Public Adjusting Agreements - Additional Living Expenses and Other 2022 Changes

Public adjusters may provide public adjusting services for Additional Living Expenses (ALE),  provided a separate agreement is entered into between the insured(s), the public adjusting firm or public adjuster as defined in s. 626.854(1)(b), F.S.:

• s. 626.854(10)(d) - Public adjuster compensation may not be based on amounts attributable to additional living expenses, unless such compensation is affirmatively agreed to in a separate agreement that includes a disclosure in substantially the following form: “I agree to retain and compensate the public adjuster for adjusting my additional living expenses and securing payment from my insurer for amounts attributable to additional living expenses payable under the policy issued on my (home/mobile home/condominium unit).”
• s. 626.854(22)(a) - Any following act by a public adjuster, a public adjuster apprentice, or a person acting on behalf of a public adjuster or public adjuster apprentice is prohibited and shall result in discipline as applicable  under this part:
  1. Offering, delivering, receiving, or accepting any compensation, inducement, or reward for the referral of any services for which property insurance proceeds would be used for roofing repairs or replacement.
• s. 626.854(22)(b) - Notwithstanding the fine set forth in s. 626.8698, a public adjuster or public adjuster apprentice may be subject to a fine not to exceed $10,000 per act for a violation of this subsection and a fine not to exceed $20,000 per act for a violation of this subsection that occurs during a state of emergency declared by executive order or proclamation of the Governor pursuant to s. 252.36.
  s. 626.854(22)(c) - A person engages in an act that requires a license as public adjuster or a public adjuster apprentice, or is not otherwise exempt from licensure, is guilty of the unlicensed practice of public adjusting and may be:
  1. subject to all applicable penalties set forth in this part.
  2Notwithstanding subparagraph 1., subject to a fine not to exceed $10,000 per act for a violation of this subsection and a fine not to exceed $20,000 per act for a violation of this subsection that occurs during a state of emergency declared by executive order or proclamation of the Governor pursuant to s. 252.36.

Agency Closures - New Requirements

Effective July 1, 2022, under new statute s. 626.173(1), F.S.,  licensed agencies that elect to permanently cease insurance activities are subject to the following:

A licensed insurance agency that permanently ceases transaction of insurance or ceases those activities for more than 30 days, the agent in charge, the director of the agency, or other officer listed on the original application for licensure must, within 35 days after the agency first ceases the transacting of insurance, do ALL the following:

• Cancel the insurance agency's license by completing and submitting a form prescribed by the department to notify the department of the cancellation of the license.
• Notify all insurers by which the agency or agent in charge is appointed of the agency's cessation of operations, the date on which operations ceased, the identity of any agency or agent to which the agency's current book of business has been transferred, and the method by which agency records may be obtained during the time periods specified in ss. 626.561 and 626.748, F.S.
• Notify all policyholders currently insured by a policy written, produced, or serviced by the agency of the agency's cessation of operations; the date on which operations ceased; and the identity of the agency or agent to which the agency's current book of business has been transferred or, if no transfer has occurred, a statement directing the policyholder to contact the insurance company for assistance in locating a licensed agent to service the policy.
• Notify all premium finance companies through which active policies are financed of the agency's cessation of operations, the date on which operations ceased, and the identity of any agency or agent to which the agency's current book of business has been transferred.

Ensure that all funds held in a fiduciary capacity are properly distributed to the rightful owners. The Department may impose to following enforcement action for an agency’s failure to comply with the agency closure requirements.

An administrative fine against the agent in charge or the director or officer of the agency found to have violated any provision of this section. A proceeding may not be initiated and a fine may not accrue until after the person has been notified in writing of the nature of the violation and the person has been afforded 10 business days to correct the violation but has failed to do so.

An administrative fine may be imposed under s. 626.681, F.S. per violation. In addition to the imposition of an administrative fine, the department may also suspend or revoke the license of the licensee fined.

