With Public Adjuster Ethics Law Enacted, Corresponding Regulation Now Proposed For Repeal

 

With the State of Florida’s enactment of Section 626.854(11), Florida Statutes, the Florida Department of Financial Services, Division of Agent and Agency Services has advised that Rule Development to repeal Rule Chapter 69B-220.201 (5)(d), Florida Administrative Code, relating to adjuster ethical requirements will commence.  The repeal of this subsection is required due to the enactment of the law, which supersedes the regulation. 

If requested, a hearing will be held on May 10, 2011 at 2:00 p.m. in Room 142 of the J. Edwin Larson Building, 200 E. Gaines Street in Tallahassee.

Both the statute and Rule text proposed for repeal are reprinted below.

 

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:

(a) No public adjuster shall require, demand, charge or accept any fee, retainer, compensation, commission, deposit, or other thing of value, prior to receipt by the insured or claimant of a payment on the claim by the insurer.

(b) As to any one insured or claimant, no public adjuster shall charge, agree to, or accept as compensation or reimbursement any payment, commission, fee, or other thing of value equal to more than ten percent of the amount of any insurance settlement or claim payment.

(c) No public adjuster shall enter into any contract, agreement or other arrangement with any person, including an attorney, building contractor, architect, appraiser or repairman, by which the person would enter into an agreement to assist a claimant or insured on an insurance claim, utilize the services of the adjuster to carry out the agreement and pay the adjuster an amount that would exceed the limitation of the adjuster’s compensation or reimbursement as provided in paragraph (b) above.

(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.

 

626.854(11)(a), F.S.

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.

 

 

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