Residential Public Adjuster Contract FAQ
- May I submit the contract under my adjusting firm's name, instead of my own name?
Yes; however, the adjusting firm must be registered with DIFS.
- If my firm is providing adjusting services, do I also have to include my own individual name?
No. Individual adjusters should use their personal name; adjusting firms should use only the firm name.
- If my firm or I provide adjusting services on only part of the coverages listed under the "Scope of Contract," may I charge a fee based on the entire amount paid by the insurer in settlement of the loss?
Adjusters may charge only on the payments made under the coverages marked on the contract for which the public adjusting contract applies. For example, if only the building and contents coverages have been marked on the contract as the coverages for which the public adjuster is being hired, the public adjuster may not charge a fee on payments made under the loss of use or other coverages not marked. In no event may the adjuster collect more than 10% of the total amount paid by the insurer in settlement of the loss.
- What payment arrangements are permitted under the Residential Public Adjuster Contract?
Adjusters and their clients are free to contract with one another for any type of fee arrangement, as long as the total amount paid to the adjuster does not exceed 10% of amounts paid in settlement of the loss by the insurer(s) related to coverage(s) authorized under the Scope of Contract.
- May I add my logo and/or contact information to the Residential Public Adjuster Contract?
Yes, at the top of the first page, in or above the boxes provided.
- May I handwrite my contact information on the Residential Public Adjuster Contract?
No. Adjusters who wish to provide their contact information must do so by typing or electronically inserting it at the top of first page of the Residential Public Adjuster Contract in the boxes provided.
- May I change the font size or formatting of the Residential Public Adjuster Contract?
No. Michigan law specifies the font size and formatting that must be used.
- May I add any language to the Residential Public Adjuster Contract?
The Residential Public Adjuster Contract form itself cannot be altered. The only language that can be added to the Contract form is the information necessary to fill in the blanks on the form and any attached alternative fee agreement that meets the requirements of the form. If an alternative fee agreement is attached to the form, it may not allow the adjuster to collect more than 10% of the total amount paid by the insurer in settlement of the loss.
- What are the address requirements for the Residential Public Adjuster Contract?
Adjusters cannot use a P.O. Box; the adjuster’s address must be a street address. The address on the form must match the business address listed on the adjuster’s application or license record on file with DIFS.
The answers provided are not meant to be a substitute for legal advice.