More States Mandate Use Of Licensed Public Adjusters For Insurance Claims

Originally published by Jeff Raizner.

The insurance industry is thankfully continuing to experience a growing trend toward the use of licensed professionals, such as public adjusters and/or lawyers, throughout the claims process for policyholders. The movement was spurred by the questionable operating practices of unlicensed claims operators. This year alone, state legislatures in Florida, Texas, Louisiana, and other states passed bills to limit the circumstances under which anyone but a licensed public adjuster can negotiate property damage claims on behalf of a policyholder.

Licensed Public Adjusters Help Consumers

“I think the goal is to eliminate the bad actors that practice public adjusting, either licensed or unlicensed,” National Association of Public Insurance Adjusters (NAPIA) President Jeff O’Connor said. By requiring public adjusters to be licensed and registered, states put policyholders in the hands of reputable businesses instead of transient and fraudulent operations. Many scammers are out there just waiting to cheat responsible insurance policyholders out of their money, some via the unauthorized practice of public adjusting (UPPA), a serious problem that harms insurance consumers.

While insurance carriers try to make noise about licensed adjusters inflating claims, the reality is it is in the insurer’s best interest to keep the market flush with imposters as it keeps their own costs down. With disreputable providers working the claims market, insurance companies pay out less often and thus save money while their insured suffer the aftereffects of fraud. Licensed public adjusters are better equipped to estimate the costs related to property loss than the average consumer, and therefore better able to provide insurance companies with an accurate assessment of the claim.

The insurer’s desire to protect their bottom line stands in stark conflict with society’s interest in keeping its consumers, including policyholders, safe. The friction between insurance carriers and public adjusters shouldn’t exist if both want what’s best for those who pay their insurance premiums. Those on the side of the insurers claim to want to protect policyholders. The carriers’ advocates allege the insured will actually lose money on valid damage claims if they hire public adjusters because they inflate claims to increase their fees, which are generally a percentage of the amount the insurer pays.

Insurance Claims Lawyers

The insurance recovery lawyers at Raizner Law have extensive experience working with clients who have been underpaid, paid late, or wrongfully denied by their insurance companies. We have succeeded in recovering what our clients were entitled to under their policies, so let us help you too. To discuss your situation with our team of trusted experts, contact Raizner Law today for a free consultation.

The post More States Mandate Use Of Licensed Public Adjusters For Insurance Claims appeared first on Raizner Slania LLP.

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