Public Insurance Adjusters

Cam Fentriss, FRSA LEGISLATIVE COUNSEL

Public insurance adjusters are a fiery group. Over the years, there has been a lot of fighting over what a public adjuster can or cannot do, and there has also been a lot of fighting by public adjusters to try to prevent others from intruding on all the territory they want to claim. Given that, we should be aware of what we do and make sure that we do not accidentally step into a pile of public adjuster stuff. So here is a comparatively small amount of information to help you stay away from trouble. Much of this is taken directly from the law in order to avoid any misstatements.

What is a public adjuster? As stated in Florida law: any person, except a duly licensed attorney at law as exempted under s. 626.860, who, for money, commission, or any other thing of value, directly or indirectly prepares, completes, or files an insurance claim for an insured or third-party claimant or who, for money, commission, or any other thing of value, acts on behalf of, or aids an insured or third-party claimant in negotiating for or effecting the settlement of a claim or claims for loss or damage covered by an insurance contract or who advertises for employment as an adjuster of such claims. The term also includes any person who, for money, commission, or any other thing of value, directly
or indirectly solicits, investigates, or adjusts such claims on behalf of a public adjuster, an insured, or a third-party
claimant. The term does not include a person who photographs or inventories damaged personal property or business personal property or a person performing duties under another professional license, if such person does not otherwise solicit, adjust, investigate, or negotiate for or attempt to effect the settlement of a claim. (Section 626.854(10), Florida Statutes.)

You must have a license to do this work, and, if you do not, you could be charged with a felony in the third degree. (Section 626.8738, Florida Statutes.)

There is some exception language that will be helpful for you to know (but these apply only to residential or condominium unit work):

Section 626.854(15), Florida Statutes: A licensed contractor under part I of chapter 489, or a subcontractor, may not adjust a claim on behalf of an insured unless licensed and compliant as a public adjuster under this chapter. However, the contractor may discuss or explain a bid for construction or repair of covered property with the residential property owner who has suffered loss or damage covered by a property insurance policy, or the insurer of such property, if the
contractor is doing so for the usual and customary fees applicable to the work to be performed as stated in the contract between the contractor and the insured.

Section 626.854(17), Florida Statutes: A public adjuster, a public adjuster apprentice, or a person acting on behalf of an adjuster or apprentice may not enter into a contract or accept a power of attorney that vests in the public adjuster, the public adjuster apprentice, or the person acting on behalf of the adjuster or apprentice the effective authority to choose the persons or entities that will perform repair work in a property insurance claim or provide goods or services that will require the insured or third-party claimant to expend funds in excess of those payable to the public adjuster under the terms of the contract for adjusting services.

As if the above (and everything in this law that is not included here) is not confusing enough, even more has been added that took effect January 1, 201:

Section 626.854(19), Florida Statutes: Except as otherwise provided in this chapter, no person, except an attorney at law or a public adjuster, may for money, commission, or any other thing of value, directly or indirectly:

a. Prepare, complete, or file an insurance claim for an insured or a third-party claimant;

b. Act on behalf of or aid an insured or a third-party claimant in negotiating for or effecting the settlement of a claim for loss or damage covered by an insurance contract;

c. Advertise for employment as a public adjuster; or

d. Solicit, investigate, or adjust a claim on behalf of a public adjuster, an insured, or a third-party claimant.

You can find the entire law by going to www.leg.state.fl.us, on the left side of the screen, click on "Statutes, Constitution, & Laws of Florida;' then click on "Florida Statutes;' then select "Title XXXVI 1," then select "Chapter 626;' then select "Part VI, Insurance Adjusters."

FRM

Anna Cam Fentriss is an attorney licensed in Florida since 1988 representing clients with legislative and state agency interests. Cam has represented FRSA since 1993, is an Honorary Member of FRSA, recipient of the FRSA President's Award and the Campanella Award in 2010.