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Kentucky Revised Statute (KRS 304.9-020)
(9) "Independent adjuster" means a person who: (a) Is an independent contractor, an employee of an independent contractor, or for tax purposes is treated as an independent contractor under Subtitle C of the Internal Revenue Code, 26 U.S.C. secs. 3101 et seq.; (b) Is compensated by an insurer or self-insurer; and (c) Investigates, negotiates, or settles property, casualty, or workers' compensation claims for insurers or self-insurers;
(20) "Public adjuster" means any person who, for compensation or anything of value: (a) Acts on behalf of an insured or aids an insured, solely in relation to first-party claims arising under insurance contracts that insure the real or personal property of the insured, in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an insurance contract; (b) Advertises for employment as a public adjuster of insurance claims, solicits business or represents himself, herself, or itself to the public as a public adjuster of first-party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property; or (c) Directly or indirectly solicits business, investigates or adjusts losses, advises an insured about first-party claims for losses or damages arising out of policies of insurance that insure real or personal property for another person, or engages in the business of adjusting losses or damages covered by an insurance policy for the insured;
(26) "Staff adjuster" means an individual who is an employee of an insurer who investigates, negotiates, or settles property, casualty, or workers' compensation claims on behalf of his or her employer;
Kentucky Revised Statute (KRS 304.9-080)
(2) Except as provided in KRS 304.9-430, no individual or business entity shall in this state be, act as, or hold himself, herself, or itself out as an adjuster unless then licensed as an adjuster.
Kentucky Revised Statute (KRS 304.9-430)
(1) Except as provided in this section, no person shall in this state act as or hold himself, herself, or itself out to be an independent, staff, or public adjuster unless then licensed by the department as an independent, staff, or public adjuster.
(11) Notwithstanding any other provision of this subtitle, a license as a public adjuster shall not be required of the following:
(a) An attorney licensed to practice law in Kentucky, when acting in his or her professional capacity as an attorney;
(b) A person who negotiates or settles claims arising under a life or health insurance policy or an annuity contract;
(c) A person employed only for the purpose of obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts;
(d) A licensed health care provider or its employee who prepares or files a health claim form on behalf of a patient; or
(e) An employee or agent of an insurer adjusting claims relating to food spoilage with respect to residential property insurance in which the amount of coverage for the applicable type of loss is contractually limited to one thousand dollars ($1,000) or less.
Kentucky Revised Statute (KRS 304.9-433 (6))
Property insurance policies obligate the insured to present a claim to his or her insurance company for consideration. Three (3) types of adjusters may be involved in the claim process as follows:
1. “Staff adjuster” means an insurance adjuster who is an employee of an insurance company who represents the interest of the insurance company and who is paid by the insurance company. A staff adjuster shall not charge a fee to the insured;
2. “Independent adjuster” means an insurance adjuster who is hired on a contract basis by an insurance company to represent the insurance company’s interest in the settlement of the claims and who is paid by the insurance company. An independent adjuster shall not charge a fee to the insured; and
3. “Public adjuster” means an insurance adjuster who does not work for any insurance company. A public adjuster works for the insured to assist in the preparation, presentation, and settlement of the claim, and the insured hires a public adjuster by signing a contract agreeing to pay him or her a fee or commission based on a percentage of the settlement or other method of payment.
The insured is not required to hire a public adjuster to help the insured meet his or her obligations under the policy, but has the right to hire a public adjuster. The insured has the right to initiate direct communications with the insured’s attorney, the insurer, the insurer’s adjuster, the insurer’s attorney, and any other person regarding the settlement of the insured’s claim. The public adjuster shall not be a representative or employee of the insurer. The salary, fee, or other consideration paid to the public adjuster is the obligation of the insured, not the insurer.
Kentucky Revised Statute (KRS 304.9-436)
(1) An authorized insurer shall not do business in Kentucky with an adjuster who is unlicensed in violation of KRS 304.9-080 and 304.9-430. This section shall not apply to transactions between an authorized insurer and persons providing adjusting services pursuant to KRS 304.9-430(10), (11), (12), and (14).
(Note: KRS 304.9-430(10), (11), (12), and (14) list the exceptions to the licensing requirement. (11) List the exceptions for the Public Adjuster license requirement, while (10), (12) and (14) list exceptions for an independent and staff adjuster license.)
Kentucky Revised Statute (KRS 367.628)
(1) A roofing contractor shall not represent, negotiate, or advertise to represent or negotiate on behalf of an owner of residential real estate on any insurance claim in connection with the repair or replacement of a roof system. Nothing in this subsection shall be construed to prohibit a roofing contractor from:
(a) Providing an estimate for repair, replacement, construction, or reconstruction of the property to the owner of residential real estate; or
(b) Conferring with an insurance company's representative about damage to the property after a claim has been submitted by the owner of residential real estate.
This subsection shall not apply to a public adjuster licensed under Subtitle 9 of KRS Chapter 304.
(2) Where the goods or services are expected to be paid from the proceeds of a property and casualty policy, a roofing contractor or person representing a roofing contractor shall not:
(a) Cause damage to any part of a roof system in order to increase the scope of repair or replacement, or encourage a person to cause damage to any part of a roof system in order to secure a contract for repair or replacement;
(b) Offer to pay or rebate all or any portion of an insurance deductible or claims proceeds as an inducement to the sale of goods or services related to a residential roof contract;
(c) Grant an allowance or discount against the fee to be charged under the contract; or
(d) Pay or offer to pay the owner of residential real estate or his or her representative for whom services have been or will be performed pursuant to KRS 367.620 to 367.628, for any reason, any form of compensation in excess of one hundred dollars ($100), including but not limited to a:
1. Bonus;
2. Coupon;
3. Credit;
4. Gift;
5. Prize;
6. Referral fee; or
7. Any other item having a monetary value.
Kentucky Administrative Regulation (806 KAR 9:030)
Section 1. (1) An independent, staff, or public adjuster's license issued to an applicant pursuant to the provisions of the Insurance Code shall not authorize representing the interest of both insurer and the insured or claimant. A licensee shall not represent the interest of both insurer and the insured or claimant.
(2) When the application is filed, an applicant shall elect to act solely on behalf of:
(a) Insurers; or
(b) Persons claiming benefits under insurance or annuity contracts.
(3) A licensee shall to act in a fiduciary capacity to his principal.
(4) The commissioner shall not issue a license to a public adjuster until the prospective licensee posts a bond or irrevocable letter of credit in the amount of $20,000 and in accordance with 806 KAR 9:210.