Unlicensed Practice of Public Adjusting

On February 14, 2020, the Iowa Supreme Court dismissed the case of 33 Carpenters Construction, Inc., (“33 Carpenters”) against State Farm Life and Casualty Company (“State Farm”).1 33 Carpenters approached the insureds after a hailstorm to see if they would allow them to inspect their roof. 33 Carpenters found hail damage and entered into a series of contracts to help the homeowners complete the repairs, including an assignment of benefits (“AOB”).
Continue Reading No Love for the Contractor’s Assignment of Benefits in Iowa

The Supreme Court of Iowa in three opinions1 this week affirmed various rulings which held that 33 Carpenters’ contractual assignment was unenforceable, as it was operating as an unlicensed public adjuster. I wrote about the lower appellate court decision in, Contractor Acted as an Unlicensed Public Adjuster, Notwithstanding Assignment of Claim and Benefits.
Continue Reading Court Affirms Contractor Acted as Unlicensed Public Adjuster

The Win The Storm conference was abuzz about a trio of Iowa cases that ruled void residential restoration contracts.1 The primary lesson to insurance restoration contractors is the promises made in contracts and found in advertisements may lead to contracts being found void pursuant to laws in many states. Contractors can expect insurance companies and possibly their own customers to challenge Assignment of Benefits and other construction contracts where insurance restoration contractors promise to provide services which constitute public adjusting.
Continue Reading Restoration Contractors Need To Be Careful About the Wording of Contracts and Website Advertisements or Risk Not Getting Paid