DEPARTMENT OF REGULATORY AGENCIES
Division of Insurance
3 ccr 702-1
Administrative procedures
Amended Regulation 1-1-2
PUBLIC ADJUSTER REPRESENTATION AGREEMENTS SUBJECT TO RESCISSION WITHIN 72 HOURS OF SIGNING A SETTLEMENT REPRESENTATION AGREEMENT 
Section 1	Authority
Section 2	Basis and Purpose
Section 3	Rule
Section 4	Enforcement
Section 5	Severability
Section 6	Effective Date
Section 7	History
Section 1	Authority
This regulation is promulgated under §§ 10-1-109 and 10-2-417, C.R.S.
Section 2	Basis and Purpose
The purpose of this regulation is to prevent unfair settlements of claims by providing a 72 hour “cooling off” period for insureds suffering casualty losses, during which, for the immediate 72 hours following execution of a settlement representation agreement shall be subject to rescission by an insured, except as specifically exempted in this regulation.
Section 3	Rule
Any contract or other form of agreement for representation in an insurer property and casualty loss or claim shall be rescindable against public adjusters and the insurer for such loss at the election of the insured, provided the insured exercises his rights of rescission in writing addressed to the insurer and the public adjuster and puts the same, postage prepaid, in the United States Mail within 72 hours of signing a settlement representation agreement.  All public adjusters taking a representative agreement to resolve a property or casualty loss on behalf of an insured shall give to the insured written notice of and direction as to the ability to exercise his rights of rescission.
Section 4	Enforcement
Noncompliance with this regulation may result, after notice and hearing, in the imposition of any lawful sanction including the imposition of fines and suspension or revocation of license.
Section 5	Severability
If any provision of this regulation or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of the regulation and the application of such provision shall not be affected thereby.

Section 6	Effective Date
This regulation is effective on December 1, 2007.
Section 7	History
Originally issued as Regulation 76-5, effective January 14, 1977.
Re-codified as Regulation 1-1-2, effective June 1, 1992.
Regulation amended, effective October 1, 1998.
Regulation amended, effective December 1, 2007