Under what condition can a public adjuster charge a fee based on the total amount of a claim?

The correct answer is based on the necessity for transparency and agreement between the public adjuster and the policyholder. A public adjuster is permitted to charge a fee based on the total amount of a claim only when this fee structure has been expressly agreed upon before the adjustment process begins. This requirement emphasizes the importance of clear communication and mutual consent regarding the fees involved.

By ensuring that the fee is established in advance, it protects both parties and maintains ethical standards in the industry. This approach prevents misunderstandings about costs and helps build trust between the adjuster and the claimant. It aligns with regulation practices that are intended to provide safeguards for consumers when dealing with insurance claims.

Other options, such as charging based on the claim exceeding a certain dollar amount, are not inherently valid unless specified in the agreement between the parties. Similarly, considerations like multiple damages or a policyholder's request for adjustment do not automatically permit a fee based on the total claim amount unless there is prior consensus on the fee structure. Therefore, the emphasis on pre-agreement is what defines the proper circumstances for fee assessment in public adjusting.