The Florida Department of Financial Services (DFS) issued an Order dismissing a petition on whether or not people have to be licensed as adjusters or public adjusters to be named appraisers to an insurance coverage appraisal. I beforehand wrote about this challenge in Who Should Be Appraisers to an Appraisal Panel? NAPIA Takes a Stand. I additionally famous an insurance coverage trade chief agreed with my view in Jonathon Held Argues That Appraisers Should Not Have To Be Licensed Adjusters.
The present DFS Order got here after a petition for declaratory reduction was filed by three teams searching for clarification about their instructing that appraisers didn’t need to be licensed. Indeed, not one state requires appraisers to carry an adjuster or public adjuster license.
Citizens Property Insurance filed a movement to intervene within the motion. Citizens argued that appraisers need to be licensed adjusters or public adjusters.
The Order dismissed the petition and Citizens movement, stating partly:
THIS CAUSE got here on for consideration upon receipt of a Petition for Declaratory Statement Before the Department of Financial Services (‘Petition’) from Windstorm Insurance Network, the Insurance Appraisal and Umpire Associates, and the Property Loss Appraisal Network (‘Petitioners’), obtained by the Department of Financial Services, Division of Insurance Agent and Agency Services (‘Department’), on February 23, 2023. On March 21, 2023, Citizen’s Property Insurance Corporation filed a Motion to Intervene in Petitioners’ Petition for Declaratory Statement.
Upon consideration of the Petition, and being duly suggested, the Department finds as follows:
1. The Department of Financial Services has jurisdiction over the subject material.
2. This denial is premised upon the assertions of truth set forth within the Petition. Any modification to these assertions of truth might alter the conclusions on this denial. None of the assertions of truth are admitted by the Department as being true and Petitioner’s questions are being answered as purely hypothetical.
…
[P]ursuant to Rule 28-102.001, Florida Administrative Code, ‘[a] petition for declaratory statement may be used only to resolve questions or doubts as to how the statutes, rules, or orders may apply to a petitioner’s specific circumstances. A declaratory assertion just isn’t the suitable means for figuring out the conduct of one other individual.’…The questions posed by Petitioners search a declaration that may tackle the conduct of many different unlicensed people working as appraisers, licensed adjusters performing as appraisers, and entities that make use of both. The conduct of these third events just isn’t related to Petitioners’ specific set of circumstances set forth within the Petition. Moreover, the Petition expressly implicates the conduct of a particular particular person not associated to Petitioners and their specific circumstances.
…
Accordingly, the Petition for Declaratory Statement and Motion to Intervene are DENIED.
One unusual quirk is that I’ve attended tons of of insurance coverage claims seminars taught by attorneys and claims consultants about appraisal. Yet, no one has ever acknowledged that the legal guidelines require an appraiser to be licensed as an adjuster or public adjuster. I might hope these on the Department of Financial Services contemplate this truth in the event that they intend to push ahead with prosecutions. I might have thought any individual would have a minimum of raised the problem as a result of no lawyer I do know has ever hinted at this view of the legislation till the DFS raised the problem in a prosecution.
The view expressed by the DFS in its prosecution just isn’t acknowledged in any e-book, treatise, or seminar materials wherever. You would suppose consultants instructing this topic of insurance coverage could be mentioning that the insurers and policyholders participating non-licensed individuals to behave as appraisers are aiding and abetting in legal conduct if the DFS place is right.
The individual signing off on the Order for the DFS, Gregory Thomas, is definitely a realized and skilled one that should have a ardour for seeing insurance coverage work. I discovered an article describing his appointment in 2011 as follows:
CFO Atwater additionally appointed Gregory Thomas because the Director of the Department’s Division of Agent and Agency Services. Mr. Thomas most lately served because the Bureau Chief of Education, Advocacy and Research within the Department’s Division of Consumer Services. He has intensive expertise within the insurance coverage trade and holds six skilled designations in insurance coverage, together with Chartered Property Casualty Underwriter and Chartered Life Underwriter.
Perhaps these working towards claims and having information of the historical past of licensing legal guidelines for adjusters can have a frank dialogue with the DFS about why the insurance coverage claims trade has by no means required appraisers to carry an adjuster’s license.
I might be speaking about this challenge with Steven Badger and Bob Norton on the upcoming IAUA convention on June 7-8. Unfortunately, I believe it could be offered out, so these wishing to take a look at different IAUA occasions later this summer time.
Thought For The Day
I’m continuously attempting to have a look at issues from a special view and to place myself into some new views to evolve myself, develop myself, and reinvent myself.
—Kali Uchis