When can a public adjuster legally charge a fee for services in New Jersey?

A public adjuster can legally charge a fee for services in New Jersey when there is a signed contract with the policyholder. This is crucial because the contract outlines the terms of the engagement, including the fee structure, and provides necessary legal protection for both parties. The contract must comply with state regulations, ensuring that the policyholder is fully informed of the fees they are agreeing to pay for the adjuster’s services.

Without a signed contract, a public adjuster does not have the legal authority to charge a fee, which underscores the importance of formalizing the relationship through a written agreement. This practice not only promotes transparency but also ensures that the adjuster and the policyholder are in mutual agreement regarding the scope of work and fees involved. Proper documentation is key in legal and financial dealings in the insurance sector, reinforcing the necessity of having a signed agreement before any fees can be charged.