Ethics, Unfair Trade Practices and Public Adjuster Conduct
Standards of conduct
A public adjuster is a fiduciary for the insured: loyalty, honesty, confidentiality, and full disclosure of fees, contract terms, and claim progress. The adjuster may not represent both the insured and the insurer, may not acquire an interest in the claim beyond the agreed fee, may not sign the insured's name, may not settle without the insured's authorization, and may not give legal advice. Advertising must be truthful and may never imply that the adjuster works for a government agency or an insurer.
Unfair trade practices
Chapter 626, Part IX (ss. 626.9521–626.9541) defines unfair or deceptive acts: misrepresentation of policy terms, false advertising, twisting, churning, and - critical for claims personnel - unfair claim settlement practices. These include failing to investigate promptly and thoroughly, failing to affirm or deny coverage within a reasonable time, refusing to pay without a reasonable investigation, failing to explain the basis for a denial, and failing to settle promptly where liability is clear. Remedies include administrative fines, restitution, suspension, and revocation.
Prohibitions specific to public adjusters
No fee sharing with unlicensed persons; no rebates, kickbacks, or referral payments; no solicitation between 6 p.m. and 8 a.m.; no soliciting a policyholder already under contract with another adjuster. Contracts require the three-business-day rescission notice, and fees are capped for declared-emergency claims. Conflicts with repair contractors must be avoided or fully disclosed.
Worked example
A restoration contractor offers the adjuster $1,500 for each signed claim. Accepting is an unlawful inducement and a conflict of interest even if disclosed. Decline in writing, document the offer, and continue adjusting the loss without recommending that contractor.