It has also been brought to my attention that some insurers are refusing to communicate with their policyholders if the policyholder has hired a public adjuster. This is not allowed. Insurers must always maintain an open line of communication with their policyholders, and the presence of a public adjuster is irrelevant to that obligation.<\/p>\n

Insurers are reminded that public adjusters are prohibited from rendering legal advice to the insured, including legal advice regarding policy provisions or coverage issues1, and otherwise engaging in the unauthorized practice of law.<\/p>\n

Insurers should be cognizant that public adjusters are very different from attorneys when retained to assist a policyholder. Their involvement does not import the type of attorney-client relationship that would impede direct communications by an insurer with their policyholder. Insurers are not relieved of their obligations to communicate with their policyholder because of the involvement of a public adjuster.<\/p><\/blockquote>\n

I have been very careful to warn public adjusters that any insurance adjuster or insurance company claims representative, including insurance company attorneys, could report them to the Louisiana Department of Insurance and the Louisiana Bar if they are negotiating a claim for the policyholders. At the same time, insurers are not relieved of adjusting and settling claims where public adjusters were retained. Public adjusters should be aware that the practice of law is currently defined much broader in Louisiana than other states. The Bulletin expressly warns of this without saying precisely what actions constitute the practice of law.<\/p>\n

Proofs of loss were also addressed in the Bulletin:<\/p>\n