Tennessee § 56-6-913 - Fees charged by public adjuster — Commissions, service fees or other valuable consideration — Fee, retainer, compensation, deposit, or other thing of value, prior to settlement of a claim.

§ 56-6-913. Fees charged by public adjuster — Commissions, service fees or other valuable consideration — Fee, retainer, compensation, deposit, or other thing of value, prior to settlement of a claim.

A public adjuster may charge the insured a reasonable fee. If a contract between the public adjuster and the insured is formed before the insurance carrier has made an offer of settlement, then the public adjuster may not charge a fee that is greater than fifteen percent (15%) of the total proceeds of the insurance settlement. If a contract between the public adjuster and the insured is formed after the insurance carrier has made an offer of settlement, then the public adjuster may not charge any more than twenty-five percent (25%) of the difference between the insurance company's last offer to the insured prior to the public adjuster contract with that insured and the last offer after the public adjuster entered a contract with the insured and negotiated, if any, additional settlement proceeds. If the insured has obtained a home mortgage in the amount of one hundred percent (100%) of the appraised value of the home, then a public adjuster may charge a fee not to exceed ten percent (10%) of the total proceeds of an insurance settlement that is a total loss of the home, which shall be deemed to be a policy limit payment, occurring during a catastrophic disaster within the first twelve (12) months of the term of the home mortgage. This limitation applies regardless of when a contract is entered into between the public adjuster and the insured; provided, however, that a public adjuster shall charge no fee on any advance payment prior to the contract between the insured and the public adjuster to the insured. Nothing in this subsection (a) prohibits a public adjuster from charging a variation of fees, so long as those fees do not exceed the amounts prescribed in this subsection (a). This subsection (a) shall not apply to commercial insurance. A public adjuster shall not pay a commission, service fee or other valuable consideration to a person for investigating, resolving or working in connection with, claims in this state, if that person is required to be licensed under this part and is not so licensed. A public adjuster shall not accept a commission, service fee or other valuable consideration for investigating or settling claims in this state, if the adjuster is required to be licensed under this part and is not so licensed. No public adjuster shall require, demand or accept any fee, retainer, compensation, deposit, or other thing of value, prior to settlement of a claim. Acts 2006, ch. 997, § 14.