Working with Public Adjusters
The contract the PA has the insured sign appoints the PA as the agent of the insured for the purpose of making the claim and gives the PA a lien against the proceeds. The basic common law of the United States allows an agent to act for a principal. The PA therefore acts as agent for the insured, the principal under the PA contract. Basic insurance law allows the insured, at his or her option, to assign away any portion or all of the proceeds of the policy. The PA, by the assignment, steps in the shoes of the insured. As the assignee of the insured the PA is entitled to be treated with the same good faith the adjuster would give to the insured. The adjuster should meet the PA at the loss location as soon as possible after the loss, at which time they will both agree on the scope of loss. The PA should then be advised that the insurer expects the PA to present the insured’s sworn proof of loss within 60 days of the date of the loss.
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