A new bill filed in Florida will have a significant impact on Florida’s public adjustment profession if it becomes law. The proposed law extends the time a policyholder can terminate a public adjuster agreement, provides for termination of a public adjuster agreement if estimates of the loss are not provided to the insurer within 45 days, requires notice to the insurer within three days rather than 30 days if a public adjuster is hired , and provides that the fee percentage when a client hires a public adjuster after an insurer’s initial offer “shall” be 10 percent of the new amount collected.
The bill states in part:
If the public adjuster contracts with an insured or claimant after the insured or claimant has unsuccessfully negotiated an insurance claim and the public adjuster succeeds in obtaining a higher claim, the public adjuster shall receive a commission consisting of 1
0 percent of the difference between the original offer on insurance compensation to the insured and the final insurance compensation received through the work of the public adjustment authority after concluding the contract with the insured or injured party.
Can the policyholder not negotiate a fee of less than 10 percent?
The bill further stipulates the following in the event of an emergency:
If the contract was entered into on the basis of events subject to a state of emergency by the governor, an insured or injured party may terminate the public adjuster’s contract to settle a claim without penalty or obligation within 30 days after the date the contract is fulfilled.
While a section already in law requires an appraisal to be completed within 60 days, the new bill ambiguously provides a different time period and provides for termination of the public adjuster’s contract:
An insured may terminate the contract without additional penalties or fees charged by the public adjuster if such estimate is not provided within 45 days, subject to the termination notice requirement of this section.
I strongly suggest that public adjusters read this entire bill and then follow guidelines from the Florida Association of Public Insurance Adjusters. This proposed law appears to be very ambiguous, inconsistent with other provisions and will undoubtedly need to be revised.
There is no companion in the Florida Senate. My prediction is that there will be a companion bill in the near future.
Today’s thought
One of the penalties for refusing to participate in politics is that you end up being ruled by your inferiors.
— Plato
Source link