License Application Questions Must Be Answered Accurately

The Bureau of Licensing reminds new license applicants and current licensee; agents, adjusters, agencies, firms, and other licensees, to answer all questions on license applications accurately. If the applicant provides incomplete, incorrect, or materially untrue information on a license application, that is a violation of the Florida Statutes. Violations are grounds for denial of an application or suspension or revocation of an existing license(s).

Applicants and existing licensees are responsible for the accuracy of the information submitted on the application, whether another person, agency, or other entity else submits the application on behalf of the applicant. We strongly recommend all applicants review their applications for accuracy before submitting an application.

Please visit the Bureau's licensing website for information about the licensing process.

Adjusting Firm License Compliance

The Department continues to receive the obsolete paper registration forms for adjusting firms. Florida Statutes s. 626.8696, requires that all adjusting firms obtain an agency license effective July 1, 2021. Agencies who have not complied with the law should do so immediately. Information and instructions for applying for an adjusting firm license can be reviewed at this link to our website.

Firms that have failed to apply are subject to enforcement action, including fines. There is no fee to apply for a firm license, but some firms may incur costs related to fingerprint requirements.

After applying, please make sure to monitor and update your adjusting firm's MyProfile account with any changes to your email address (and other demographic information required under s. 626.551, F.S.) to make sure you don't miss future emails from us related to the firm's license application.

Updated Adjusting Firm License Requirements

Legislation that became effective July 1, 2022, includes the following additions or changes to Florida Statutes s. 626.8696:

• The name and license number of the designated primary adjuster for each adjusting firm location as required in s. 626.8695.
• The fingerprints of each individual required to be listed in the application under paragraph (a), filed in accordance with s. 626.171(4).

Information about the adjusting firm licensing process can be viewed at this link to our website.

Updated non-resident public adjuster bond requirements

Florida Statutes, s. 626.8732 requires the when applying for a nonresident public adjuster license, the applicant must submit a bond executed and issued by a surety insurer authorized to transact surety business in this state, in the amount of $50,000, conditioned for the faithful performance of his or her duties as a nonresident public adjuster under the license applied for. Thereafter, the applicant shall maintain the bond unimpaired throughout the existence of the license and for 1 year after the expiration or termination of the license.

Extended Jurisdiction Over Former Bail Bond Licensees

Florida Statutes s. 648.46, extends the Department’s jurisdiction over bail bond licensees to include disciplinary action against licensees after the expiration, nonrenewal, or surrender of licensure.

The law does not eliminate the jurisdiction of the Department or Office to investigate and prosecute for a violation committed by a licensee while licensed under this chapter. The prosecution of any matter may be initiated or continued notwithstanding the withdrawal of a complaint.

Public Adjuster Apprentice Appointment

The public adjuster appointment requirements under s. 626.8651, F.S. were updated during this year’s legislative session. The department shall issue an appointment as a public adjuster apprentice to a licensee who: 

• Is licensed as an all-lines adjuster under s. 626.866
• Has filed with the department a bond executed and issued by a surety insurer that is authorized to transact such business in this state in the amount of $50,000, which is conditioned upon the faithful performance of his or her duties as a public adjuster apprentice; and
• Maintains such bond unimpaired throughout the existence of the appointment. The bond must remain in effect for 1 year after the expiration or termination of the license and for at least 1 year after termination of the appointment.
• Florida Statutes s. 626.8651(3), F.S. extends a public adjuster apprentice’s authority to include all activities allowed by a public adjuster or public adjusting firm that employs the apprentice except that an apprentice may not execute contracts for the services of a public adjuster or public adjusting firm. An individual may not be, act as, or hold himself or herself out to be a public adjuster apprentice unless the individual is licensed as an all-lines adjuster and holds a current appointment by a licensed public all-lines adjuster or a public adjusting firm that has designated with the department a primary employs a licensed public adjuster as required.

