Testimony from Public Adjusters, Mortgage Bankers Heard at Second Claims Dispute Resolution Roundtable

Florida’s Insurance Consumer Advocate Sean Shaw held a second roundtable discussion today, November 18, 2009, on potential improvements to Florida’s insurance claims settlement process.  During the initial meeting, contractors and insurance claims personnel discussed claims-related issues they have experienced firsthand in the adjusting process and the completion of ensuing repairs.

At today’s meeting, various representatives from state agencies and other interested parties testified before the roundtable members.  Florida Building Commission Director Rick Dixon discussed the Florida Building Code, noting that the impact of recent code upgrades has been effective in fortifying building structures.

Florida Department of Business and Professional Regulation Division Director Tom Vaccaro, who oversees various regulatory aspects of the State’s construction industry, reviewed Florida’s construction licensing process and procedures. 

Mortgage Bankers Association of Florida Political Action Committee Chairman Jay Ralstin reported on the procedures relating to the release of claims payments by mortgage holders to insureds.  In response to a question from roundtable members, Mr. Ralstin noted that claims payments are generally held for policyholders in interest bearing-accounts. He also commented that the release of these funds could be delayed if the borrower has a history of delinquent mortgage payments.

Florida Department of Financial Services Bureau Chief Matt Tamplin briefly reviewed insurance adjuster education and licensing requirements.

Restoration firm specialists, who also testified, expressed the view that timely communication among contractors, adjusters and insurance companies is necessary for the effective resolution of insurance claims.  Further, he explained that construction supplies and costs can be difficult to manage even during non-emergency periods. The restoration specialist noted that they perceived the claims process as inconsistent. 

Finally, it was noted that mortgage companies’ policies of dispatching of additional inspectors only adds to the delay in resolving claims.

During the roundtable discussion, it was noted that mandatory education requirements for adjusters and corresponding optional requirements for contractors are being considered.  Consumer Advocate Shaw stated that the ultimate solution is to improve communication among homeowners, contractors and insurers.

Terry Butler from the Florida Department of Financial Services reviewed the appraisal process and suggested that appraisal umpires should be licensed.  He also expressed the importance for setting timeframes for the appraisal process, which would include the selection of appraisers, allowing time for a potential resolution and designating an umpire.

Public adjuster representatives were on hand at the roundtable to defend their role as “important insurer representatives.”  Emphasizing the importance of the appraisal process because of Florida’s overburdened circuit court system, they also suggested that requiring umpire licensing would increase the appraisal costs by decreasing the supply of umpires available in the market.

Frank Artiles, a public adjuster who has filed to run as a candidate for Florida House of Representatives District 119, which is currently held by Republican State Representative Juan Zapata, urged the group to recommend three initiatives: (1) since approximately 84 versions of homeowners’ policies exist, create one standard homeowner’s policy that could be used by all insurers;(2) specify appraisal as a mandatory provision in all homeowner’s policies; and, (3) public adjusters should be classified as a recognized payee by mortgage companies, much like general contractors or other vendor/service providers that can receive direct payment.

Mr. Shaw suggested that, due to the complexities involved with the appraisal and umpire issues, perhaps a future roundtable discussion could be solely devoted to these topics.

A representative of the Public Association of Insurance Adjusters spoke in support of limiting the regulation of public adjusters to enable more access to them by insureds.

Construction company representatives noted that they, rather than public adjusters, should be tapped as the recognized experts who are qualified to demonstrate actual costs associated with claims.  They noted issues with insurers providing lump-sum, rather than line-item formatted estimates.  

To view the agenda and hyperlinks to related meeting materials, click here.  To view a list of roundtable participants, click here.

To view a summary of the first roundtable, which was held on July 23, click here.

 

 

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

 

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