Florida Public Adjusters Face Tougher Regulation

By Michael Birzon

Following the 2004-2005 Florida Hurricane season, two important events occurred. First, the number of Florida public adjusters, both resident and non-resident grew substantially. Second, established public adjuster firms became concerned that their market share was diluted by the increased competition.

Following a lobbying effort by FAPIA (Florida Association of Public Insurance Adjusters), changes in the licensing laws for public adjusters were made. In addition, new laws concerning customer contact, fees and contracts were also passed. The intended effect of the laws were to protect the public and protect the market share of established public adjuster firms.

Some of these changes became effective October 1, 2008. Additional changes regarding an apprenticeship program will take effect January 1, 2009.

CUSTOMER CONTACT

Public adjusters are prohibited from contacting an insured or claimant until 48 hours after the occurrence of an event that may be the subject of a claim under a policy;

Public adjusters may not solicit an insured or claimant except on Monday through Saturday and only between the hours of 8 a.m. and 8 p.m.

FEES

A public adjuster may not charge a fee unless a written contract was executed prior to the payment of a claim;

Public adjusters are prohibited from charging more than 20 percent of the insurance claims payment on non-hurricane claims and 10 percent of the insurance claims payment on hurricane claims for claims made during the first year after the declaration of the emergency. These fee caps apply only to residential property insurance policies and condominium association policies as defined in s. 718.111(11);

There is no fee cap on re-opened or supplemental hurricane claims; however, the fee cannot be based on any payments made by the insurer to the insured prior to the time of the public adjuster contract.

CONTRACT

Insureds or claimants will have 5 business days after the date on which the contract is executed to cancel a public adjuster's contract during a state of emergency declared by the Governor; insureds or claimants have 3 business days to cancel a contract as to claims involving non-emergencies;

Public adjuster contracts must be in writing and must display an anti-fraud statement.

For information on Florida Adjuster Licensing or Continuing Education, check the University of Central Florida/Florida Insurance University website at: http://www.ce.ucf.edu/insurance

ABOUT THE AUTHOR

Dr. Michael Birzon is an attorney and adjunct professor with Florida Insurance University/University of Central Florida. Dr. Birzon has litigated claims for over 30 years and is the author of the Accredited Claims Adjuster Designation approved by the State of Florida. You may contact Dr. Birzon at (407) 927-1235 or email at: flainsu@mail.ucf.edu

http://www.ce.ucf.edu/insurance