Title 31A Chapter 26 Part 4 Section 402

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Index	Utah Code
Title 31A	Insurance Code
Chapter 26	Insurance Adjusters
Part 4	Public Adjusters
Section 402	Compensation. *(Effective 5/6/2026)*

Effective 5/6/2026
31A-26-402. Compensation.

(1)

Except as provided by Subsection (4), a public adjuster may receive compensation for service a public adjuster provides under this chapter consisting of:

(a)	an hourly fee;

(b)	a flat rate;

(c)	a percentage of the total amount an insurer pays to resolve a claim; or

(d)	another method of compensation.

(2)

(a)

If a person compensates a public adjuster at an hourly rate, the contract between the person and public adjuster shall state:

(i)	the hourly rate; and

(ii)	how the hourly rate applies to the hours of service the public adjuster provides to calculate the amount payable to the public adjuster.

(b)	If a person compensates a public adjuster on a flat fee basis, the contract between the person and public adjuster shall state the amount payable to the public adjuster.

(c)	If a person compensates a public adjuster on a percentage basis, the contract between the person and the public adjuster shall state the exact percentage that applies to the settlement of a claim to calculate the amount payable to the public adjuster.

(d)

If a person uses a method of calculation not described in Subsections (2)(a) through (c) to determine a public adjuster's compensation, the contract between the person and the public adjuster shall include a detailed explanation of how the person determines the amount payable to the public adjuster based on the service the public adjuster provides.

(3)

(a)	A contract between an insured and a public adjuster for compensation under this section shall state the type of initial expenses, with dollar estimates, that the insured approves to reimburse the public adjuster from the proceeds of the claim payment.

(b)	A public adjuster shall provide an itemized invoice of each expense the public adjuster incurs during the process of resolving a claim to the insured at the conclusion of a claim.

(4)

(a)

A public adjuster may not receive a compensation consisting of a percentage of the total amount an insurer pays to resolve a claim on a claim on which the insurer, not later than 72 hours after the day on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy.

(b)

Subject to Subsection (6), a public adjuster is entitled to reasonable compensation from the insured for services the public adjuster provides on behalf of the insured, based on the time spent on a claim that is subject to this Subsection (4) and expenses the public adjuster incurs, until the claim is paid or the insured receives a written commitment to pay from the insurer.

(5)

Except for the payment of compensation by the insured, a person paying proceeds of a policy of insurance or making a payment affecting an insured's rights under a policy of insurance shall:

(a)	include the insured as a payee on the payment draft or check; and

(b)	require the written signature and endorsement of the insured on the payment draft or check.

(6)

A public adjuster may not:

(a)	accept a payment that violates this section notwithstanding a written authorization that the insured gives to the public adjuster;

(b)	sign and endorse a payment draft or check on behalf of an insured;

(c)

charge, agree to, or accept as compensation or reimbursement, a payment, commission, fee, or another thing of value equal to more than:

(i)	10% for a catastrophic insurance claim settlement; or

(ii)	20% for a non-catastrophic insurance claim settlement; or

(d)	require, demand, or accept a fee, retainer, compensation, deposit, or other thing of value before the settlement of a claim.

Amended by Chapter 45, 2026 General Session

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