Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 121528
                            CHAMBER ACTION
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       05/04/2005 11:07 AM         .                    
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11  Senator Argenziano moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 38, lines 16 through 25, delete those lines
15  
16  and insert:  
17         Section 30.  Section 626.854, Florida Statutes, is
18  amended to read:
19         626.854  "Public adjuster" defined; prohibitions;
20  requirements.--The Legislature finds that it is necessary for
21  the protection of the public to regulate public insurance
22  adjusters and to prevent the unauthorized practice of law.
23         (1)  DEFINITIONS.--
24         (a)  The term A "public adjuster" means is any person,
25  except a duly licensed attorney at law as hereinafter in s.
26  626.860 provided, who, for money, commission, or any other
27  thing of value, prepares, completes, or files an insurance
28  claim form for an insured or third-party claimant or who, for
29  money, commission, or any other thing of value, acts or aids
30  in any manner on behalf of an insured or third-party claimant
31  in negotiating for or effecting the settlement of a claim or
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    9:52 PM   04/26/05                             s1912c2c-03-c9t

Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 claims for loss or damage covered by an insurance contract or 2 who advertises for employment as an adjuster of such claims, 3 and also includes any person who, for money, commission, or 4 any other thing of value, solicits, investigates, or adjusts 5 such claims on behalf of any such public adjuster. The term 6 excludes: 7 (2) This definition does not apply to: 8 1.(a) A licensed health care provider or employee 9 thereof who prepares or files a health insurance claim form on 10 behalf of a patient. 11 2.(b) A person who files a health claim on behalf of 12 another and does so without compensation. 13 (b) For purposes of this section, the term "insured" 14 includes only the policyholder and any beneficiaries named or 15 similarly identified in the policy. 16 (2)(3) PROHIBITIONS.-- 17 (a) A public adjuster may not give legal advice. A 18 public adjuster may not act on behalf of or aid any person in 19 negotiating or settling a claim relating to bodily injury, 20 death, or noneconomic damages and may not receive a fee under 21 the contract of representation for any Unfair Claims Practices 22 violation, tort claim, statutory interest, costs, attorney's 23 fees, or extra-contractual damages unrelated to the damages 24 under the policy. 25 (b) A public adjuster may not restrict or prevent an 26 insurer, company, or independent adjuster, attorney, or 27 investigator or any other person acting on behalf of the 28 insurer from having reasonable access at reasonable times to 29 an insured or claimant or to the insured property that is the 30 subject of a claim. 31 (3) LIMITS ON COMMISSIONS.-- 2 9:52 PM 04/26/05 s1912c2c-03-c9t
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 (a) As to any one loss or occurrence, a public 2 adjuster may not charge, agree to, or accept as compensation 3 or reimbursement any payment, commission, fee, or other thing 4 of value equal to or greater than any payment, commission, 5 fee, or other thing of value equal to or greater than 10 6 percent of any insurance settlement or proceeds. The 7 Department of Financial Services may, however, adopt a rule 8 specifying higher limits on public adjuster commissions than 9 the 10-percent limit in this paragraph. 10 (b) A public adjuster may not, prior to settlement of 11 the claim, require, demand, or accept any fee, retainer, 12 compensation, deposit, or other thing of value. 13 (4) REQUIREMENTS AS TO CONTRACTS.-- 14 (a) A public adjuster shall provide, immediately upon 15 providing notice of representation to the insurer and 16 throughout the claims handling process, a true and complete 17 copy of any contract with an insured or claimant, including 18 any revised or supplemental contracts. Each such copy must be 19 provided to the insurer and to the representatives of the 20 insurer handling the claim. 21 (b) A public adjuster shall assure that all contracts 22 for his or her services are in writing and comply with the 23 following requirements: 24 1. The contract must legibly state the full name as 25 specified in the department records of the public adjuster 26 signing the contract. 27 2. The contract must be signed by the public adjuster 28 who solicited the contract. If the public adjuster is licensed 29 by the department as an emergency public adjuster, the 30 contract must also show the emergency public adjuster's: 31 a. Permanent home address and home telephone number; 3 9:52 PM 04/26/05 s1912c2c-03-c9t
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 b. Permanent home-state business address and telephone 2 number; and 3 c. Department of Financial Services license number. 4 3. The contract must show: 5 a. The insured's full name and street address; 6 b. The address of the loss; 7 c. A brief description of the loss; and 8 d. The name of the insurer and, if available, the 9 policy number. 10 4. The contract must be signed by the insured or 11 claimant and show the date on which the insured or claimant 12 signed the contract and the county in which it was executed or 13 signed. 14 5.a. The contract must show the full amount of 15 compensation to the public adjuster. 16 b. If the compensation is based on a share of the 17 insurance settlement, the contract must show the exact 18 percentage. 19 c. The contract must specify any costs to be 20 reimbursed to the public adjuster out of the proceeds, 21 including specification by type and an estimate of the dollar 22 amount. 23 6. The contract must set forth all terms and 24 conditions of the engagement. 25 (c) Compensation provisions in a public adjuster's 26 contract may not be redacted in any copy provided to an 27 insurer. Any such redaction is an omission of material fact in 28 violation of s. 626.9541(1)(e)2. 29 (5) GENERAL ETHICAL REQUIREMENTS.--Public adjusters 30 shall adhere to the following requirements: 31 (a) A public adjuster may not undertake the adjustment 4 9:52 PM 04/26/05 s1912c2c-03-c9t
