P&CMAmedium
Under M.G.L. c. 175 §172, a public adjuster operating in Massachusetts represents which party in a first-party property loss claim and must hold what specific Division of Insurance authorization?
The insured, under a separate public adjuster license issued by DOI
BThe insurer, under a producer appointment
CEither party, with a standard producer license — no special authority required
DThe court, as a neutral mediator appointed by the Commissioner
Why this is the answer
M.G.L. c. 175 §172 establishes the public insurance adjuster license as a distinct authority issued by the Division of Insurance. A Massachusetts public adjuster represents the insured — not the insurer or the carrier's staff adjuster — in negotiating first-party property loss claims under standard fire, homeowners, and dwelling forms. The license is separate from the producer license and carries its own written examination, two years' adjusting experience, and a criminal background check. Acting as a public adjuster without the §172 license is punishable by a fine of up to $10,000 or up to 6 months' imprisonment.
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