Primary adjuster.

(1) Each business location established by an adjuster, an adjusting firm, a corporation, or an association must designate with the department a primary adjuster who is licensed and appointed to adjust the insurance claims adjusted by the business location.

(2) An adjusting firm and each of its branch firms shall designate a primary adjuster and file with the department, at the department’s designated website, the name and license number of such primary adjuster and the physical address of the adjusting firm or branch firm location where he or she is the primary adjuster. The designation of the primary adjuster may be changed at the option of the adjusting firm. Any such change is effective upon notification to the department. Notice of change must be provided to the department within 30 days after such change.

(3) For purposes of this section, a “primary adjuster” is the licensed adjuster who is responsible for the supervision of all individuals within an adjusting firm location who act in the capacity of an adjuster as defined in this chapter. An adjuster may be designated as a primary adjuster for more than one adjusting firm location provided no person engages in activity requiring licensure as an adjuster at any location when an adjuster is not physically present.

(4) For purposes of this section, an “adjusting firm” is a location where an independent or public adjuster is engaged in the business of insurance.

(5) The department may suspend or revoke the license of the primary adjuster if the adjusting firm employs or contracts any person who has had a license denied or any person whose license is currently suspended or revoked. However, if a person has been denied a license for failure to pass a required examination, he or she may be employed or contracted to perform clerical or administrative functions for which licensure is not required.

(6) The primary adjuster in an adjusting firm is accountable for misconduct or violations of this code committed by the primary adjuster or by any other person under his or her direct supervision while acting on behalf of the adjusting firm. This section does not render a primary adjuster criminally liable for an act unless the primary adjuster personally committed the act or knew or should have known of the act and of the facts constituting a violation of this code.

(7) The department may suspend or revoke the license of any adjuster who is employed or contracted by a person whose license is currently suspended or revoked.

(8) An adjusting firm location may not conduct the business of insurance unless a primary adjuster is designated and provides services to the firm at all times. If the primary adjuster designated with the department ends his or her affiliation with the firm for any reason and if the firm fails to designate another primary adjuster, as required in subsection (2), within 90 days, the firm license automatically expires on the 91st day after the date the designated primary adjuster ended his or her affiliation with the firm.

(9) Any adjusting firm may determine a person’s current licensure status by submitting an appointment request within 5 working days after the date an adjuster is hired. If the department subsequently notifies the adjusting firm that its appointee’s license is currently suspended, revoked, or has been denied, the license of the primary adjuster may not be revoked or suspended if the unlicensed person is immediately dismissed from employment as an adjuster with the firm.