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 of any claim concerning which he or she is not currently 2 competent and knowledgeable as to the terms and conditions of 3 the insurance coverage, or which otherwise exceeds his or her 4 expertise. 5 (b)1. A person may not, as a public adjuster, 6 represent any person or entity whose claim such public 7 adjuster previously adjusted while acting as an adjuster 8 representing a public adjuster or represent any person or 9 entity whose claim such public adjuster previously adjusted 10 while acting as an adjuster representing an insurer or 11 independent adjusting firm. 12 2. A person may not, as a company or independent 13 adjuster, represent himself or herself, or any insurer or 14 independent adjusting firm, against any person or entity that 15 he or she previously represented as a public adjuster. 16 (c)1. A public adjuster may not represent or imply to 17 a client or potential client that insurers, company adjusters, 18 or independent adjusters routinely attempt to, or do in fact, 19 deprive claimants of their full rights under an insurance 20 policy. 21 2. An insurer, independent adjuster, or company 22 adjuster may not represent or imply to a claimant that 23 engaging a public adjuster will delay or have another adverse 24 effect upon the settlement of a claim. 25 (d)1. A public adjuster, while so licensed in the 26 department's records, may not represent or act as a company 27 adjuster, independent adjuster, or general lines agent. 28 2. An independent adjuster, company adjuster, or 29 general lines agent, while so licensed in the department's 30 records, may not represent or act as a public adjuster. 31 (e)1. A public adjuster's contract with a client is 5 9:52 PM 04/26/05 s1912c2c-03-c9t
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 revocable or cancelable by the insured or claimant, without 2 penalty or obligation, for at least 14 days after the day the 3 contract is formed. 4 2. The public adjuster shall disclose in writing to 5 the insured or claimant that the insured or claimant has the 6 right to cancel with prompt notice within the revocation 7 period. 8 3. If the insured or claimant elects to cancel the 9 contract, the insured or claimant shall provide prompt notice 10 to the public adjuster. 11 4. This paragraph does not prevent an insured or 12 claimant from pursuing any civil remedy after the expiration 13 of the revocation period. 14 (f)1. A public adjuster may not enter into a contract 15 that grants, or otherwise accept, a power of attorney that 16 vests in the public adjuster the effective authority to choose 17 the persons who are to perform repair work. 18 2. A public adjuster shall ensure that, if a 19 contractor, architect, engineer, or other licensed 20 professional is used in formulating estimates or otherwise 21 participates in the adjustment of the claim, the professional 22 is licensed by the Department of Business and Professional 23 Regulation. 24 (6) TOTAL LOSS CLAIMS.--A public adjuster may not 25 knowingly enter into a contract to adjust a residential 26 property claim subsequent to an insurer declaring the property 27 a total loss, or when the property is an obvious total loss, 28 unless the services to be provided by the public adjuster can 29 reasonably be expected to result in the insured or claimant 30 obtaining an insurance settlement, net of the public 31 adjuster's compensation, in excess of what the insured or 6 9:52 PM 04/26/05 s1912c2c-03-c9t
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 claimant would have obtained without the services of the 2 public adjuster. 3 (4) For purposes of this section, the term "insured" 4 includes only the policyholder and any beneficiaries named or 5 similarly identified in the policy. 6 7 8 ================ T I T L E A M E N D M E N T =============== 9 And the title is amended as follows: 10 On page 3, lines 25 through 27, delete those lines 11 12 and insert: 13 cross-references, to conform; amending s. 14 626.854, F.S.; defining the term "insured"; 15 prohibiting a public adjuster from undertaking 16 adjustment of certain claims for a fee; 17 prohibiting a public adjuster from undertaking 18 certain activities in the course of adjusting a 19 claim; limiting the commission payable to a 20 public adjuster; authorizing rulemaking by the 21 Department of Financial Services; requiring a 22 public adjuster to provide an insurer with 23 certain contracts relating to adjustment of a 24 claim; establishing requirements for a contract 25 for the services of a public adjuster; 26 prohibiting redaction of provisions regarding 27 compensation of a public adjuster in a contract 28 provided to an insurer; establishing that such 29 a redaction is an omission violating a 30 statutory provision governing unfair or 31 deceptive trade practices; prohibiting a public 7 9:52 PM 04/26/05 s1912c2c-03-c9t
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1912 Barcode 121528 1 adjuster from adjusting certain claims; 2 prohibiting a public adjuster from making 3 specified representations to a client or a 4 potential client; prohibiting a licensed public 5 adjuster, independent adjuster, company 6 adjuster, or general lines agent from adjusting 7 certain claims; providing for revocation or 8 cancellation of a contract between public 9 adjuster and a client; requiring notice to the 10 client of the right to cancel such contract; 11 requiring prompt notice of an election to 12 cancel such contract; prohibiting a public 13 adjuster from contracting for or accepting 14 authority to choose persons who are to perform 15 repair work; requiring that a public adjuster 16 ensure only licensed professionals are used to 17 develop estimates or otherwise participate in a 18 claim adjustment; prohibiting a public adjuster 19 from contracting to adjust certain residential 20 property claims that an insurer has declared a 21 total loss; 22 23 24 25 26 27 28 29 30 31 8 9:52 PM 04/26/05 s1912c2c-03-c9t