Identical Florida Public Adjuster Regulation Bills Filed

Filed yesterday, February 22, 2010, Senate Bill 2264 by Senator Mike Bennett and its identical companion, House Bill 1181 by State Representative Janet Long, would regulate the activities of public adjusters in Florida. 

SB 2264 and HB 1181 would, with certain exceptions, prohibit public adjusters from making certain employment solicitations or unsolicited written communications.  Those exceptions, which pertain to written communication, specify that:   

• The first page and the lower left corner of the applicable envelope must be marked “ADVERTISEMENT” in red ink, using a 14-point font;
• The communication must be sent by regular, United States mail and not by registered mail or any other form of restricted delivery;
• The communication must not resemble legal pleadings or documents;
• The communication may not contain any information about the public adjuster’s or public adjusting firm’s record or history in obtaining claim payments or settlements for other insureds;
• The communication may not be mailed less than 30 days after the occurrence of an event that may be the subject of a claim under an insurance policy. (Restrictions on specific days and times that public adjusters may solicit are deleted); and
• A public adjuster may not indirectly, through any other person or entity, initiate contact or engage in face-to-face or telephonic solicitation or enter into a contract with any insured or claimant under an insurance policy. (The previous 48-hour rule and direct solicitation provision is deleted).

Under the provisions of SB 2264 and HB 1181, public adjuster charges or fees would be based on insurer repair or replacement cost value, as opposed to the claim payment amount.

In addition to requiring public adjuster contracts to feature existing statutory disclaimer language, SB 2264 and HB 1181 would mandate that the names and addresses of the public adjuster, public adjusting firm and the insured be included, together with the signature date and signatures of the public adjuster and the insured.   A copy of the contract then would be remitted to the insurer within 30 days after execution.

If passed into law, the bills would create Section 626.70132, Florida Statutes, to specify that public adjuster contracts involving a claim, supplemental claim or reopened claim under a personal lines residential policy that provides coverage for windstorm or hurricane loss or damage are barred, unless notice of the claim was given to the insurer in accordance with the terms of the policy within three years after the windstorm or hurricane first made landfall or caused the covered damage in Florida.

To view complete bill information, click here.

Should you have any questions or comments, please contact Colodny Fass.

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