The Florida Legislature has updated the layout of contracts for public adjusters. We’ve broken down Florida Statute 626.8796 so that these changes will help you stay current with your contracts.
Public Adjusters Contract Requirements:
- Every contract must say “Public Adjuster Contract” at the top in big 12-point letters.
- The contract must include a fraud warning statement in big, bold 18-point letters above the signature.
- Providing misleading information in the written contract will constitute a third-degree felony.
- The amount of the public adjuster's compensation amount should be in bold 18-point font before the insurer signs the contract.
- Public adjusters must put their full name, license number, and contact info in Property and Casualty Claims.
- The contract must label claims as non-emergency, emergency, or supplemental.
- The insured person must initial every page, but they don’t need to sign each page fully.
- Everyone named in the contract and the public adjuster must sign and date it. If someone cannot sign, the public adjuster must get a signed statement from that person to handle the claims.
Does the insurer have a notice period for cancellation?
Suppose the public adjuster does not send a written estimate to the insurer within 60 days. In that case, the insured can cancel the contract except when it is out of the public adjuster's control. The cancellation period for failure is when the public adjuster provides a written estimate.
The written contract must explain that if the governor declares a state of emergency, the insured can cancel the contract without penalty within 30 days after the date of loss or 10 days after signing the contract.
Protecting Policyholders and Public Adjusters:
When the insured signs the contract, they must receive a copy immediately and within 7 days. Public adjusters must wait to get paid until the insured receives the original copy of the signed contract. Also, public adjusters need to keep proof that they received and submitted the contract for at least 5 years. This will help the policyholder and public adjuster protect themselves from any consequences by providing a copy of the documentation and getting paid in a timely matter.
Why choose Vargas Gonzalez Delombard, LLP?
As the contract terms change, it is essential to review your contracts to protect your business and your clients. This helps homeowners understand the terms during the contract signing process.
Working with one of our attorneys at Vargas Gonzalez Delombard, LLP, we provide honest and quality service. If you have questions or concerns about your contract, book a free consultation today.
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