Non-Resident Public Adjuster’s Bond Qualification

A new requirement has been made to non-resident public adjuster’s qualifications under s. 626.8732(3) F.S.

• At the time of application for license as a nonresident public adjuster, the applicant shall file with the department a bond executed and issued by a surety insurer authorized to transact surety business in this state, in the amount of $50,000, conditioned for the faithful performance of his or her duties as a nonresident public adjuster under the license applied for. Thereafter, the applicant shall maintain the bond unimpaired throughout the existence of the license and for 1 year after the expiration or termination of the license. 

Temporary Limited License Bail Bond Agents 

Changes to Florida Statutes s. 648.355(4), include the removal of the requirement for fingerprints to be certified by an authorized law enforcement officer.

Unaffiliated Insurance Agent - Adjuster Appointment Allowed

The definition of an unaffiliated insurance agent under s. 626.015(12), F.S. has been modified, effective July 1, 2022. The restrictions disallowing the agent to be affiliated with an insurer, agency or agents has been changed, and an unaffiliated agent who also holds an adjuster license may obtain an adjuster appointment:

• “Unaffiliated insurance agent” means a licensed insurance agent, except a limited lines agent, who is self-appointed and who practices as an independent consultant in the business of analyzing or abstracting insurance policies, providing insurance advice or counseling, or making specific recommendations or comparisons of insurance products for a fee established in advance by written contract signed by the parties. An unaffiliated insurance agent may not be affiliated with an insurer, insurer-appointed insurance agent, or insurance agency contracted with or employing insurer-appointed insurance agents. A licensed adjuster who is also an unaffiliated insurance agent may obtain an adjuster appointment in order to adjust claims while holding an unaffiliated appointment on the agent license.

Service Agreement Companies or Salesperson - New Laws Effective March 1, 2023

Recent legislation made changes to s. 634.095, F.S.,

Prohibited acts.—Any service agreement company or salesperson that engages in one or more of the following acts is, in addition to any applicable denial, suspension, revocation, or refusal to renew or continue any appointment or license, guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083:

Issuing or causing to be issued any advertisement that which:
(a) Does not fully disclose in a written advertisement, in at least 12- point, boldfaced type, the name, address, and Florida Company Code license number of the service agreement company.
(b) Does not fully disclose in a radio or television advertisement the full legal name of the licensed salesperson or the service agreement company.
(c) Does not fully identify the soliciting licensed salesperson’s full legal name and license number when the salesperson begins, and the soliciting salesperson’s telephone number when the salesperson concludes, each outbound telephone solicitation. For the purposes of this paragraph, the actual telephone number of the salesperson may be the number on file with the department or the number at which the salesperson may be contacted.

Subsection 624.501(27)(e)2, F.S., requires any title insurance agency licensed in Florida on January 1 of each year to remit an administrative surcharge of $200 to the Florida Department of Financial Services.

All title insurance agencies licensed in Florida on or around January 1 will be sent a courtesy email reminder in early January. To ensure you receive follow-up emails, please log in to the MyProfile account for your title agency and make sure the correct email address is on file. We also recommend you do the same for your individual MyProfile account. Demographic changes made to an agency's profile do not populate the profiles of licensees associated with the agency.

Please verify/update your information to ensure you receive all correspondence from the Department. Failure to open the email sent by the Department containing the administrative surcharge reminder does not release an agency from the January 30 deadline. If you need assistance updating your information, please contact us at AgentLicensing@MyFloridaCFO.com.

Be proactive - do not procrastinate. Failure to pay the surcharge on or before January 30, 2023 may result in administrative action which could include a fine in addition to the original surcharge and/or suspension or revocation of the agency's license. Payment of the surcharge must be made securely online via the title agency's MyProfile account. Paper checks are not accepted.

More information can be found at: www.myfloridacfo.com/Division/Agents/Industry/Laws-Rules/TitleSurcharge.htm