In these consolidated matters, appellants are public adjusters who challenge final agency decisions by the commissioner of the Department of Banking and Insurance, finding appellants' contracts violated the New Jersey Public Adjuster's Licensing Act (PALA), N.J.S.A. 17:22B-1 to -20 and regulations enacted by the commissioner governing the conduct of public adjusters. N.J.A.C. 11:1-37.1. The commissioner found appellants violated PALA because their contracts did not comply with N.J.A.C. 11:1-37.13(b)(5), which requires every public adjuster contract include "(i) [t]he procedures to be followed by the insured if [they] seek[] to cancel the contract, including any requirement for a written notice; [and] (ii) [t]he rights and obligations of the parties if the contract is cancelled at any time[.]" The commissioner found appellants violated these regulations because their contracts did not contain language permitting consumers to cancel their contracts at any time.
The court reviewed PALA's legislative history and found no evidence the Legislature intended public adjuster contracts contain provisions for cancellation at any time. The plain language of the regulations only requires that public adjuster contracts set forth the procedures to be followed in the event of a cancellation and advise consumers of their rights in the event of cancellation. Therefore, the commissioner misinterpreted the regulations, and her findings were ultra vires of her authority under PALA. As a result, the court reversed the findings appellants violated N.J.A.C. 11:1-37.13(b)(5)(i) and (ii) and remanded for a recalculation of the penalties and costs imposed on appellants.