As an advocate for policyholders and somebody who works intently with many public adjusters, I really feel compelled to deal with 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 telephone banks to conduct cold-call solicitation of potential purchasers. This observe just isn’t solely unethical, it’s unlawful and has prison penalties below Florida regulation.
Saturday should be chilly name day. I exchanged textual content messages with a revered insurance coverage trade adjuster a couple of chilly name from an individual soliciting public adjuster work Saturday morning. The soliciting individual by no means recognized whom he was however was attempting to set a time for a public adjuster to fulfill about injury to the adjuster’s residence. 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 couple of chilly name on his LinkedIn yesterday. The decision is troubling as a result of it began with a sign that the individual 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 “we’ve got licensed adjusters who will help you.”
In a name with a few respected public adjusters, they spoke about being courted by corporations that can make solicitations for them. They expressed concern that others within the trade are having unlicensed individuals asking for work, and a few public adjusting companies 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 have interaction in solicitation actions even below the supervision of a licensed public adjuster. Because of this any individual initiating and having any contact of substance with potential purchasers – whether or not in individual, 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 individual to hunt public adjusting enterprise
- Urging or advising somebody to enter right into a public adjusting settlement
- Making an attempt to have any individual communicate with a licensed public adjuster about partaking companies.
The stakes for violating these laws are excessive. The unlicensed observe of public adjusting is classed as a third-degree felony below Florida Statute 626.8738. Because of this permitting unlicensed employees to make chilly calls or have interaction in solicitation actions might lead to prison prices for the individual making the chilly name and the general public adjuster who’s paying for the unlicensed individual to take action.
Whereas unlicensed employees can’t have interaction 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 getting ready the declare submittal.
To take care of moral requirements and keep away from authorized points, public adjusting companies ought to:
- Guarantee all solicitation actions are carried out solely by licensed adjusters
- Preserve clear documentation of licensing for all employees partaking with shopper contact
- Implement correct coaching and oversight of administrative employees
- By no means use third-party telephone banks or unlicensed people for outbound solicitation calls, texts, mail or electronic mail.
I recognize the will to develop a public adjusting observe. Nevertheless, chopping corners by way of unlicensed solicitation finally harms the general public adjuster career. The Florida Division of Monetary Companies actively and rightly investigates some of these violations. The results of non-compliance could be extreme and finish insurance coverage careers.
Bear in mind, the function 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 observe in danger. All shopper solicitation should be carried out 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 uncertain 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 homeowners want to comprehend that there could be no compromise in relation to ethics, and there are not any simple shortcuts to success
—Vivek Wadhwa
