Proposed Changes to the Public Adjuster Code Attempts to Define “Direct Supervision” of Apprentices – Among Other Changes

The introduction of the Florida Public Adjuster Apprentice requirement has caused many adjusters to seek clarification. With the intent to give some clarification, the Florida Department of Financial Services will be discussing drafted proposed changes to Florida Administrative Code Sections 69B-220.051: Conduct of Public Adjusters and 69B-220.201: Ethical Requirements. The meeting is March 22, 2012 in Tallahassee.

One of the provisions of the current code that has received quite a bit of concern relates to the required supervision public adjusters are to provide to an apprentice. As it stands now, prior to becoming a Florida Licensed Public Adjuster, one may be required to apprentice under a licensed public adjuster for one year. The scope of the supervision and the interaction between the license holder the apprentice has been debated because the current code is unclear- only stating “direct supervision" of the apprentice as the standard.

The apprentice license application also does not explain the apprenticeship supervision requirement except to state that 100 hours of employment per 12 month period are required under the "supervision" of a Florida licensed public adjuster.

The proposed code would add a subsection that defines direct supervision as:

(f) “Direct supervision” means the physical presence of the supervising public adjuster when soliciting or executing a contract for public adjusting services.

Proposed changes for the ethical code have also been drafted. This section of the code pertains to public, independent, and company adjusters. Look for some of these ethical requirements to pair down duties for claims adjusters and field adjusters with respect to the due diligence owed to policyholders who make claims in Florida.

Also, the current ethical code bars an adjuster working for an insurance company from advising a policyholder that hiring a public adjuster will have adverse effect on the claim but the proposed changes delete this section of the code and do not substitute it with new language.

To learn more about these and other proposed changes, including those specific to public adjuster contracts,click here. We welcome your comments on the proposed changes.

Be sure to stay tuned for future posts on rule modifications.