FAPIA Challenge to Proposed Florida Public Adjuster Ethics, Conduct Rules Continued

An August 25, 2010 hearing requested by the Florida Association of Public Insurance Adjusters (“FAPIA”) on the validity of proposed regulations relating to public adjuster conduct and ethics has been continued upon request by the Florida Division of Administrative Hearings (“DOAH”).  

While the hearing has not been rescheduled, FAPIA and the respondent, the Florida Department of Financial Services’ Division of Insurance Agents and Agency Services (“Division”), have been ordered to advise DOAH on the status of the matter by September 20, 2010.

FAPIA’s rule challenge, which was joined by two individual public adjusters, was filed one week prior to a July 30 Rule Development Workshop held by the Division on amendments to proposed Rules 69B-220.051 and  69B-220.201, respectively entitled “Conduct of Public Adjusters” and “Ethical Requirements.”

In its challenge, FAPIA seeks a determination of whether the Division has exceeded its rulemaking authority in relation to both Rules, as well as whether the proposed amendments are vague or fail to establish adequate standards for the Division’s decisions.

Citing sections 624.308 and 626.878, F.S., FAPIA’s petition asserts there is nothing in the law that authorizes the Division to promulgate rules that define the terms “supplemental claim,” “reopened claim” or “solicitation,” or to regulate various aspects of how public adjusters may communicate with claimants.  Calling sections of both Rules “arbitrary” and “capricious,” FAPIA’s petition further attacks the proposed Rules as they relate to the claims adjusting process, as well as their related contracts and compensation terms.

Colodny Fass will continue to monitor this issue and provide updates as they become available. 

To view a summary of the aforementioned Rule Development Workshop, click here.