Connecticut General Statutes 38a-724 – Employment contract required. Cancellation. Solicitation prohibition
(a) The use of an employment contract between a public adjuster and the insured shall be mandatory.
Terms Used In Connecticut General Statutes 38a-724
- Contract: A legal written agreement that becomes binding when signed.
- Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy. See Connecticut General Statutes 38a-1
- public adjuster: means any person, partnership, association, limited liability company or corporation who or which:
(1) On behalf of an insured and for monetary or other compensation or anything of value, (A) prepares, documents and submits a first-party property claim to an insurance company for loss or damage by a covered peril under a personal or commercial risk insurance policy, as defined in section 38a-663, issued by such company, or (B) negotiates, adjusts or effects the settlement of such claim. See Connecticut General Statutes 38a-723
(1) Any such contract signed on or after July 1, 2019, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured notifies the public adjuster at such public adjuster’s main office or branch office at the address shown in the contract, by certified mail, return receipt requested or, if agreed between the insured and the public adjuster, by electronic means with proof of a delivery receipt, posted or delivered not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.
(2) Any such contract signed on or after July 1, 2019, that does not display the provision as specified in subdivision (1) of this subsection shall be void ab initio.
(b) No public adjuster shall solicit an insured between the hours of eight o’clock p.m. and eight o’clock a.m. Any public adjuster employment contract that results from a public adjuster’s solicitation between such hours shall be void ab initio.