Division of Agent and Agency Services
Protecting the Insurance-Buying Public by Licensing Competent and Trustworthy
Individuals and Entities and Expeditiously Investigating Alleged Violations
of the Florida Insurance Code
News
October 1st, 2008
New Florida Statutes Regulating Public Adjusters Goes Into Effect October 1, 2008
Important changes have been made to the Florida Statutes regulating the business of public adjusters. These changes will become effective October 1, 2008. Some of the most important changes made in these laws fall into one of three categories; customer contact, fees and contracts.
(Complete text of Florida Statute 626.854)
Customer Contact
- Public adjusters are prohibited from contacting an insured or claimant until 48 hours after the occurrence of an event that may be the subject of a claim under a policy
- Public adjusters may not solicit an insured or claimant except on Monday through Saturday and only between the hours of 8 a.m. and 8 p.m.
Fees
- A public adjuster may not charge a fee unless a written contract was executed prior to the payment of a claim
- Public adjusters are prohibited from charging more than 20 percent of the insurance claims payment on non-hurricane claims and 10 percent of the insurance claims payment on hurricane claims for claims made during the first year after the declaration of the emergency These fee caps apply only to residential property insurance policies and condominium association policies as defined in s. 718.111(11)
- There is no fee cap on re-opened or supplemental hurricane claims; however, the fee cannot be based on any payments made by the insurer to the insured prior to the time of the public adjuster contract
Contracts
- Insureds or claimants will have 5 business days after the date on which the contract is executed to cancel a public adjuster’s contract during a state of emergency declared by the Governor; insureds or claimants have 3 business days to cancel a contract as to claims involving non-emergencies
- Public adjuster contracts must be in writing and must display an anti-fraud statement
