Public Adjusters Decry Florida Citizens’ New Plan That Keeps Their Names Off Checks

In the long conflict between insurance carriers and public claims adjusters, Florida’s Citizens Property Insurance Corp. has altered the rules of engagement in a way that could have a big impact on some adjusters’ livelihood.

And a public adjuster group already is mulling a potential legal challenge.

“Nothing is off the table, and I can confirm that every avenue is being explored,” said Nancy Dominguez, managing director of the Florida Association of Public Insurance Adjusters (FAPIA).

She was referring to the association’s recourse after a recent decision by Citizens officials to no longer include adjusters as co-payees on insurance claims payouts.

“… Our policy requires us to pay the insured unless someone other than the insured, such as guardian or other loss payee, is legally entitled to the claims payment,” reads a June 4 draft of a Citizens letter to be sent to public adjusters when they inquire about why they were not included on the claims settlement check.

“Your right to payment is based on a public adjuster’s agreement that is between you and the insured and the insured is liable for the payment of parties with whom he or she contracts, not the insurer,” the Citizens letter explains.

The decision was made by Citizens’ Executive Leadership Team, which includes senior leaders in the state-created insurer of last resort, Citizens’ spokesman Michael Peltier said.

“This procedural change makes it easier for our policyholders and does not impact any contract between a policyholder and their public adjuster, whose fees are governed by statute,” he noted.

He did not say why the change came this year, after years of insurers’ complaints about public adjusters.

The number of public adjusters that may be affected is not clear. But it could be quite a few. Citizens, with some 836,000 policies in force, remains the largest property carrier in Florida.

Dominguez and other public adjusters said they have not heard of other Florida insurers or other states’ last-resort carriers taking similar steps.

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