DATE: April 27, 2026
TO: All Public Adjusters
RE: Requirements for Consumer Cancellation of Public Adjuster Contracts
This bulletin is to advise that public adjusters may not require, or add provisions in their contracts that require, more onerous burdens upon consumers who wish to cancel their contracts within the allotted time. Public adjusters may not require consumers to use certified mail or other more onerous means than the statute allows in order to cancel their public adjuster contract.
Maryland Insurance Article § 10-411(h)(1) requires that all public adjuster contracts contain a statement that “the insured has the right to rescind or cancel the contract within 10 business days after the date the contract was signed." Section 10-411(h)(2) further states that “the notice of rescission or cancellation shall be in writing and mailed or delivered to the public adjuster at the address stated in the contract within the time period specified..." The inclusion of this statement is mandatory under this sub-section. The statute does not permit public adjusters to vary this language. Section 10-411(h)(2) does not provide for the addition or deletion of verbiage, including the addition of verbiage to limit the specific means that consumers may use to provide the written notification of cancellation.
As noted above, the statutory language says the notice “shall be in writing and mailed or delivered…" The Administration has determined that a consumer cannot be limited to one particular method of delivery in order to provide notification to cancel a contract, and that consumers cannot be limited to more onerous means of notice than those stated in law in order to cancel a public adjuster contract. Examples of acceptable means of delivering the written notification include, but are not limited to, delivery by US mail, a commercial common carrier, a delivery service, by hand, or by email.
It should be noted that public adjusters who, by contract or other means, attempt to require consumers to use more onerous methods of contract cancellation notice than required by statute, may face administrative action from the Administration, as the Administration views this as a violation. Maryland Insurance Article §10-410(a) gives the Commissioner the ability to administer disciplinary action against public adjusters who violate the Insurance Article.
Please direct all inquiries regarding this bulletin to the Producer Enforcement Unit's Public Adjuster Compliance Information Line at 410-468-2301.
MARIE GRANT
INSURANCE COMMISSIONER
BY:
Signature on OriginalROBERT GUYNN
ASSOCIATE COMMISSIONER
FRAUD & ENFORCEMENT
