FPCA Homeowners Division Members: Draft Public Adjusters Reform Proposal – Please Review
Mar 26, 2013
Florida Property and Casualty Association Homeowners Division Members:
We have learned that we can expect HB 1329 by Rep. Oliva to be on the House Insurance and Banking subcommittee on Thursday. This legislation would remove fee restrictions currently applicable to Public Adjusters on Citizens’ policies. As a result, certain influential members of the committee are soliciting input on other Public Adjuster regulations and restrictions that would reign in Public Adjuster activities. One Public Adjuster association has put together the attached proposal as a compromise. Please review this and let us know your thoughts. The proposal is intended to:
1. Eliminate a loophole which allows public adjusters to enter into arrangements as “loss consultants” to avoid fee restrictions by restricting their fees “from any source;”
2. Reduce the overall percentage a public adjuster can collect from 20 percent to 15 percent;
3. Provide an enforcement mechanism for the DFS to discipline public adjusters who “maneuver” around the fee limitations;
4. Prohibit the public adjuster from entering into certain financial arrangements with the insured;
5. Deletes the 10 percent cap on fees on offers from Citizens
Should you have any questions, please contact Katie Webb (kwebb@cftlaw.com).
