As an advocate for policyholders and somebody who works intently with many public adjusters, I really feel compelled to handle an essential compliance problem 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 shoppers. This observe isn’t solely unethical, it’s unlawful and has felony penalties underneath Florida legislation.
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 making an attempt to set a time for a public adjuster to fulfill 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 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 totally free. Lastly, the decision implied that the caller was not a licensed public adjuster as a result of “now we have licensed adjusters who might 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 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 have interaction in solicitation actions even underneath the supervision of a licensed public adjuster. Which means that any individual initiating and having any contact of substance with potential shoppers – whether or not in individual, 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 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 assessed as a third-degree felony underneath Florida Statute 626.8738. Which means that permitting unlicensed workers to make chilly calls or have interaction in solicitation actions might lead to felony expenses for the individual making the chilly name and the general public adjuster who’s paying for the unlicensed individual to take action.
Whereas unlicensed workers can not have interaction in solicitation, they could reply incoming telephone calls on the public adjuster’s place of work. They’ll deal with purely administrative issues. Workers 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 companies ought to:
- Guarantee all solicitation actions are performed solely by licensed adjusters
- Keep clear documentation of licensing for all workers partaking with consumer 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 respect the need to develop a public adjusting observe. 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 most of these violations. The implications of non-compliance might 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 consumer solicitation should be performed solely by correctly licensed public adjusters. The fame of the general public adjusting career will depend on 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 price of correct compliance is way lower than the potential penalties of violations.
Thought For The Day
Company executives and enterprise house owners want to comprehend that there might be no compromise in the case of ethics, and there are not any straightforward shortcuts to success
—Vivek Wadhwa
