Yesterday, I submitted comments to Florida’s Department of Financial Services regarding Emergency Rule 69BER24-4. 1 The overwhelming response from insurance professionals, public adjusters, and attorneys shows how this rule impacts the entire claims-handling community.

The emergency rule, while well-intentioned in promoting transparency, creates several practical challenges that could harm Florida policyholders. In my letter to Director Greg Thomas, I highlighted how the current Emergency Rule language could actually promote claim underpayments rather than protect consumers.

The rule’s requirement to maintain all estimate versions is a positive step toward transparency. However, we need to ensure policyholders have immediate access to these estimates and supporting documentation.

A critical concern is the rule’s rigid stance on price modifications. The current language conflicts with Xactimate’s license agreement, which explicitly states that their pricing data should only be used as a baseline. The rule effectively penalizes adjusters for making necessary pricing updates, particularly after catastrophic events when market prices fluctuate significantly.

Perhaps most concerning is how the rule inadvertently delegitimizes licensed contractor estimates. It’s particularly ironic that the same estimation methods required for Florida contractor licensing would be considered unethical under this emergency rule.

To better serve Florida consumers while maintaining claims adjustment integrity, I recommended several modifications:

  • Address non-price modifications in estimates
  • Align pricing requirements with industry standards
  • Recognize licensed contractor estimates
  • Create exceptions for specialized property
  • Ensure policyholder access to all estimate versions

Those who voluntarily took the time to submit thoughtful comments deserve recognition for their dedication to improving Florida’s insurance landscape. Your engagement helps ensure that rules and regulations serve their intended purpose: Protecting Florida consumers while maintaining the integrity of the claims process.

The Department of Financial Services has an opportunity to refine this rule to better serve all stakeholders. By incorporating feedback from industry professionals who work daily in claims adjustment, we can create guidelines that truly protect consumers while allowing for practical and ethical claims handling. We can work toward regulations that promote transparency and fairness while acknowledging the real-world complexities of property insurance claims.

Thought For The Day 

We are bound by ideals that teach us what it means to be citizens. Every child must be taught these ideals. Every citizen must uphold them…I ask you to be citizens. Citizens, not spectators. Citizens, not subjects.
—George W. Bush

1 Emergency Rule 69BER24-4 for 69B-220.201 Ethical Requirements for All Adjusters and Public Adjuster Apprentices.