| 1 | Representative Long offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 2245 and 2246, insert: |
| 5 | Section 16. Section 626.854, Florida Statutes, is amended |
| 6 | to read: |
| 7 | 626.854 "Public adjuster" defined; prohibitions.--The |
| 8 | Legislature finds that it is necessary for the protection of the |
| 9 | public to regulate public insurance adjusters and to prevent the |
| 10 | unauthorized practice of law. |
| 11 | (1) A "public adjuster" is any person, except a duly |
| 12 | licensed attorney at law as hereinafter in s. 626.860 provided, |
| 13 | who, for money, commission, or any other thing of value, |
| 14 | prepares, completes, or files an insurance claim form for an |
| 15 | insured or third-party claimant or who, for money, commission, |
| 16 | or any other thing of value, acts or aids in any manner on |
| 17 | behalf of an insured or third-party claimant in negotiating for |
| 18 | or effecting the settlement of a claim or claims for loss or |
| 19 | damage covered by an insurance contract or who advertises for |
| 20 | employment as an adjuster of such claims, and also includes any |
| 21 | person who, for money, commission, or any other thing of value, |
| 22 | solicits, investigates, or adjusts such claims on behalf of any |
| 23 | such public adjuster. |
| 24 | (2) This definition does not apply to: |
| 25 | (a) A licensed health care provider or employee thereof |
| 26 | who prepares or files a health insurance claim form on behalf of |
| 27 | a patient. |
| 28 | (b) A person who files a health claim on behalf of another |
| 29 | and does so without compensation. |
| 30 | (3) A public adjuster may not give legal advice. A public |
| 31 | adjuster may not act on behalf of or aid any person in |
| 32 | negotiating or settling a claim relating to bodily injury, |
| 33 | death, or noneconomic damages. |
| 34 | (4) For purposes of this section, the term "insured" |
| 35 | includes only the policyholder and any beneficiaries named or |
| 36 | similarly identified in the policy. |
| 37 | (5) A public adjuster may not directly or indirectly |
| 38 | through any other person or entity solicit an insured or |
| 39 | claimant by any means except on Monday through Saturday of each |
| 40 | week and only between the hours of 8 a.m. and 8 p.m. on those |
| 41 | days. |
| 42 | (6) A public adjuster may not directly or indirectly |
| 43 | through any other person or entity initiate contact or engage in |
| 44 | face-to-face or telephonic solicitation or enter into a contract |
| 45 | with any insured or claimant under an insurance policy until at |
| 46 | least 48 hours after the occurrence of an event that may be the |
| 47 | subject of a claim under the insurance policy unless contact is |
| 48 | initiated by the insured or claimant. |
| 49 | (7) An insured or claimant may cancel a public adjuster's |
| 50 | contract to adjust a claim without penalty or obligation within |
| 51 | 3 business days after the date on which the contract is executed |
| 52 | or within 3 business days after the date on which the insured or |
| 53 | claimant has notified the insurer of the claim, by phone or in |
| 54 | writing, whichever is later. The public adjuster's contract |
| 55 | shall disclose to the insured or claimant his or her right to |
| 56 | cancel the contract and advise the insured or claimant that |
| 57 | notice of cancellation must be submitted in writing and sent by |
| 58 | certified mail, return receipt requested, or other form of |
| 59 | mailing which provides proof thereof, to the public adjuster at |
| 60 | the address specified in the contract; provided, during any |
| 61 | state of emergency as declared by the Governor and for a period |
| 62 | of 1 year after the date of loss, the insured or claimant shall |
| 63 | have 5 business days after the date on which the contract is |
| 64 | executed to cancel a public adjuster's contract. |
| 65 | (8) It is an unfair and deceptive insurance trade practice |
| 66 | pursuant to s. 626.9541 for a public adjuster or any other |
| 67 | person to circulate or disseminate any advertisement, |
| 68 | announcement, or statement containing any assertion, |
| 69 | representation, or statement with respect to the business of |
| 70 | insurance which is untrue, deceptive, or misleading. |
| 71 | (9) A public adjuster, a public adjuster apprentice, or |
| 72 | any person or entity acting on behalf of a public adjuster or |
| 73 | public adjuster apprentice may not give or offer to give a |
| 74 | monetary loan or advance to a client or prospective client. |
| 75 | (10) A public adjuster, public adjuster apprentice, or any |
| 76 | individual or entity acting on behalf of a public adjuster or |
| 77 | public adjuster apprentice may not give or offer to give, |
| 78 | directly or indirectly, any article of merchandise having a |
| 79 | value in excess of $25 to any individual for the purpose of |
| 80 | advertising or as an inducement to entering into a contract with |
| 81 | a public adjuster. |
| 82 | (11)(a) If a public adjuster enters into a contract with |
| 83 | an insured or claimant to reopen a claim or to file a |
| 84 | supplemental claim that seeks additional payments for a claim |
| 85 | that has been previously paid in part or in full or settled by |
| 86 | the insurer, the public adjuster may not charge, agree to, or |
| 87 | accept any compensation, payment, commission, fee, or other |
