Senate Commerce Committee Statement to Senate, No. 1320 — State of New Jersey (May 13, 2024)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1320, State of New Jersey, dated May 13, 2024, reporting the bill favorably. The bill provides that no one licensed under the "Public Adjusters' Licensing Act" has a right to compensation from an insured for public adjuster services unless the contract meets stated requirements. The contract must state the license number of the signing public adjuster, define the services, the compensation and the insured's right to cancel on a form prescribed by the Commissioner of Banking and Insurance, and meet minimum standards set in the bill. The bill provides sample statements and requires a notice of right to cancel to be part of the contract.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
1320

STATE
OF NEW JERSEY

DATED: MAY 13,
2024

The Senate Commerce Committee reports favorably Senate
Bill No. 1320.

This
bill provides that no individual, firm, association, or corporation licensed
under the “Public Adjusters’ Licensing Act” has any right to compensation from
any insured for or on account of services rendered to an insured as a public
adjuster unless the contract stipulates certain information.

Under
the bill, a contract is required to:

(1) state
the license number of the public adjuster signing the contract and of the
company or firm, if the contract is in the name of a public adjusting company
or firm;

(2) specify
or clearly define the services to be rendered, the amount or extent of the
compensation, and the insured’s right to cancel or terminate the agreement, on
a form and in language prescribed by the Commissioner of Banking and Insurance;
and

(3) meet
the minimum standards set forth in the bill regarding certain descriptions of
the services rendered and of the right to cancel.

The
bill does not require a particular form of statement for the descriptions of
services rendered or of the right to cancel, but does provide sample
statements. The bill requires a notice of right to cancel be part of the
contract between the insured and the public adjuster.

This bill was pre-filed for introduction in the
2024-2025 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

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