Section 1606 - Revocation(a) Grounds for fines, suspensions or revocations.-- Committing any of the following acts shall be grounds for fine, suspension or revocation of a public adjuster's license:
(1) Material misrepresentation of the terms and effect of any insurance contract.(2) Engaging in, or attempting to engage in, any fraudulent or misleading conduct with respect to a claim or loss that the licensee is adjusting. Misleading conduct shall not be considered a felony unless the conduct constitutes fraud.(3) Misrepresentation of the services offered or the fees or commission to be charged.(4) Conviction by any court of or a plea of nolo contendere to a felony under the laws of this Commonwealth, any other state, the United States or any territory or foreign country.(5) Misappropriation, conversion to his own use or improper withholding of moneys held on behalf of another party to the contract.(6) Paying or causing to be paid any commission or any other compensation or thing of value whatsoever to any agent, broker, attorney, partner, clerk, servant, employee or any other person, whosoever hired by or employed by or with any insured named in any policy of insurance as an inducement or solicitation to influence the contracting of services for the services of public adjuster with any insured. A public adjuster may utilize the services of any person authorized by the insurer to assist in connection with an insurance claim: Provided, That said services must not conflict with the services required to be rendered by a public adjuster.
(7) Receiving, directly or indirectly, any compensation, commission or thing of value or profit from any person, partnership, association or corporation engaged or interested in the business of salvage, repair, replacement, restoration, renovation or demolition of damaged property, real or personal, unless such compensation, commission or thing of value or profit is disclosed to the insured and agreed to in the contract.(9) Closing of a licensee's office for a period in excess of 30 days, unless granted permission by the Insurance Commissioner to close the office for a longer period.(10) Violation of any provision of this act or any rule or regulation promulgated, published and adopted thereunder.(11) Making a material misstatement in the application for any such license.(12) The commission of fraudulent practices.(13) Demonstrating, in the judgment of the Insurance Commissioner, his incompetency or untrustworthiness to transact the business of a public adjuster.(14) Having a public adjuster license or other professional license, or its equivalent, denied, suspended or revoked by a governmental entity or self-regulating professional association.(15) Failing to comply with an administrative or court order imposing a child support obligation.(16) Failing to pay State income tax or comply with any administrative or court order directing the payment of State income tax.(17) Committing a misdemeanor that involves the misuse or theft of money or property belonging to another person.(18) Failing to notify the department of a change of address within 30 days.(19) Soliciting business during the progress of a loss- producing occurrence such as a fire, tornado, severe storm or other catastrophe where the immediate safety and security of persons and property is paramount. For purposes of this paragraph, it shall be presumed that the loss-producing occurrence is still in progress while emergency responders are present at the scene, unless the emergency responders have determined that the emergency status of the event has ended.(20) Prohibiting communication between the insurer and the insured.(21) Failing to notify the insured's insurer within two calendar days of entering into a contract.(b) Civil penalty.--Regardless of whether the public adjuster was licensed or not, the Insurance Commissioner may, at his discretion, in cases warranting such action, impose a civil penalty of not more than $5,000 for each and every violation of this act.(c) Notice and hearing.--Before the Insurance Commissioner shall take any action as above set forth, he shall give written notice to the person accused of violating the law, stating specifically the nature of such alleged violation and fixing a time and place, at least ten days thereafter, when a hearing of the matter shall be held. After such hearing or upon failure of the accused to appear at such a hearing, the Insurance Commissioner shall impose such of the above penalties as he deems advisable. When the Insurance Commissioner shall have taken any actions as above set forth, the party aggrieved may appeal therefrom to the Commonwealth Court.
(d) Adjusters responsible for conduct of employees.--Any public adjuster employing, or using the services of, any person to solicit business shall be held fully responsible for the conduct of that person in connection with business dealings, including, but not limited to, making certain that such person has a valid license as a public adjuster .Amended by P.L. 209 2012 No. 21, § 5, eff. 9/30/2012.1983, Dec. 20, P.L. 260, No. 72, § 6, imd. effective.