Home insurance claims: What you need to know about public insurance adjusters

Interesting and informative article about public adjusters from insurancequotes.com, please read in full at http://www.insurancequotes.com/public-insurance-adjusters/

Clarification on Public Adjusters, Contractors, and Conflict of Interest:

Legislation passed in SB 408 (Chapter 2011-39, Laws of Florida) requires a licensed contractor to be licensed as a public adjuster in order to adjust a claim on behalf of the insured (effective January 1, 2012). The legislation states in ss. 626.854(16), F.S., that a licensed contractor or subcontractor is prohibited from adjusting a claim on behalf of an insured with regard to residential property insurance policies and condominium unit owner policies if such contractor or subcontractor is not a licensed public adjuster.

A person licensed as both a public adjuster under Chapter 626 and contractor under Chapter 489 may not serve in both capacities for the same loss. Section 626.8795, Florida Statutes, prohibits a public adjuster from participating “directly or indirectly, in the reconstruction, repair, or restoration of damaged property that is the Page 7 of 23subject of a claim adjusted by the licensee.” Further, a public adjuster “may not engage in any other activities that may be reasonably construed as a conflict of interest, including soliciting or accepting any remuneration from, of any kind or nature, directly or indirectly; and may not have a financial interest in any salvage, repair, or any other business entity that obtains business in connection with any claim that the public adjuster has a contract or an agreement to adjust.

LIENS:
The Florida Bar has recently made it clear that if a public adjuster files a claim of lien against a customer on their behalf or on behalf of their adjusting firm, which is a fictitious entity requiring representation by a lawyer, it would be considered engaging in the unlicensed practice of law. There is no statutory authority to Page 11 of 23authorize the conduct as Section 713.03, Florida Statutes, creates liens rights in favor of numerous occupations and professions, but fails to include public insurance adjusters. Any public adjuster that engages in this type of activity is subject to disciplinary action by the Florida Bar and the Florida Department of Financial Services if a violation of the Florida Insurance Code is committed.

Public Adjuster License Needed To Assist With Claims

Sometimes contractors attempt to help victims of disasters by offering assistance with their insurance claim. If they do so they may illegally be engaging in the practice of public adjusting without being properly licensed by the Department of Financial Services.

The definition of a public adjuster, as explained in Section 626.854, Florida Statutes, is any person, except an attorney, who, for money or any other thing of value (which would include securing a contract for repairs):

• Prepares, completes or files an insurance claim form for an insured
• Aids in any manner on behalf of an insured in negotiating for or effecting the settlement of a claim
• Advertises or solicits for employment as an adjuster of such claims

If you are acting as a public adjuster in any manner by negotiating or effecting the settlement of an insurance claim on behalf of an insured and you are performing any of these services for money, commission or anything of value without being licensed as a public adjuster (Section 626.854, Florida Statutes), you could be subject to arrest and may be charged with a third-degree felony as provided by Section 626.8738, Florida Statutes.

If you should have any questions about what activities constitute acting as a public adjuster, please contact the Department of Financial Services at 850-413-3136 or through its website, MyFloridaCFO.com.