What is one prohibition placed on public adjusters regarding compensation?

Public adjusters are specifically prohibited from being compensated based on deductibles. This prohibition exists to ensure that public adjusters act impartially and in the best interests of their clients, the claimants. When compensation is tied to deductibles, it could create a conflict of interest where the adjuster might encourage claimants to settle for less than what they are entitled to in order to increase their own compensation. By restricting compensation models in this way, the regulations help maintain ethical standards in the industry and protect claimants from potentially exploitative practices.

Understanding this prohibition is essential for public adjusters, as it reinforces the importance of transparent and fair compensation practices, ultimately fostering trust and credibility in the public adjusting profession.