Over the past few days, I’ve been on the phone around the clock with insureds and public adjusters about what to expect as a result of the most devasting wildfires Southern California has ever seen. The Palisades and Eaton Fires have destroyed over 10,000 structures combined, and many people are still being evacuated from their neighborhoods and businesses.
Many public adjusters are curious about when they can start helping people. California has strict guidelines for public insurance adjusters when soliciting clients during and immediately after loss-producing occurrences, such as wildfires or floods, set forth in California Insurance Code Sections 15027(d) and 15027.1. These laws protect consumers from undue pressure while ensuring public adjusters engage in ethical and professional practices. California’s insurance commissioner, Ricardo Lara, issued an Urgent Notice to all public adjusters days ago to remind them of these solicitation rules.
For property owners, Section 15027(d) offers critical protections during a stressful time. Policyholders should understand their rights and know that they are not required to make immediate decisions about hiring a public adjuster. Instead, they have the legal right to focus on recovery and safety without fear of being pressured.
What Do Sections 15027(d) and 15027.1 Say?
Section 15027(d) prohibits licensed public adjusters from soliciting or attempting to solicit clients for employment during a loss-producing occurrence. The law defines specific conditions under which solicitation is banned:
- Ongoing Dangerous Conditions: Solicitation is prohibited if the circumstances causing the loss, such as fires or flooding, are still present at the property.
- Emergency Responders on Scene: Adjusters cannot approach potential clients if first responders, such as firefighters or police, are actively managing the situation.
- Evacuation Orders in Effect: Public adjusters must refrain from soliciting business at properties where evacuation orders remain active.
Section 15027.1 adds further consumer protections in the aftermath of declared disasters. It requires public adjusters to wait seven calendar days after the conclusion of a catastrophic disaster before soliciting contracts for residential properties in the affected area. This waiting period ensures that homeowners have time to assess their situation and consider their options without facing immediate pressure. However, this restriction does not apply if the public adjuster is contacted directly by the insured or their representative. During this time, adjusters may provide written materials about their services but cannot make personal contact
For now, these rules prohibit public adjusters from soliciting business as the declared disaster is ongoing and therefore, the seven-day waiting period has not even started.
Public adjusters who follow these guidelines showcase their dedication to supporting clients during difficult times and their commitment to upholding high professional standards. This approach not only protects consumers but also strengthens the reputation of the public adjusting profession.
