Florida Insurance Adjuster Bill HB 911 Signed Into Law; Effective January 1, 2018

Above:  Maria Elena Abate was recently nominated as “Insurance Defense Lawyer of the Year” by the Florida Insurance Fraud Education Committee

 

Signed into law by Florida Governor Rick Scott on June 23, 2017, HB 911 relating to Insurance Adjusters by State Representative Sean Shaw amends various Florida statutes relating to insurance adjusters.

To read a brief summary of the bill, which becomes effective January 1, 2018, click here.  A more extensive analysis is attached for review.

The bill eliminates licensure for public adjuster apprentices, substituting instead licensure as an all-lines adjuster and appointment by a public adjuster or a public adjusting firm.  In addition, the bill eliminates the requirement for a public adjuster apprentice to work under the supervision of a public adjuster for 12 months before becoming eligible for licensure as a public adjuster.  Instead, that period is reduced to six months of continual appointment as a public adjuster apprentice.

HB 911 also reduces to four the number of public adjuster apprentices that may be appointed by a firm concurrently, and reduces to one the number of public adjuster apprentices that may be supervised by a public adjuster simultaneously.  Thus, while the bill shortens the timeframe for a person to move from apprentice to public adjuster, the bill restructures the supervision that occurs during that period to allow for more focused attention.

Further, the bill:

• Prohibits individuals from directly or indirectly performing the duties of a public adjuster or soliciting, investigating, or adjusting claims on behalf of a public adjuster, unless licensed. However, individuals who photograph or inventory damaged personal property or business personal property are not required to be licensed.
  • In its analysis of HB 911, the Florida House of Representatives noted anecdotal reports of individuals serving as “loss consultants” in claims involving an assignment of benefits. These individuals allegedly solicit claims, but are not licensed as an adjuster. The Florida Department of Financial Services (“DFS”) has indicated that current law is inadequate to permit enforcement of these violations because it does not expressly address indirect solicitation.
• Repeals language that prohibits a public adjuster from contacting a policyholder within 48 hours of an occurrence that might be the basis of an insurance claim.  This provision was declared unconstitutional by the Florida Supreme Court in 2012 as unduly restricting the commercial speech of public adjusters.
• Permits a policyholder to cancel a public adjuster contract by any means, not just by phone or in writing as is currently allowed by law.
• Prohibits a public adjuster from charging a fee that is based on the policy deductible portion of a claim.
• Prohibits a public adjuster, a public adjuster apprentice, or any person working on behalf of a public adjuster from contracting for goods or services that will require the insured or third-party claimant to expend funds in excess of those payable to the public adjuster under the terms of the contract for adjusting services.  This expands the current law prohibition, which is limited to contracts for repair, and further limits the opportunity for self-dealing.
• Prohibits any person who is not licensed as a public adjuster or otherwise exempt from licensure from directly or indirectly performing the duties of or advertising for employment as a public adjuster.  This is language that is typical of professional practice acts and, in combination with the language that tightens up the definition of public adjuster, may assist the DFS in enforcement actions against “loss consultants” and similar violators.
• Reduces from 1 year to 6 months the time an all-lines adjuster must be licensed and appointed as an independent adjuster, company adjuster, or public adjuster apprentice before becoming eligible for licensure as a public adjuster.

Among other miscellaneous provisions of HB 911, the bill:

• Allows employees of insurers to handle residential property insurance claims that are subject to a coverage limit in the policy of $500 or less.
• Clarifies the requirements for designating a primary adjuster.
• Repeals the temporary adjuster license and authority for the DFS to create a pool of adjusters for use during emergencies, neither of which is currently used. (Temporary licenses are generally needed only in the context of hurricanes and other catastrophic events. There is a separate licensing category for catastrophe or emergency adjusters. Thus, the temporary license is not required and the authority to create emergency pools of adjusters is not needed.)
• Clarifies that only authorized insurers or adjusting firms contracted with authorized insurers may designate emergency adjusters for temporary licensure by the DFS during an emergency.
• Changes the required retention for adjuster claim records from 3 years to 5 years to align with other provisions of the Florida Insurance Code.
• Addresses potential conflicts of interest by prohibiting concurrent licensure as an all-lines adjuster and a public adjuster and prohibiting concurrent appointment as an independent, company employee, or public adjuster apprentice.

 

Should you have any questions or comments, please contact Maria Elena Abate (mabate@colodnyfass.com) at (954) 492-4010.

 

 

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