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New Florida law changes as of 2023/24 (Provided by TrueHaven Legal Department)

Changes to Public Adjuster contracts;

a. Contracts must be in at least 12-point type, need a title of "PUBLIC ADJUSTER CONTRACT" also in 12 pt type

b. The fraud statement must be in minimum 18-point bold type before the signature of the insured.

c. New Required items: phone number, e-mail address of public adjuster and insured and license number of the public adjuster.

d. Fee language must also be in minimum 18-point bold type.

e. Initials of the insured must be on all pages that do not contain a signature.

f. An unaltered copy of the executed contract must be remitted to the insured at the time of execution and to the insurer, or the insurer's representative within 7 days after execution.

g. New rescission language with 18 pt font requirement immediately before signature of insured.

Other Changes:

a. A public adjuster cannot receive compensation for services provided before the date the insured receives an unaltered copy of the executed contract or the date executed contract is submitted to the insurer (not date of contract, beware of the difference).

b. Proof of receipt by the insured and proof of submission to the insurer must be maintained by the public adjuster for not less than 5 years.

c. Recission period is extended to 60 days if the Public Adjuster has not submitted a written estimate to the insured within 60 days after executing the contract, unless the failure to provide the written estimate within 60 days is caused by factors beyond the public adjuster's control. The cancellation period for failure to provide a written estimate terminates on the date the estimate is provided.

d. New disclosure that must be signed by the insured.

e. Limitations on contracting for services for a third party

f. Recission period changes: 30 days for a claim related to a declaration of a state of emergency or 10 days after contract, whichever is later

g. New record keeping requirements

h. License must be posted in principal place of business or have license in possession if “conducting business away from” such location.

Fee changes:

Limitations on fees: Fees cannot be “more than one percent of the amount of insurance claim payments or settlements, paid to the insured by the insurer for any coverage part of the policy where the claim payment or written agreement by the insurer to pay is equal to or greater than the policy limit for that part of the policy, if the payment or written commitment to pay is provided within 14 days after the date of loss or within 10 days after the date on which the public adjusting contract is executed, whichever is later.”

And: zero percent (no fee) of the amount of insurance claim payments or settlements, paid to the insured by the insurer for any coverage part of the policy where the claim payment or written agreement by the insurer to pay occurs before the date on which the public adjusting contract is executed. (This was in the law, but stated in an unclear manner before.)

Other parts of the Law:

1. Entity license needed as well as appointment system.

2. Payments: No payments to public adjusters by contractors or attorneys (but you can be an expert on a claim).

3. Proof of Loss: All proof of loss statements must prominently display the following statement: “Pursuant to s. 817.234, Florida Statutes, any person who, with the intent to injure, defraud, or deceive any insurer or insured, prepares, presents, or causes to be presented a proof of loss or estimate of cost or repair of damaged property in support of a claim under an insurance policy knowing that the proof of loss or estimate of claim or repairs contains any false, incomplete, or misleading information concerning any fact or thing material to the claim commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, Florida Statutes.”

4. Definition of public adjuster with regard to solicitation: “…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”.

5. Notice Of Property Insurance Claims

a. Statute of Limitations Rules: The time limit for providing notice of a claim has been reduced from 3 years to 2 years for a new claim or “reopened” claim. Supplemental claims must be filed within 3 years after the date of loss.

b. For hurricane claims, “date of loss” is defined as the date the hurricane makes landfall.

6. Definitions:

a. Reopened Claim – A claim that an insurer has previously closed, but that has been reopened upon an insured’s request for additional costs for loss or damage previously disclosed to the insurer.

b. Supplemental Claim – A claim for additional loss or damage from the same peril which the insurer has previously adjusted or for which costs have been incurred while completing repairs or replacement pursuant to an open claim for which timely notice was previously provided to the insurer.

7. Other Important Rules For Public Adjusters. Public adjusters cannot pay for roof inspections or roof claims. According to § 626.854(20)(a)-(c), any of the following acts are prohibited and will result in discipline:

a. Offering to a residential property owner a rebate, gift, gift card, cash, coupon, waiver of any insurance deductible, or any other thing of value in exchange for:

b. Allowing a contractor, a public adjuster, a public adjuster apprentice, or a person acting on behalf of a public adjuster or public adjuster apprentice to conduct an inspection of the residential property owner’s roof; or

c. Making an insurance claim for damage to the residential property owner’s roof. d. Offering, delivering, receiving, or accepting any compensation, inducement, or reward for the referral of any services for which property insurance proceeds would be used for roofing repairs or replacement.”

Any violations may result in fines of up to $10,000 per offense.

