*(a) The use of an employment contract between a public adjuster and the insured shall be mandatory.

(1) Any such contract signed on or after October 1, 2013, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured notifies the public adjuster at such public adjuster's main office or branch office at the address shown in the contract, by certified mail, return receipt requested, posted not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.

(2) Any such contract signed on or after October 1, 2013, that does not display the provision as specified in subdivision (1) of this subsection shall be void ab initio.

(b) No public adjuster shall solicit an insured between the hours of eight o'clock p.m. and eight o'clock a.m. Any public adjuster employment contract that results from a public adjuster's solicitation between such hours shall be void ab initio.

(P.A. 90-243, S. 169; P.A. 10-79, S. 2; P.A. 13-138, S. 3; P.A. 14-175, S. 4.)

*Note: On and after October 1, 2019, subsection (a) of this section, as amended by section 17 of public act 18-158, is to read as follows:

“(a) The use of an employment contract between a public adjuster and the insured shall be mandatory.

(1) Any such contract signed on or after October 1, 2019, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured notifies the public adjuster at such public adjuster's main office or branch office at the address shown in the contract, by certified mail, return receipt requested, or, if agreed between the insured and the public adjuster, by electronic means with proof of a delivery receipt, posted or delivered not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.

(2) Any such contract signed on or after October 1, 2019, that does not display the provision as specified in subdivision (1) of this subsection shall be void ab initio.”

(P.A. 90-243, S. 169; P.A. 10-79, S. 2; P.A. 13-138, S. 3; P.A. 14-175, S. 4; P.A. 18-158, S. 17.)

History: P.A. 10-79 designated existing provisions as Subsec. (a) and amended same to replace “client” with “insured” and make technical changes, and added Subsec. (b) re solicitation prohibition; P.A. 13-138 amended Subsec. (a) to designate existing provision re contract cancellation as Subdiv. (1) and amend same to add provision re prominent display of cancellation provision, replace “second calendar day” with “fourth calendar day” and replace “Tuesday immediately following” with “Thursday immediately following”, and to add Subdiv. (2) re penalty for failure to display cancellation provision; P.A. 14-175 amended Subsec. (b) to add provision re contract that results from solicitation during prohibited hours to be void ab initio; P.A. 18-158 amended Subsec. (a) by substituting “2019” for “2013” and adding provisions re notice by electronic means and proof of delivery, effective October 1, 2019.