certified by (a) a person licensed under the provisions of this article, or by (b) an insurer who maintains an office in this state and is licensed to do business in this state. The licensed adjuster or insurer who certifies the applicant under the provisions of this section shall be responsible for the loss or claims practices of the emergency license holder.
Within five (5) days of any applicant beginning work as an adjuster under this section, the employer of such adjuster shall certify to the commissioner such application without being deemed in violation of this article, provided that the commissioner, after notice and hearing, may revoke the emergency license upon the grounds as otherwise contained in this article providing for revocation of an adjuster’s license.
The fee for an emergency license shall be in an amount not to exceed Fifty Dollars ($50.00) as determined by the commissioner and shall be due and payable within thirty (30) days of the issuance of such emergency license.
SECTION 27. Section 83-17-411, Mississippi Code of 1972, is brought forward as follows:
83-17-411. An insurer shall not knowingly refer any claim or loss for adjustment in this state to any person purporting to be or acting as an insurance adjuster unless such person is currently licensed as such as required in this article.
SECTION 28. Section 83-17-413, Mississippi Code of 1972, is brought forward as follows:
83-17-413. The commissioner shall license as an insurance adjuster only an individual who has otherwise complied with this article and who has furnished evidence satisfactory to the commissioner that:
(a) He is at least eighteen (18) years of age;
(b) He is a bona fide resident of this state, or is a resident of a state or country which will permit residents of this state to act as insurance adjusters in such other state or country;
(c) If he is a nonresident of the United States, he has complied with all federal laws pertaining to employment or the transaction of business in the United States;
(d) He is a trustworthy person;
(e) He has had experience or special education or training with reference to the handling of loss claims under insurance contracts of sufficient duration and extent to make him competent to fulfill the responsibilities of an insurance adjuster; and
(f) He has successfully passed an examination as required by the commissioner in accordance with this article or has been exempted according to the provisions of this article.
SECTION 29. Section 83-17-415, Mississippi Code of 1972, is brought forward as follows:
83-17-415. The commissioner shall adopt a procedure for certifying continuing education programs. Each individual seeking renewal of an adjuster license, which has been in effect for a term of eighteen (18) months or less shall satisfactorily complete twelve (12) hours of study in approved continuing education courses. Every individual seeking renewal of an adjuster license, which has been in effect for a term of more than eighteen (18) months shall satisfactorily complete twenty-four (24) hours of study in approved continuing education courses, of which three (3) hours shall have a course concentration in ethics.
SECTION 30. Section 83-17-417, Mississippi Code of 1972, is brought forward as follows:
83-17-417. (1) Each applicant for a license as an adjuster, before the issuance of such license, shall personally take and pass, to the satisfaction of the commissioner, an examination as a test of his qualifications and competency; but the requirement of an examination shall not apply to any of the following:
(a) An applicant who for the one-year period next preceding July 1, 1993, has been principally engaged in the investigation, adjustment or supervision of losses and who is so engaged on July 1, 1993;
(b) An applicant for the renewal of a license issued hereunder;
(c) An applicant who is licensed as an insurance adjuster, as defined by this article, in another state with which state a reciprocal agreement has been entered into by the commissioner;
(d) Any person who possesses a certification from a person or entity approved by the commissioner that provides adjuster education and training and that requires, as a prerequisite to certification, an examination substantially equivalent to those of this state and approved by the commissioner; or
(e) Any person who has completed a course or training program in adjusting of losses as prescribed and approved by the commissioner and is certified to the commissioner upon completion of the course that such person has completed the course or training program, and has passed an examination testing his knowledge and qualification, as prescribed by the commissioner.
(2) Each examination for a license as an adjuster shall be as the commissioner may prescribe and shall be of sufficient scope reasonably to test the applicant's knowledge relative to the kinds of insurance which may be dealt with under the license applied for and the duties, responsibilities and laws of this state applicable to such a licensee.
(3) The commissioner shall prepare and make available to applicants a manual or instructions specifying in general terms the subjects which may be covered in any examination for such a license.
SECTION 31. Section 83-17-419, Mississippi Code of 1972, is brought forward as follows:
83-17-419. (1) The privilege license of an individual to act as an adjuster shall continue from the date of issuance for original licenses or from the expiration date for existing licenses until the last day of the month of the licensee's birthday in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months. The privilege license of a business entity to act as an adjuster shall continue from the date of issuance until May 31, in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
(2) Each adjuster shall file an application for renewal of license on the form and in the manner prescribed by the commissioner for such purpose. Upon the filing of such application for renewal of license and the payment of the required fees, the current license shall continue to be in force until the renewal license is issued by the commissioner or until the commissioner has refused for cause to issue such renewal license, as provided in this article, and has given notice of such refusal in writing to the adjuster.
