HB 743 and the Florida Public Adjuster

Below is the language in the proposed bill. Please be aware this bill did not pass. 

In Florida House Bill HB 743 Representative Charles Hood Jr. has proposed that the Florida Statute 626.854 (11)(b) which regulates how much a public adjuster may charge for his services be amended. If passed, this bill would limit the Florida public adjuster from charging a fee which is in excess of 15% of the amount of insurance claim payments made by the insurer for claims that are not based on events that are the subject of a declaration of a state of emergency by the Governor. The HB 743 proposal would reduce the public adjuster's fee cap from 20% to 15%. An excerpt of this proposed statute change is listed below.

Florida Statute 626.854

(11)(a)  If a public adjuster enters into a contract with an insured or claimant to reopen a claim or file a supplemental claim that seeks additional payments for a claim that has been previously paid in part or in full or settled by the insurer, the public adjuster may not charge, agree to, or accept from any source compensation, payment, commission, fee, or any other thing of value based on a previous settlement or previous claim payments by the insurer for the same cause of loss. The charge, compensation, payment, commission, fee, or any other thing of value must be based only on the claim payments or settlement obtained through the work of the public adjuster after entering into the contract with the insured or claimant. Compensation for the reopened or supplemental claim may not exceed 20 percent of the reopened or supplemental claim payment. In no event shall the contracts described in this paragraph exceed the limitations in paragraph (b).

(b)  A public adjuster may not charge, agree to, or accept from any source compensation, payment, commission, fee, or any other thing of value in excess of:

1.  Ten percent of the amount of insurance claim payments made by the insurer for claims based on events that are the subject of a declaration of a state of emergency by the Governor.This provision applies to claims made during the year after the declaration of emergency. After that year, the limitations in subparagraph 2. apply.

2. FifteenTwentypercent of the amount of insurance claim payments made by the insurer for claims that are not based on events that are the subject of a declaration of a state of emergency by the Governor.