OPPAGA Releases Public Adjuster Report
Florida’s Office of Program Policy Analysis & Government Accountability has released Report No. 10-06 relating to the regulation of public adjusters in Florida. The title of the report notes that, “Public Adjuster Representation in Citizens Property Insurance Corporation Claims Extends the Time to Reach a Settlement and Also Increases Payments to Citizens’ Policyholders.”
The report provides a brief background of the claims settlement process before setting forth a series of Questions and Answers. The report mentions that the number of public adjusters in Florida has grown from 678 in fiscal year 2003-04 to 2914 in fiscal year 2008-09. Florida also has more public adjusters per capita (15.9 per 100,000 residents) than other states surveyed (with South Carolina being the next highest at 7.3 public adjusters per 100,000 residents). The report notes, however, that the number of complaints against public adjusters has been relatively constant over the last few years. The report also compares several aspects of Florida’s regulatory system to the regulatory schemes in other states.
According to OPPAGA, policyholders represented by a public adjuster submitted 26% of non-catastrophe claims filed with Citizens Property Insurance Corporation in 2008, including 24% of new claims and 54% of re-opened claims. For catastrophe claims, public adjusters represented policyholders in 39% of the files, consisting of 19% of new claims and 57% of re-opened claims. The report mentions that public adjuster representation prolongs claims processing time and results in higher claims settlement. The report does not draw conclusions regarding these results but instead includes an appendix listing reasons cited by public adjusters and insurers.