The public adjuster contract was unenforceable due to the Public Adjuster failing to comply with the Ill. Act Ill. Rev. Stat, 1977, Ch. 29, par. 81 which provides that the policyholder has the right to avoid the contract (if made within five days of a loss), by giving written notice within 10 days of the contract date. The Public Adjuster failed to provide the policyholder with a written acknowledgment of the policyholder's right to cancel and was unable to recover ten percent of the paid claim as provided in the contract, but was able to assert a claim based on reasonable value of services rendered at the policyholder's request in adjusting the claim:
Willis v. Ohio Casualty Co., Kreiler, 428 N.E. 1061, 1981, 101 Ill. App. 3d 1099, 57 Ill. Dec. 381.
The court ruled that an insurance broker is entitled to one half of the fee received by a licensed public adjuster in connection with adjustment of the loss when that broker is the insurance broker of record for that insurance policy under which claim is made, and when that broker has such an agreement with the public adjuster, to be paid for referral:
Richman v. Federated Adjustment Co., 521 N.Y.S. 2d 484, 1987, 134 A.D. 2d 582, 576 N.Y.S. 2d 160, 161, 1987.
Because the insurance company hired an independent adjuster (private insurance company adjuster) to adjust the policyholder's fire loss claim did not create a fiduciary relationship between the policyholder and that adjuster. Where there is a dispute as to coverage of the policyholder's claim, retention of an independent adjuster by the insurance company is not for the benefit of the policyholder:
Thompson v. Cannon, 274 Cal. Rptr. 608, 224 C.A. 3d 1413, Cal. App. 4 Dist., 1990.
The policyholder sued an independent adjuster for a breach of fiduciary duty. The court held that the adjuster had a fiduciary duty to the insurance company, not to the policyholder:
Thompson v. Cannon 224 CA Ap3 1413 274 CaR 608, 1990.
