As an advocate for policyholders and somebody who works carefully with many public adjusters, I really feel compelled to handle an necessary compliance difficulty that has not too long ago come to my consideration. Some public adjusting companies appear to be utilizing unlicensed people and cellphone banks to conduct cold-call solicitation of potential purchasers. This apply will not be solely unethical, it’s unlawful and has felony penalties below Florida legislation.
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 injury 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 cellphone 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 spending a dime. Lastly, the decision implied that the caller was not a licensed public adjuster as a result of “now we have licensed adjusters who may also help you.”
In a name with a few respected public adjusters, they spoke about being courted by firms that may make solicitations for them. They expressed concern that others within the trade are having unlicensed individuals inquiring for work, and a few public adjusting companies are paying for leads the place others have already made contact with the potential new consumer.
Florida legislation 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 not interact in solicitation actions even below 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 legitimate public adjuster license.
What constitutes solicitation? Underneath Florida Administrative Code Rule 69B-220.051, solicitation consists of:
- 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 providers.
The stakes for violating these rules are excessive. The unlicensed apply of public adjusting is assessed as a third-degree felony below Florida Statute 626.8738. Because of this permitting unlicensed employees to make chilly calls or interact in solicitation actions may end in felony costs 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 employees can not interact in solicitation, they might reply incoming cellphone calls on the public adjuster’s workplace. They will deal with purely administrative issues. Workers can carry out duties that don’t contain deciphering insurance coverage contracts, explaining public adjuster providers, and getting ready the declare submittal.
To keep up moral requirements and keep away from authorized points, public adjusting companies ought to:
- Guarantee all solicitation actions are performed solely by licensed adjusters
- Keep clear documentation of licensing for all employees participating with consumer contact
- Implement correct coaching and oversight of administrative employees
- By no means use third-party cellphone banks or unlicensed people for outbound solicitation calls, texts, mail or e-mail.
I recognize the will to develop a public adjusting apply. Nonetheless, slicing corners by means of unlicensed solicitation in the end harms the general public adjuster career. The Florida Division of Monetary Providers actively and rightly investigates a majority of these violations. The results of non-compliance could be extreme and finish insurance coverage careers.
Keep 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 whole apply in danger. All consumer solicitation should be performed solely by correctly licensed public adjusters. The fame of the general public adjusting career depends upon strictly following these moral guidelines and statutory legal guidelines.
For these uncertain about compliance necessities, I encourage you to evaluation the related Florida statutes and rules. The short-term price of correct compliance is much lower than the potential penalties of violations.
Thought For The Day
Company executives and enterprise homeowners want to appreciate that there could be no compromise in relation to ethics, and there aren’t any simple shortcuts to success
—Vivek Wadhwa