Kentucky Public Adjuster Bond
What is a Kentucky Public Adjuster Bond?
A Public Adjuster Bond (aka a Financial Responsibility Bond) is a type of surety bond required by the Kentucky Department of Insurance. The bond is written on Form 99-3 in the penal sum, or coverage amount of $50,000. The purpose of the surety bond is to indemnify any person financially damaged by any erroneous act or failure to act by the bonded public adjuster.
Why is a Kentucky Public Adjuster Bond Required?
The public adjuster surety bond establishes financial responsibility and ensures the public adjuster complies with applicable state codes. As a general rule, a public adjuster shall not provide services to an insured until a contract has been executed on a form approved by the Department. Furthermore, the contract between the public adjuster and the insured include a statement that the adjuster shall not give legal advice or act on behalf of any person in the negotiation or settling of a claim for bodily injury, death, or noneconomic damages; the process for rescinding the contract, including the date by which rescission of the contract by the public adjuster or insured may occur; and 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 Kentucky Department of Insurance.”
There are additional requirements on public adjusters concerning their relationship with the insured. A public adjuster is required to give the insured written notice of the insured’s rights enumerated in the Act. Additionally, the public adjuster shall ensure that: prompt notice of the claim is provided to the insurer; the property subject to a claim is available for inspection of the loss or damage by the insurer; and the insurer is given the opportunity to interview the insured directly about the loss or damage claim.
Also, a public adjuster shall not act in a manner that obstructs or prevents the insurer or its adjuster from timely conducting an inspection of the property that is the subject of the claim. The public adjuster may be present for the inspection of the property. If, after a reasonable request, the unavailability of the public adjuster would delay the timely inspection of the property, the insured must allow the insurer to have access to the property without the presence of the public adjuster.