28861688, 69BER24-4 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 28861688

Notice of Emergency Rule

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

Division of Insurance Agent and Agency Services

Overview

RULE:

69BER24-4

Ethical Requirements for All Adjusters and Public Adjuster Apprentices

SPECIFIC REASONS FOR FINDING AN IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY OR WELFARE:

The threat of disastrous damages to life and property posed by Hurricane Milton and the unprecedented losses from Hurricane Helene has caused an immediate danger to the public health, safety, or welfare of the citizens of Florida. Hurricane Milton is a major hurricane with recorded winds in excess of 150 miles per hour. Property damage from Hurricane Milton will be catastrophic and may result in billions of dollars in property losses. These losses will be largely borne by Florida homeowners and small business owners. Furthermore, Floridians are still suffering from the ongoing effects of Hurricane Helene that destroyed thousands of homes, and displaced thousands of Floridians. Both storms are anticipated to have significant, long lasting, and potentially devastating effects on the Florida property insurance market. Fair and transparent loss estimates and claims adjustments will be crucial to ensure Floridians are properly and fairly compensated under the terms of their property insurance contracts, while also ensuring ongoing insurer solvency after potentially momentous financial losses. The emergency rule provides greater transparency to Florida consumers in estimating losses and claims adjustment by ensuring that property owners can ascertain all parties that have reviewed and amended their loss estimate documentation. Greater transparency will reduce post-storm fraud. The emergency rule is necessary to protect Florida consumers against unfair and deceptive acts in the Florida property insurance market through transparency and communication between the consumer, adjusters, and insurers. Therefore, the Department of Financial Services has found that there is an immediate danger to the public health, safety, or welfare of the citizens of Florida requiring emergency action.

REASON FOR CONCLUDING THAT THE PROCEDURE IS FAIR UNDER THE CIRCUMSTANCES:

This rulemaking is necessitated by the immediate danger to the public health, safety, or welfare to the citizens of Florida caused by untold and potentially ruinous property losses from Hurricane Milton and Hurricane Helene which requires emergency action.  The purpose of this emergency rule is to provide Florida consumers and property insurers with the greatest degree of transparency possible in loss estimation and claims adjustment processes after property losses caused by Hurricane Milton and Hurricane Helene. All statutory and administrative procedures required for the adoption of this emergency rule have been followed.

SUMMARY:

The Agency has found that an immediate danger to the public health, safety, or welfare necessitates this emergency rule. The emergency rule will require adjusters to provide detailed descriptions of any modifications made to estimates of loss throughout the claim’s adjusting process for damages caused by Hurricane Milton. Adjusters will also need to maintain records of modifications made to the estimate of loss, including the detailed descriptions of the changes. This emergency rule will protect Florida consumers by increasing transparency in the claims adjusting process and protect them from inappropriate modifications to the estimate of loss documents that evaluate damages after a property loss.

THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS:

Greg Thomas, Director, Division of Insurance Agent and Agency, (850) 413-5401 or Greg.Thomas@myfloridacfo.com.

PRINT PUBLISH DATE:

10/11/2024 Vol. 50/200

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=69BER24-4&PDate=10/11/2024&Section=4

REFERENCE MATERIALS:

No reference(s).

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