SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 991

STATE OF NEW JERSEY

DATED: MAY 2, 1996

      The Senate Commerce Committee reports favorably Senate Bill No. 991.

      This bill amends and supplements the "Public Adjusters' Licensing Act," P.L.1993, c.66 (C.17:22B-1 et seq.), with respect to certain prohibited acts and practices. It requires that a misrepresentation of fact by a public adjuster must be material for the misrepresentation to be considered a violation of the act. Current law prohibits a public adjuster from entering into an agreement with an insured to negotiate or settle claims between the hours of six p.m. and eight a.m. during the 24 hours after the loss has occurred. This bill changes that prohibition so that it only applies to the soliciting of an agreement by a public adjuster during those times. Additionally, the bill makes it a violation of the act for a person acting as a public adjuster who is not so licensed, a licensed insurance producer or an insurance company to induce cancellation of a duly executed written memorandum between an insured and a public adjuster.