SECTION 32. Section 83-17-421, Mississippi Code of 1972, is brought forward as follows:
83-17-421. (1) A license may be refused, or a license duly issued may be suspended or revoked or the renewal thereof refused by the commissioner if, after notice and hearing as hereinafter provided, he finds that the applicant for, or holder of, such license:
(a) Has wilfully violated any provision of the insurance laws of this state; or
(b) Has intentionally made a material misstatement in the application for such license; or
(c) Has obtained, or attempted to obtain, such license by fraud or misrepresentation; or
(d) Has misappropriated or converted to his own use or illegally withheld money belonging to an insurer or beneficiary; or
(e) Has otherwise demonstrated lack of trustworthiness or competence to act as an adjuster; or
(f) Has been guilty of fraudulent or dishonest practices or has been convicted of a felony; or
(g) Has materially misrepresented the terms and conditions of insurance policies or contracts; or wilfully exaggerated prospective returns on investment features of policies or fails to identify himself as an adjuster and in so doing receives a compensation for his participation in the sale of insurance; or
(h) Has made or issued, or caused to be made or issued, any statement misrepresenting or making incomplete comparisons regarding the terms or conditions of any insurance or annuity contract legally issued by any insurer, for the purpose of inducing or attempting to induce the owner of such contract to forfeit or surrender such contract or allow it to lapse for the purpose of replacing such contract with another; or
(i) Has obtained or attempted to obtain such license, not for the purpose of holding himself out to the general public as an adjuster, but primarily for the purpose of soliciting, negotiating or procuring insurance or annuity contracts covering himself or members of his family.
(2) Before any license shall be refused (except for failure to pass a required written examination) or suspended or revoked or the renewal thereof refused hereunder, the commissioner shall give notice of his intention so to do, by registered mail, to the applicant for or holder of such license and the insurer whom he represents or who desires that he be licensed, and shall set a date not less than twenty (20) days from the date of mailing such notice when the applicant or licensee and a duly authorized representative of the insurer may appear to be heard and produce evidence. Such notice shall constitute automatic suspension of license if the person involved is a licensed adjuster. In the conduct of such hearing, the commissioner or any regular salaried employee specially designated by him for such purpose shall have power to administer oaths, to require the appearance of and examine any person under oath and to require the production of books, records or papers relevant to the inquiry upon his own initiative or upon the request of the applicant or licensee. Upon the termination of such hearing, findings shall be reduced to writing and, upon approval by the commissioner, shall be filed in his office; and notice of the findings shall be sent by registered mail to the applicant or licensee and the insurer concerned.
(3) Where the grounds set out in subsection (1)(d) or (1)(g) are the grounds for any hearing, the commissioner may, in his discretion in lieu of the hearing provided for in subsection (2) of this section, file a petition to suspend or revoke any license authorized hereunder in a court of competent jurisdiction of the county or district in which the alleged offense occurred. In such cases, subpoenas may be issued for witnesses, and mileage and witness fees paid as in other cases. All costs of such cause shall be paid by the defendant, if found guilty, and if costs cannot be made and collected from the defendant, such costs shall be assessed against the company issuing the contract involved in such cause.
(4) No licensee whose license has been revoked hereunder shall be entitled to file another application for a license as an adjuster within one (1) year from the effective date of such revocation or, if judicial review of such revocation is sought, within one (1) year from the date of final court order or decree affirming such revocation. Such application, when filed, may be refused by the commissioner unless the applicant shows good cause why the revocation of his license shall not be deemed a bar to the issuance of a new license.
SECTION 33. Section 83-17-423, Mississippi Code of 1972, is brought forward as follows:
83-17-423. Any person aggrieved by any action or decision of the Commissioner of Insurance under the provisions of this article may appeal therefrom to the Circuit Court of the First Judicial District of Hinds County in the manner provided by law. The circuit court shall have the authority and jurisdiction to hear the appeal and render its decision in regard thereto in termtime or vacation.
SECTION 34. Section 83-17-425, Mississippi Code of 1972, is brought forward as follows:
83-17-425. This article is declared to be cumulative and supplemental to all other valid statutes relating to insurance agents, solicitors and adjusters.
SECTION 35. This act shall take effect and be in force from and after July 1, 2025.