Non-Controversial Public Adjuster State of Emergency Ethics Rule Amendment Workshop Canceled Due to Lack of Attendance
May 10, 2011
A workshop scheduled today, May 10, 2011, by the Florida Department of Financial Services, Division of Insurance Agents and Agency Services on amendments to Rule 69B-220.201 relating to public adjuster ethical constraints during a State of Emergency was not held, inasmuch as there were no interested parties in attendance.
The purpose of the amendments is to delete section (5)(d) of the Rule, which is an outdated section and superseded by changes to Section 626.854 (11), F.S. made in 2008.
The text of the aforementioned Rule and statutory language is reprinted below.
Rule 69B-220.201 (5)(d), F.A.C.
(5) Public Adjusters, Ethical Constraints During State of Emergency. In addition to considerations set forth above, the following ethical considerations shall apply to public adjusters in the event that the Governor of the State of Florida issues an Executive Order, by virtue of the authority vested in Article IV, Section 1(a) of the Florida Constitution and by the Florida Emergency Management Act, as amended, and all other applicable laws, declaring that a state of emergency exists in the State of Florida:
(d) This subsection applies to all claims that arise out of the events that created the State of Emergency, whether or not the adjusting contract was entered into while the State of Emergency was in effect and whether or not a claim is settled while the State of Emergency is in effect.
Section 626.854 (11), F.S.
(11)(a) If a public adjuster enters into a contract with an insured or claimant to reopen a claim or to file a supplemental claim that seeks additional payments for a claim that has been previously paid in part or in full or settled by the insurer, the public adjuster may not charge, agree to, or accept any compensation, payment, commission, fee, or other thing of value based on a previous settlement or previous claim payments by the insurer for the same cause of loss. The charge, compensation, payment, commission, fee, or other thing of value may be based only on the claim payments or settlement obtained through the work of the public adjuster after entering into the contract with the insured or claimant. The contracts described in this paragraph are not subject to the limitations in paragraph (b).
(b) A public adjuster may not charge, agree to, or accept any compensation, payment, commission, fee, or other thing of value in excess of:
1. Ten percent of the amount of insurance claim payments by the insurer for claims based on events that are the subject of a declaration of a state of emergency by the Governor. This provision applies to claims made during the period of 1 year after the declaration of emergency.
2. Twenty percent of the amount of all other insurance claim payments.
To access today’s meeting notice, click here.
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to bellis@cftlaw.com.