31A-26-401. Required contracts.

426 words·~2 min read·/ut/title-31a/chapter-26/31a-26-401

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(a)A public adjuster may not, directly or indirectly, act within this state as a public adjuster without having first entered into a contract, in writing, on a form a public adjuster files with the department in accordance with Section 31A-21-201 , that the public adjuster and the insured or the insured's duly authorized representative executes in duplicate.

(b)A public adjuster shall provide a signed copy of the contract to the insured at the time of signing.

(c)A public adjuster may not use a form of contract that the public adjuster has not filed with the department.

(d)A public adjuster may not redact a compensation provision from a contract form the public adjuster files with the department.

(a)An insured may rescind a contract described in Subsection

(1)in accordance with Section 31A-26-311 .

(b)If an insured rescinds a contract, the public adjuster shall return to the insured anything of value the insured gives to the public adjuster under the terms of the contract within 15 business days after the day on which the public adjuster receives the notice of rescission.

(3)A contract described in Subsection

(1):

(a)shall include each notice and statement that the commissioner:

(i)deems necessary; and

(ii)requires by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(b)may not include a term that:

(i)allows a public adjuster to collect the public adjuster's percentage fee when money is due from an insurance company but the insurance company has not paid;

(ii)allows a public adjuster to collect the entire fee from the first check an insurance company issues instead of a percentage of each check the insurance company issues;

(iii)requires an insured to authorize an insurance company to issue a check only in the name of the public adjuster;

(iv)imposes a collection cost or a late fee; or

(v)prevents an insured from pursuing a civil remedy.

(a)A public adjuster shall provide to the insurer a notification letter, that the insured signs, authorizing the public adjuster to represent the insured's interest.

(b)After receiving the letter described in Subsection (4)(a) , an insurer shall verify with the department that the public adjuster holds a valid license.

(5)A public adjuster may not enter into a contract with an insured and collect compensation as provided in the contract without actually performing the services a licensed public adjuster customarily provides the insured.

Amended by Chapter 45 , 2026 General Session