As an advocate for policyholders and somebody who works intently with many public adjusters, I really feel compelled to handle an necessary compliance problem that has lately come to my consideration. Some public adjusting corporations appear to be utilizing unlicensed people and telephone banks to conduct cold-call solicitation of potential purchasers. This apply just isn’t solely unethical, it’s unlawful and has legal penalties underneath Florida regulation.
Saturday should be chilly name day. I exchanged textual content messages with a revered insurance coverage trade adjuster a few chilly name from an individual soliciting public adjuster work Saturday morning. The soliciting particular person by no means recognized whom he was however was attempting to set a time for a public adjuster to satisfy about harm to the adjuster’s dwelling. When the insurance coverage adjuster lastly recognized who he was, the solicitor hung up. Solicitors ought to perceive that their telephone numbers are traceable.
Jason Hisey posted a few chilly name on his LinkedIn yesterday. The decision is troubling as a result of it began with a sign that the particular person was from “your native claims workplace.” The decision implied that the work and serving to the policyholder is without cost. Lastly, the decision implied that the caller was not a licensed public adjuster as a result of “we’ve got licensed adjusters who may help you.”
In a name with a few respected public adjusters, they spoke about being courted by corporations that may make solicitations for them. They expressed concern that others within the trade are having unlicensed individuals requesting work, and a few public adjusting corporations are paying for leads the place others have already made contact with the potential new shopper.
Florida regulation is crystal clear: the solicitation of public adjusting enterprise for compensation is taken into account a cloth a part of public adjusting and requires correct licensure. Unlicensed individuals can’t interact in solicitation actions even underneath the supervision of a licensed public adjuster. Because of this any particular person initiating and having any contact of substance with potential purchasers – whether or not in particular person, by mail, textual content, or phone – should maintain a sound public adjuster license.
What constitutes solicitation? Beneath Florida Administrative Code Rule 69B-220.051, solicitation contains:
- Initiating contact with any particular person to hunt public adjusting enterprise
- Urging or advising somebody to enter right into a public adjusting settlement
- Making an attempt to have any particular person communicate with a licensed public adjuster about participating companies.
The stakes for violating these laws are excessive. The unlicensed apply of public adjusting is assessed as a third-degree felony underneath Florida Statute 626.8738. Because of this permitting unlicensed workers to make chilly calls or interact in solicitation actions might end in legal prices for the particular person making the chilly name and the general public adjuster who’s paying for the unlicensed particular person to take action.
Whereas unlicensed workers can’t interact in solicitation, they might reply incoming telephone calls on the public adjuster’s office. They will deal with purely administrative issues. Employees can carry out duties that don’t contain decoding insurance coverage contracts, explaining public adjuster companies, and making ready the declare submittal.
To keep up moral requirements and keep away from authorized points, public adjusting corporations ought to:
- Guarantee all solicitation actions are performed solely by licensed adjusters
- Keep clear documentation of licensing for all workers participating with shopper contact
- Implement correct coaching and oversight of administrative workers
- By no means use third-party telephone banks or unlicensed people for outbound solicitation calls, texts, mail or e-mail.
I admire the need to develop a public adjusting apply. Nevertheless, chopping corners by way of unlicensed solicitation in the end harms the general public adjuster career. The Florida Division of Monetary Providers actively and rightly investigates most of these violations. The implications of non-compliance may be extreme and finish insurance coverage careers.
Bear in mind, the position of a licensed insurance coverage skilled is to assist policyholders navigate their claims ethically and legally. Utilizing unlicensed people to solicit enterprise undermines this mission and places a complete apply in danger. All shopper solicitation should be performed solely by correctly licensed public adjusters. The fame of the general public adjusting career is dependent upon strictly following these moral guidelines and statutory legal guidelines.
For these not sure about compliance necessities, I encourage you to overview the related Florida statutes and laws. The short-term value of correct compliance is much lower than the potential penalties of violations.
Thought For The Day
Company executives and enterprise house owners want to appreciate that there may be no compromise with regards to ethics, and there aren’t any simple shortcuts to success
—Vivek Wadhwa
