Updated Public Adjuster Prompt Notice Rule Draft Published Today, Florida Property Casualty Association Reports
Sep 23, 2016
The Florida Property Casualty Association (“FPCA”) reported today, September 23, 2016, that the Florida Department of Financial Services (“DFS”) has published a new proposed draft of the public adjuster-related “Prompt Notice Rule,” Rule 69B-220.051, entitled “Conduct of Public Adjusters and Public Adjuster Apprentices.”
The DFS held a Rule Development Workshop on the previous draft on April 26, 2016. The FPCA submitted written comments accordingly, which can be accessed here.
The proposed Rule establishes a presumption that the statutory requirement that a public adjuster provides “prompt notice” of a claim to an insurer is satisfied if notice to the insurer is given within five business days after the date on which the contract for adjusting services with the insured was executed. The DFS explained that requiring public adjusters to notify insurers of claims within a specified time period would assist insurers in the assessment and timely settlement of such claims.
The April 26 version of the language reads as follows:
(7) Upon entering into a contract for public adjusting services, the public adjuster must ensure that prompt notice is given of the claim to the insurer. For the purposes of this section, the term “prompt notice” shall be presumed when notice is given within 5 business days after the date on which the contract for services is executed.
The latest revised version of the language states that if the public adjuster gives notice of loss prior to the initiation of permanent repairs, it is presumed prompt, and that if notice of loss is given after permanent repairs have begun, the burden is on the public adjuster to establish that notice was prompt.
The updated version reads:
(7) Upon entering into a contract for public adjusting services, the public adjuster must ensure that prompt notice is given of the claim to the insurer. For the purposes of this section, notice of loss given prior to the initiation of permanent repairs to damaged property shall be presumed prompt. If notice of a loss is given after permanent repairs have been initiated, the burden is on the public adjuster to establish the notice was prompt.
To view the updated version, click here or on the hyperlink below:
Rule 69B-220.051 – 2nd Revision Draft
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