Citizens Claims Handling Task Force Public Adjuster and Property Appraiser Workshop

On November 16, 2007, this office attended and provided comments at a public workshop by The Task Force on Citizens Property Insurance Claims Handling and Resolution regarding proposed legislation pertaining to Public Adjusters and Property Loss Insurance Appraisers. 

The purpose of this workshop was to avail interested parties of the opportunity to share their recommendations.   Florida Insurance Consumer Advocate General Bob Milligan provided brief introductory remarks and recognized the first presenter. 

Property Loss Insurance Appraisers

Representatives from the Florida Insurance Council provided general recommendations, stating that language should be included that would achieve the goal of licensing umpires.  The Task Force members expressed some concern that this could impede the ability of a judge to select impartial umpires in certain instances.  They also suggested a provision that would toll the onset of litigation to allow the appraisal/mediation process to move forward.  They also sought clarification in statute regarding the case of Muckenfuss v. Hanover Insurance Company, a Middle District of Florida Federal case involving insurer rights in the appraisal process.

A representative from Enservio Insurance Company noted that the proposed law should include a provision that distinguishes and clarifies real versus personal property.

Representatives from Pennington, Moore, Wilkinson, Bell & Dunbar, PA, suggested that the law be amended allow both parties to waive the detailed written requirements when an umpire is not used.  They stated this change would save time and expense.  They also suggested that attorney fee reform provisions be included in the proposed legislation.

Next, representatives from the Windstorm Insurance Network provided background information and an overview of their organization.  This organization provides information regarding windstorm issues such as a data base of umpires.

Public Adjuster Legislation

Terry Butler with the Office of the Insurance Consumer Advocate provided comments and recommended several changes to the proposed public adjuster legislation.  He suggested that there be more stringent solicitation provisions for public adjusters and that the solicitation prohibition be extended to 14 days following a major storm or event.  He also recommended a provision that would allow consumers to cancel a public adjuster contract after three business days.  Further, he suggested that the requirement that public adjuster apprentices be employed with a public adjuster be eliminated.

Next, a representative with The Baldwin Company, Property Loss Consultants, provided comments on the proposed legislation.  He was not in favor of solicitation restrictions, but provided an alternative hourly restriction (ie: only from 8 a.m. to 8 p.m.).  He also stated that public adjusters provide a service to the consumers and the industry should not be punished for a few bad actors.  Also, a representative from the Florida Association of Public Insurance Adjusters recommended that the Task Force move slowly in their recommended changes to the current law because those changes will have a major impact of how claims are handled in Florida.  He spoke in favor of limited solicitation requirements, continuing education requirements and apprenticeship provisions in the proposed legislation.

A representative from the Florida Insurance University also provided comments on the proposed legislation.  He spoke in favor of the provisions regarding experience requirements and the elimination of direct solicitation.  He also noted that the apprenticeship program is unnecessary and tends to exclude rather than include members into the profession.

Representatives from Pennington, Moore, Wilkinson, Bell & Dunbar, PA, provided proposed changes to the public adjuster proposed legislation that would require public adjusters to provide recorded statements and an examination under oath when requested by the insurer.

Public Testimony

Following the presentations from the speakers on the agenda, General Milligan recognized speakers from the public.  A representative from the American Association of Public Insurance Adjusters provided comments supporting its work with the National Association of Insurance Commissioners and the public modeling that was adopted at the national level.  For example, he was supportive of capping fees at 10 percent of the entire claim.  He also stated that the existing laws are sufficient in provided safeguards to consumers.

A representative from Colodny Fass provided remarks on the proposed legislation.  He suggested that public adjuster fees should be limited to 10 percent of the value that the public adjuster secures for the insured.  He also spoke in favor of prohibiting the door-to-door and direct telephone call solicitation and further noted that a public adjuster’s contracts should prominently display a phrase that informs -policyholders that the percentage of payment that a public adjuster receives will be deducted from the overall value of their claim.  Regarding the property appraiser proposed legislation, it was noted that the parties should jointly select an umpire from a list of Approved Umpires provided by the Office of Insurance Regulation; attorney fees should not be awarded unless the insurer wrongfully denies a policyholder’s proper and timely demand for an appraisal; and mediation should be required if available prior to appraisal.   

There being no further business before the Task Force, General Milligan concluded the workshop.

Workshop Speakers (click on a name to view his/her presentation):

 

Property Loss Insurance Appraiser Legislation

Charles “Charley” F. Dudley
Florida Insurance Council, Inc. & Floridian Partners, LLC

James M. Wander, Vice President, Enservio, Inc.
Greg Jenkins, Focus Insurance Consultancy, LLC.

Sandy Safley, Pennington, Moore, Wilkinson, Bell & Dunbar, PA
Lisa Miller, One Eighty Consulting

Janice A. Kelly, President
John Voelpel, Windstorm Insurance Network

 

Public Adjuster Legislation

Terry Butler, Senior Attorney
Office of the Florida Insurance Consumer Advocate
Task Force on Citizens Claims Handling and Resolution

Wes Baldwin
The Baldwin Company, Inc.
Property Loss Consultants
Charlotte, North Carolina

Dr. Michael Birzon
Florida Insurance University, a partner with the University of Central Florida

Mark Boardman
Florida Association of Public Insurance Adjusters

Sandy Safley, Pennington, Moore, Wilkinson, Bell & Dunbar, PA
Lisa Miller, One Eighty Consulting

Charles “Charley” F. Dudley
Florida Insurance Council, Inc. & Floridian Partners, LLC 

 

Proposed Public Adjuster Legislation

Proposed Appraiser Licensing Legislation

 

Should you have any questions or comments, please do not hesitate to contact this office.