8. Licensing: can receive a license after being an appointed non-resident licensee for 6 months—some other technical rules for fingerprints and other procedures are new.

9. Bonds: The bond must remain in effect for 1 year after the termination or expiration of the license. This applies to non-resident licensees as well.

On residential claims and condo unit owner policies:

10. Ban on solicitation: no solicitation except for Monday through Saturday of each week and only between the hours of 8 a.m. and 8 p.m. on those days.

11. Advertising rules:

a. The following is prohibited as it is considered misleading:

• i. inviting an insured policyholder to submit a claim when the policyholder does not have covered damage to insured property.

• ii. inviting an insured policyholder to submit a claim by offering a monetary or other “valuable inducement”.

• iii. A statement or representation that inviting an insured policyholder to submit a claim by stating that there is “no risk” to the policyholder by submitting such claim.

• iv. A statement or representation, or use of a logo or shield, that implies or could mistakenly be construed to imply that the solicitation was issued or distributed by a governmental agency or is sanctioned or endorsed by a governmental agency.

b. The following disclaimer, which is not required to be printed on standard size business cards, must be added in BOLD PRINT AND CAPITAL LETTERS in typeface no smaller than the typeface of the body of the text to all written advertisements by a public adjuster:

“THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT.”----“written advertisement” includes only newspapers, magazines, flyers, and bulk mailers.

12. Gifts or Inducements: You or your employees or other agents may not give or offer to give a monetary loan or advance to a client or prospective client. You may not give or offer to give, directly or indirectly, any article of merchandise having a value in excess of $25 to anyone for the purpose of advertising or as an inducement to entering into a contract with a public adjuster.

13. Conflict rules: a public adjuster may not participate, directly or indirectly, in the reconstruction, repair, or restoration of damaged property that is the subject of a claim adjusted by the licensee; may not engage in any other activities that may be reasonably construed as a conflict of interest, including soliciting or accepting any remuneration from, of any kind or nature, directly or indirectly; and may not have a financial interest in any salvage, repair, or any other business entity that obtains business in connection with any claim that the public adjuster has a contract or an agreement to adjust.

14. Reopened or Supplemental Claims: a public adjuster may not collect a fee on previous payment by the insurer for the same cause of loss, only on funds collected after the date of contract.

15. Fees:

a. 10% cap on claims that are the subject of a declaration of a state of emergency by the Governor and 20% cap on any other claim, including supplemental ones-- Insurance claim payments made by the insurer do not include policy deductibles, and compensation may not be based on the deductible portion of a claim

b. Public adjuster fees will be based upon the amount paid to the insured, exclusive of attorneys’ fees and costs. Cannot increase rate of compensation solely because claim is being litigated

Key statutes governing Public Adjusters in Florida include:

• s. 626.854 - Definition and Regulations for Public Adjusters

• s. 626.8795 - Prohibition of conflicts of interest

• s. 626.8796 - Contract requirements and fraud statements

• s. 817.234 - False & Fraudulent Insurance Claims

• s. 775.082 - General Penalties

• s. 775.083 - Fines

• s. 775.084 - Repeat Offender Penalties

In Florida, the requirement to submit a Proof of Loss (POL) is typically outlined in the insurance policy. Many policies mandate submission within 60 days of the loss or upon the insurer’s request. It’s crucial to review the specific policy terms to determine the exact timeline.

The Florida Department of Financial Services provides comprehensive information for Public Adjusters, including licensing requirements, regulations, and consumer resources.

• MyFloridaCFO.com

Florida Public Adjusters are required to complete 24 hours of Continuing Education every two years, including:

• 4 hours of Law and Ethics Update

• 20 hours of elective credits  

Courses must be approved for the 3-20 license authority

Recommended online courses:
• AdjusterPro.com

• AmericanInsuranceCollege.com

Apprenticeship

A Public Adjuster is any person that acts on behalf of an insured or third-party claimant in negotiating or effecting the settlement of an insurance claim or who advertises as a public adjuster of such claims for some form of remuneration. 

A Public Adjuster Apprentice is anyone licensed as an All-Lines Adjuster who:

• Is appointed and employed or contracted by a public adjuster or a public adjusting firm.Assists the public adjuster or public adjusting firm in ascertaining and determining the amount of any claim, loss, or damage payable under an insurance contract, or who undertakes to affect settlement of such claim, loss, or damage.

Code Resources for Construction Professionals

• Florida Building Code – 8th Edition (2023)

• Florida Association of Public Insurance Adjusters (FAPIA)

• National Association of Public Insurance Adjusters (NAPIA)

Florida Public Adjuster Contract