{"id":1504,"date":"2025-10-14T05:43:07","date_gmt":"2025-10-14T05:43:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-fl\/1504\/"},"modified":"2025-10-14T05:43:07","modified_gmt":"2025-10-14T05:43:07","slug":"florida-national-groups-file-suit-over-anti-public-adjuster-endorsements","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-fl\/1504\/","title":{"rendered":"Florida, National Groups File Suit Over \u2018Anti-Public Adjuster\u2019 Endorsements"},"content":{"rendered":"

At least six property insurers in Florida have opened a new front in their battle against public claims adjusters \u2013 policy endorsements that strongly discourage property owners\u2019 use of public adjusters altogether.<\/p>\n

And the National Association of Public Insurance Adjusters and the the Florida Association of Public Insurance Adjusters have filed suit, contending that some of the endorsements are not allowed under Florida statutes.<\/p>\n

\u201cThey\u2019re unfair to the people who are working for the insureds, and they\u2019re illegal,\u201d Jonathan Zachem, general counsel for FAPIA, said at the group\u2019s conference this week in Orlando. \u201cIt\u2019s a clear case of anti-trust and unfair trade practices.\u201d<\/p>\n

Zachem was talking about endorsements now included in some excess and surplus policies offered by Velocity Risk Underwriters, a managing general agent for Interstate Fire and Casualty and for Lloyd\u2019s of London, among others.<\/p>\n

Surplus lines insurers are only lightly regulated by Florida statues and rules, and can offer these endorsements that all but bar public adjusters in claims handling. But four admitted Florida carriers also recently filed for similar but optional endorsements. American Integrity Insurance, Orange Insurance Exchange, Safe Harbor Insurance and US Coastal Property and Casualty Insurance Co. all recently asked the Florida Office of Insurance Regulation to approve forms that grant premium discounts if policyholders agree to avoid the use of public adjusters, an OIR spokesperson said.<\/p>\n

\u201cThese endorsements allow policyholders to choose whether or not they would like to use a public adjuster in the event of a claim, for a discount on their premium,\u201d OIR Press Secretary Shiloh Elliott said in an email.<\/p>\n

Adjusters and FAPIA leaders expect that similar restrictions will eventually be adopted by other Florida property insurers.<\/p>\n

It\u2019s the latest offensive by carriers hoping to muscle public adjusters out of the claims picture. Some insurers and their advocates have long argued that public adjusters, whose fee is a percentage of the insurance payment, can exaggerate the estimated cost of repairs. In June, Florida\u2019s largest carrier, Citizens Property Insurance Corp., adopted a new policy<\/a> that could have an indirect impact: Claims settlement checks no longer include the name of the public adjuster.<\/p>\n

Some carriers have taken other tactics that shift burdens on to insureds and limit payouts, Outgoing FAPIA President Juan Moya said at the conference. These include endorsements by at least four carriers that seek to minimize payments on water-leak losses and restrict payouts on matching materials, such as floor tile, to no more than 1% of the total area covered by that material.<\/p>\n

Last week, a Florida appeals court added another hurdle for insureds and public adjusters: requiring actual cash value estimates before policyholders can file suit for breach of contract by insurers, plaintiffs\u2019 attorneys said.<\/p>\n

\"\"<\/a>Public adjusters are pushing back. FAPIA recently sent a letter to Citizens\u2019 leaders, urging them to rescind the \u201cdangerous new policy\u201d that excludes public adjusters from being named on insurance settlement checks.<\/p>\n

The lawsuit by FAPIA and NAPIA<\/a>, filed in Miami-Dade Circuit Court, contends that anti-public-adjuster endorsements fundamentally violate adjusters\u2019 and insureds\u2019 statutory rights.<\/p>\n

The endorsement language is straightforward:<\/p>\n

\u201cIt is understood and agreed that a condition of this policy is that the named insured shall not hire, engage, retain, contract with, or otherwise utilize the services of a public adjuster, whether or not licensed in the state where the property is located or any other jurisdiction to inspect, evaluate, or adjust any loss covered by this policy,\u201d reads the endorsement in a policy provided by Velocity Risk Underwriters, according to the lawsuit complaint.<\/p>\n

\u201cVelocity also threatens that it will not take any steps to investigate, and it does not investigate, the insured\u2019s loss until the insured provides evidence that it has withdrawn from any representation by a Public Adjuster,\u201d the complaint reads. \u201cThis requirement is plainly coercive for the insured after a loss, when time and attention to the loss is required right away.\u201d<\/p>\n

Some public adjusters in Florida have already been forced to terminate their representations of property owners because of the Velocity endorsement, the suit contends.<\/p>\n

Chip Merlin, a plaintiffs\u2019 attorney who spoke at the FAPIA conference this week, said the endorsements raise new questions about unregulated surplus lines\u2019 free rein to limit coverage.<\/p>\n

\u201cIt doesn\u2019t have to be that way,\u201d Merlin said. \u201cState regulators need to look at more financial regulations for surplus lines.\u201d<\/p>\n

Officials with Velocity Risk Underwriters, owned by the Ryan Specialty brokerage since February, could not be reached about the FAPIA lawsuit.<\/p>\n

\n Topics
\n Lawsuits<\/a>
\n Florida<\/a>\n <\/p>\n

Interested in Lawsuits?<\/p>\n

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