| 88 | thing of value based on a previous settlement or previous claim |
| 89 | payments by the insurer for the same cause of loss. The charge, |
| 90 | compensation, payment, commission, fee, or other thing of value |
| 91 | may be based only on the claim payments or settlement obtained |
| 92 | through the work of the public adjuster after entering into the |
| 93 | contract with the insured or claimant. The contracts described |
| 94 | in this paragraph are not subject to the limitations in |
| 95 | paragraph (b). |
| 96 | (b) A public adjuster may not charge, agree to, or accept |
| 97 | any compensation, payment, commission, fee, or other thing of |
| 98 | value in excess of: |
| 99 | 1. Ten percent of the amount of insurance claim payments |
| 100 | by the insurer for claims based on events that are the subject |
| 101 | of a declaration of a state of emergency by the Governor. This |
| 102 | provision applies to claims made during the period of 1 year |
| 103 | after the declaration of emergency. |
| 104 | 2. Twenty percent of the amount of all other insurance |
| 105 | claim payments. |
| 106 | (12) Each public adjuster shall provide to the claimant or |
| 107 | insured a written estimate of the loss to assist in the |
| 108 | submission of a proof of loss or any other claim for payment of |
| 109 | insurance proceeds. The public adjuster shall retain such |
| 110 | written estimate for at least 5 years and shall make such |
| 111 | estimate available to the claimant or insured and the department |
| 112 | upon request. |
| 113 | (13) A public adjuster, public adjuster apprentice, or any |
| 114 | person acting on behalf of a public adjuster or apprentice may |
| 115 | not accept referrals of business from any person with whom the |
| 116 | public adjuster conducts business if there is any form or manner |
| 117 | of agreement to compensate the person, whether directly or |
| 118 | indirectly, for referring business to the public adjuster. A |
| 119 | public adjuster may not compensate any person, except for |
| 120 | another public adjuster, whether directly or indirectly, for the |
| 121 | principal purpose of referring business to the public adjuster. |
| 122 |
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| 123 | The provisions of subsections (5)-(13) (5)-(12) apply only to |
| 124 | residential property insurance policies and condominium |
| 125 | association policies as defined in s. 718.111(11). |
| 126 | Section 17. Paragraph (e) of subsection (1) of section |
| 127 | 626.865, Florida Statutes, is amended to read: |
| 128 | 626.865 Public adjuster's qualifications, bond.-- |
| 129 | (1) The department shall issue a license to an applicant |
| 130 | for a public adjuster's license upon determining that the |
| 131 | applicant has paid the applicable fees specified in s. 624.501 |
| 132 | and possesses the following qualifications: |
| 133 | (e) Has passed the required written examination. |
| 134 | Section 18. Section 626.8651, Florida Statutes, is amended |
| 135 | to read: |
| 136 | 626.8651 Public adjuster apprentice license; |
| 137 | qualifications.-- |
| 138 | (1) The department shall issue a license as a public |
| 139 | adjuster apprentice to an applicant who is: |
| 140 | (a) A natural person at least 18 years of age. |
| 141 | (b) A United States citizen or legal alien who possesses |
| 142 | work authorization from the United States Bureau of Citizenship |
| 143 | and Immigration Services and is a resident of this state. |
| 144 | (c) Trustworthy and has such business reputation as would |
| 145 | reasonably ensure that the applicant will conduct business as a |
| 146 | public adjuster apprentice fairly and in good faith and without |
| 147 | detriment to the public. |
| 148 | (2) All applicable license fees, as prescribed in s. |
| 149 | 624.501, must be paid in full before issuance of the license. |
| 150 | (3) The applicant must have passed the required written |
| 151 | examination before issuance of the license. |
| 152 | (4) At the time of application for license as a public |
| 153 | adjuster apprentice, each applicant must have completed the |
| 154 | training and received the Accredited Claims Adjuster designation |
| 155 | which provides experience, training, and instruction concerning |
| 156 | the adjusting of damages and losses under insurance contracts, |
| 157 | other than life and annuity contracts, provides education on the |
| 158 | terms and effects of the provisions of those types of insurance |
| 159 | contracts, and provides knowledge of the laws of this state |
| 160 | relating to such contracts as to enable and qualify him or her |
| 161 | to engage in the business of a public adjuster apprentice fairly |
| 162 | and without injury to the public or any member of the public |
| 163 | with whom the applicant may conduct business as a public |
| 164 | adjuster apprentice. |
| 165 | (5)(3) At the time of application for license as a public |
| 166 | adjuster apprentice, the applicant shall file with the |
| 167 | department a bond executed and issued by a surety insurer |
| 168 | authorized to transact such business in this state in the amount |
| 169 | of $50,000, conditioned upon the faithful performance of his or |
| 170 | her duties as a public adjuster apprentice under the license for |
| 171 | which the applicant has applied, and thereafter maintain the |
