FL Public Adjuster flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Public adjuster license class 6-20

Florida issues the 6-20 license to public adjusters, authorizing them to adjust all lines of insurance on behalf of the insured, never the insurer.

Public adjuster contract rescission

Florida requires a written, signed public adjuster contract that gives the insured three business days to rescind the agreement without penalty.

Public adjuster fee cap

Compensation may not exceed 20 percent of the insurance settlement amount, reduced to 10 percent for claims arising from a declared state of emergency.

Solicitation hours restriction

A public adjuster may not solicit an insured at the insured's residence in Florida before 8 a.m. or after 6 p.m.

Biennial license term

Florida adjuster and public adjuster licenses are issued for two-year terms and must be renewed with required continuing education, including ethics hours.

Unlicensed public adjusting

Negotiating or settling a policyholder's claim for compensation without an active Florida license is a criminal violation and a ground for license denial.

DFS Division of Consumer Services

Florida's Department of Financial Services, Division of Consumer Services, receives and investigates consumer complaints against licensees, including public adjusters.

Indemnity principle

Insurance restores the insured to approximately the pre-loss financial position, and never creates profit or betterment from a covered loss.

Actual cash value formula

ACV equals replacement cost minus depreciation, where depreciation reflects the age, condition, and expected useful life of the damaged item.

Recoverable depreciation

The withheld depreciation portion paid after the insured documents that repair or replacement was completed, usually within a stated time limit such as two years.

NFIP flood limits

Standard National Flood Insurance Program residential coverage provides up to $250,000 for the building and $100,000 for contents, with a 30-day waiting period.

Hurricane percentage deductible

A Florida hurricane deductible is a percentage of Coverage A that applies to named tropical storm or hurricane losses and is tracked on a calendar-year basis.

HO-3 versus HO-5

The HO-3 covers the dwelling on an open-peril basis and personal property on named perils, while the HO-5 covers both on an open-peril basis.

Ordinance or law coverage

Pays additional costs required by building codes when repairing or rebuilding damaged property; Florida forms commonly offer 25 percent or 50 percent of Coverage A.

Proof of loss

A sworn statement from the insured detailing the amount claimed, usually due within 60 days after the insurer's written request.

Appraisal clause

Dispute resolution for the amount of loss only; each party selects a competent appraiser and an umpire resolves differences. Coverage disputes are not appraisable.

Examination under oath

A policy condition allowing the insurer to question the insured under oath about the loss; unreasonable refusal can bar recovery under the policy.

Reservation of rights letter

Written notice that the insurer continues investigating while preserving coverage defenses it may later assert; it does not deny the claim.

Civil Remedy Notice

Filed with Florida DFS, the insurer, and the claimant under F.S. 624.155; the insurer has 60 days to cure before a bad-faith action.

Salvage and subrogation

Salvage is property remaining after a loss that the insurer may take; subrogation lets the insurer pursue a negligent third party after paying the claim.

Roofing square measurement

One roofing square equals 100 square feet of roof area, and 3-tab shingles typically require three bundles per square.

Concrete cubic yards formula

Multiply length by width by depth in feet, then divide by 27 to convert cubic feet into cubic yards of concrete.

Board foot formula

Multiply thickness in inches by width in inches by length in inches, then divide by 12 to obtain board feet of lumber.

Overhead and profit

Typically 10 percent overhead plus 10 percent profit, applied to labor and material line items on a general contractor scope; not charged on taxes.

IICRC S500 water categories

Category 1 is clean water, Category 2 is gray water with contaminants, and Category 3 is grossly contaminated black water requiring protective handling.

Drywall sheet square footage

A 4-by-8-foot panel covers 32 square feet and a 4-by-12-foot panel covers 48 square feet; add tape, joint compound, texture, and waste.

Unfair trade practice statute

F.S. 626.9541 defines unfair methods of competition and unfair or deceptive acts, including specific unfair claim settlement practices by insurers and adjusters.

Fiduciary duty of adjuster

A public adjuster owes the insured loyalty and full disclosure of compensation, and may not serve the insurer on the same claim.

Contractor referral commissions

Public adjusters may not accept money or anything of value from contractors or restoration firms in exchange for referring an insured's repair work.

Misleading adjuster advertising

Advertisements must not imply the public adjuster works for the insurer, a government agency, or a charitable organization, and must be truthful.

Claim interest prohibition

A public adjuster may not acquire an ownership interest in the insured's claim or damaged property, or advance funds against the settlement.

Unfair claim settlement practices

Includes misrepresenting policy terms, failing to investigate promptly, and offering substantially less than the amount ultimately owed on a claim.