Welcome to the AAPIA’s Legal Corner. Here we will give you a quick summary and legal analysis of what you need to know about laws that may affect your business. We will also inform you about what needs to be done to stay in compliance with new laws and regulations.
Holly Soffer, Esq.
Kellis & Soffer, LLP.
(215)-244-1045
hk.soffer2@verizon.net
Holly has practiced law since 1987, providing personalized legal services and consulting for small and medium size businesses. In addition to advocating for public adjusters through the AAPIA, Holly has represented individual public adjusters locally and nationally for more than ten years.
On March 10th, 2011, AAPIA President Gene Veno recorded a podcast on the new Bills introduced in Florida: SB 1714, HB 1243, SB1462, SB 1330 and HB 0885. Please click the podcast tab above to listen to his message. This will provide you with the latest news since our Town Hall webinar on February 17th, which discussed SB 408. These Bills aim to reduce the role of the Citizens Property Insurance Corporation and to reform the insurance industry in Florida. However, they also contain some anti-consumer elements:
SB 1714 and HB 1243 propose, among other things:
Phasing in limits on covered property from one million dollars on a structure or single condominium to five hundred thousand dollars by January 2014
Removing language stating the level of service to be provided
Prohibiting the insured from using the services of a public adjuster
Eliminating HO3 policies by 12-31-12.
Eliminating coverage for commercial non-residential risks
Allowing for a 45% surcharge if there is a hurricane affecting Citizens Property Insurance Corporation
Raising the threshold to 25% for comparison coverage, meaning that if a homeowner can get coverage from private carrier that is up to 25% more, the homeowners are ineligible for coverage from Citizens
SB 1462 removes from the powers of the Consumer Advocate the preparation of an annual report card on the Insurance Companies, using a letter grade scale, on the following topics:
The number and nature of consumer complaints
The disposition of all complaints received by the Department
The average length of time for payment of claims by the insurer
Other general factors
SB 1330 and HB 0885 lessen the standards for approval of rate regulation by insurers
Please continue to follow the website for further updates.
Is your Public Adjuster Contract Compliant?
You are a busy professional who is out soliciting and adjusting claims. You try to keep current with changes in the law and regulations. You may even have to do this in multiple states.
One thing to keep in mind is that minor changes in required contract language often go unnoticed in an effort to communicate the larger issues contained in legislative changes. These are often lumped in the “miscellaneous” section of a report on a change in the law or a proposed Bill. Often, the disclosure language is amended, sometimes due to a change in a consumer protection statute you may be unaware of, a change in contract requirements in response to a new technology, or other reasons that don’t get much publicity. For example, in Pennsylvania, new proposed legislation will require the initials of the insured next to certain disclosures, a requirement that has largely gone unreported.
Unfortunately, if your contract is noncompliant, you will be subject to sanctions under the law. These sanctions can include fines, suspension, or criminal charges. Also, your contract could be viewed as illegal, which could prevent you from collecting your fee. None of these are scenarios you would want for your career or business.
You should do a contract review on an annual basis, making sure your contract is compliant. A few hours of work could end up saving you a lot of cost and trouble in the future. As always, feel free to contact me if you need help with your contract review.
Louisiana Passes Joint Resolution to Study the Feasibility of Authorizing Public Adjusters to Charge Consumers on a Contingency Fee Basis for Loss Adjustment Services
The AAPIA has been involved in negotiating some of these proposals: Quick Summary by Issue, Percentage Fee, will be considered Fee Caps, may be considered Ability to Negotiate Claim, and not considered at this time. More detail on some of the proposed changes in the law and a brief summary of those negotiations can be found below.
As Gene has previously written in his blog, he has been appointed, as the president of the AAPIA, to be on a committee composed of the commissioner of insurance, the president of the LA State Bar Association, the chief executive officer of the Independent Insurance Agents of America, the president of the National Association of Public Insurance Adjusters, as well as a designee to each of the previously mentioned respective groups. Also, he has been appointed by the governor to represent licensed public adjusters in LA to study the issue of whether or not public adjusters can charge a fee that is based on a percentage of loss.
Throughout the Spring, the AAPIA has been involved in discussions with stakeholders in Louisiana, including the Department of Insurance, the Louisiana Bar Association, other public adjusting groups, and staff and members of the Insurance Committee of the House of Representatives. Through these discussions, the AAPIA hopes to introduce amendments to the recently enacted-2005- Public Adjuster licensing law in Louisiana. This would allow for percentage fees and other provisions similar to those found in the NAIC Model Act which would allow public adjusters to negotiate and effect the settlement of claims on behalf of the insured. The current licensing statute does not allow adjusters to negotiate or charge a percentage fee, stating that such conduct is an unauthorized practice of law.
An amendment to the statute that we had supported, and helped create, which would allow public adjusters to both negotiate and charge a percentage fee was proposed. However, this did not pass out of the House Insurance Committee. Regardless, we were pleased to be among the stakeholders appointed to the Advisory Committee that was formed to study the issue of the charging of percentage fees. At those committee meetings, Gene will continue to represent your interests in a free and open market, as well as the interests of consumers, who will be better served with a contingent fee rather than having to pay fees out of pocket for adjusting services. The committee must make its recommendations by February 1, 2011. If you want to support our efforts, please write to your Representative or Senator, and express your support for the public adjuster’s ability to charge a percentage fee.
On Monday October 18th, Assembly Bill No. 3294 and Senate Bill No. 1557 were unanimously passed by the Assembly Regulated Professions Committee.
Quick summary:
Four-year license term changed to two years.
License fee $360.00 during the first year after the Bill is passed (to cover 4 years), and thereafter the fees to be set by the Department of Insurance
Fifteen (15) hours of CE required.
Within the first 24 hour period after a loss, no solicitation between the hours of six p.m. and eight a.m.
The AAPIA supports this legislation, but is concerned about the license fees, and we will be meeting with the Department of Insurance to discuss what the fees for the new two year term will be.