| 172 | bond unimpaired throughout the existence of the license and for |
| 173 | at least 1 year after termination of the license. The bond shall |
| 174 | be in favor of the department and shall specifically authorize |
| 175 | recovery by the department of the damages sustained in case the |
| 176 | licensee commits fraud or unfair practices in connection with |
| 177 | his or her business as a public adjuster apprentice. The |
| 178 | aggregate liability of the surety for all such damages may not |
| 179 | exceed the amount of the bond, and the bond may not be |
| 180 | terminated by the issuing insurer unless written notice of at |
| 181 | least 30 days is given to the licensee and filed with the |
| 182 | department. |
| 183 | (6)(4) A public adjuster apprentice shall complete at a |
| 184 | minimum 100 hours of employment per month for 12 months of |
| 185 | employment under the supervision of a licensed and appointed |
| 186 | all-lines public adjuster in order to qualify for licensure as a |
| 187 | public adjuster. The department may adopt rules that establish |
| 188 | standards for such employment requirements. |
| 189 | (7)(5) An appointing public adjusting firm shall maintain |
| 190 | no more than 12 public adjuster apprentices simultaneously; |
| 191 | however, a supervising public adjuster shall be responsible for |
| 192 | no more than 3 public adjuster apprentices simultaneously and |
| 193 | accountable for the acts of all a public adjuster apprentices |
| 194 | that apprentice which are related to transacting business as a |
| 195 | public adjuster apprentice. |
| 196 | (8)(6) An apprentice license is effective for 18 months |
| 197 | unless the license expires due to lack of maintaining an |
| 198 | appointment; is surrendered by the licensee; is terminated, |
| 199 | suspended, or revoked by the department; or is canceled by the |
| 200 | department upon issuance of a public adjuster license. The |
| 201 | department may not issue a public adjuster apprentice license to |
| 202 | any individual who has held such a license in this state within |
| 203 | 2 years after expiration, surrender, termination, revocation, or |
| 204 | cancellation of the license. |
| 205 | (9)(7) After completing the requirements for employment as |
| 206 | a public adjuster apprentice, the licensee may file an |
| 207 | application for a public adjuster license. The applicant and |
| 208 | supervising public adjuster or public adjusting firm must each |
| 209 | file a sworn affidavit, on a form prescribed by the department, |
| 210 | verifying that the employment of the public adjuster apprentice |
| 211 | meets the requirements of this section. |
| 212 | (10)(8) In no event shall a public adjuster apprentice |
| 213 | licensed under this section perform any of the functions for |
| 214 | which a public adjuster's license is required after expiration |
| 215 | of the public adjuster apprentice license without having |
| 216 | obtained a public adjuster license. |
| 217 | (11)(9) A public adjuster apprentice has the same |
| 218 | authority as the licensed public adjuster or public adjusting |
| 219 | firm that employs the apprentice except that an apprentice may |
| 220 | not execute contracts for the services of a public adjuster or |
| 221 | public adjusting firm and may not solicit contracts for the |
| 222 | services except under the direct supervision and guidance of the |
| 223 | supervisory public adjuster. An individual may not be, act as, |
| 224 | or hold himself or herself out to be a public adjuster |
| 225 | apprentice unless the individual is licensed and holds a current |
| 226 | appointment by a licensed public all-lines adjuster or a public |
| 227 | adjusting firm that employs a licensed all-lines public |
| 228 | adjuster. |
| 229 | Section 19. Subsection (7) is added to section 627.7011, |
| 230 | Florida Statutes, to read: |
| 231 | 627.7011 Homeowners' policies; offer of replacement cost |
| 232 | coverage and law and ordinance coverage.-- |
| 233 | (7) This section does not prohibit an insurer from |
| 234 | exercising its right to repair damaged property in compliance |
| 235 | with its policy and s. 627.702(7). |
| 236 |
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| 237 | ----------------------------------------------------- |
| 238 | T I T L E A M E N D M E N T |
| 239 | Between lines 118 and 119, insert: |
| 240 | amending s. 626.854, F.S.; prohibiting public adjusters from |
| 241 | compensating, or agreeing to compensate, any person for |
| 242 | referrals of business; providing an exception; amending s. |
| 243 | 626.865, F.S.; revising qualifications for public adjuster's |
| 244 | license; deleting requirement that applicant for public |
| 245 | adjuster's license pass a written examination; amending s. |
| 246 | 626.8651, F.S.; revising qualifications for public adjuster |
| 247 | apprentice license; requiring that applicant for public adjuster |
| 248 | apprentice license pass a written examination, complete certain |
| 249 | training, and receive a specified designation; limiting the |
| 250 | number of public adjuster apprentices that may appointed by a |
| 251 | public adjusting firm or supervised by a supervising public |
| 252 | adjuster; amending s. 627.7011, F.S.; specifying that provisions |
| 253 | regulating homeowners' policies do not prohibit insurers from |
| 254 | repairing damaged property; |