Can public adjusters give monetary loans to clients?

Public adjusters are prohibited from giving monetary loans to clients as part of their operations. This regulation ensures that adjusters maintain a clear boundary between their professional duties and the financial interests of their clients. The rationale behind this prohibition is to prevent conflicts of interest, where a public adjuster might prioritize their personal financial gain over the best interests of the client. This restriction helps maintain ethical standards within the industry, protecting both the integrity of the adjusting profession and the rights of the policyholder.

In addition, allowing public adjusters to give loans could lead to situations where clients may feel pressured to accept certain outcomes or settlements in favor of the adjuster’s financial interests. This prohibition is established to promote fair and transparent claims handling, ensuring that public adjusters focus solely on advocating for the client's claim without any financial entanglements that could compromise their impartiality.