402-D:11 Bond or Letter of Credit.
I. Prior to issuance of a license as a public adjuster, the applicant shall maintain in force evidence of financial responsibility through one of the following:
(a) A surety bond executed and issued by an insurer authorized to issue surety bonds in this state, which bond:
(1) Shall be in the amount of at least $20,000;
(2) Shall be in favor of this state and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in his or her capacity as a public adjuster; and
(3) Shall not be terminated unless at least 30 days prior written notice has been filed with the commissioner and given to the licensee.
(b) An irrevocable letter of credit issued by a qualified financial institution, which letter of credit:
(1) Shall be in the sum of at least $20,000; and
(2) Shall be to an account to the commissioner and subject to lawful levy of execution by any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, fraudulent acts, or unfair practices in his or her capacity as a public adjuster.
II. The issuer of such evidence of financial responsibility shall notify the commissioner upon termination of such policy, bond or letter of credit, unless the public adjuster replaces this evidence of financial responsibility and has presented the evidence of such replacement to the existing issue or such instrument.
III. The commissioner may ask for the evidence of such financial responsibility at any time the commissioner deems relevant.
IV. The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes impaired.
Source. 2006, 9:1, eff. May 2, 2006.