The Market Regulation Bureau of the Iowa Insurance Division has put together information listed below identifying activity consistent with unlicensed public adjusting. Iowa Code §§505.8, 507B, and 522C provide the Division the authority to pursue disciplinary actions against individuals and companies acting as unlicensed public adjusters.
Iowa Code §522C.2(7) defines a public adjuster as follows:
- “Public adjuster” means any person who for compensation or any other thing of value acts on behalf of an insured by doing any of the following:
- Acting for or aiding an insured in negotiating for or effecting the settlement of a first party claim for loss or damage to real or personal property of the insured.
- Advertising for employment as a public adjuster of first-party insurance claims or otherwise soliciting business or representing to the public that the person is a public adjuster of first-party insurance claims for loss or damage to real or personal property of an insured.
- Directly or indirectly soliciting business investigating or adjusting losses or advising an insured about first-party claims for loss or damage to real or personal property of the insured.
Any person or company found to be acting as an unlicensed public adjuster may be subject to both administrative action and criminal sanctions.
Specifically, the Market Regulation Bureau has found some companies state, offer, present, or advertise that their company will become involved with the consumer's insurance company by negotiating for or effecting the consumer’s insurance claim.
No entity (including your agents, representatives, employees and officers) may directly or indirectly:
- Act for or aid an insured in negotiating for or effecting the settlement of any first-party claim for loss or damage to real or personal property of the insured.
- Advertise for employment as a public adjuster of first-party insurance claims or otherwise solicit business or representing to the public that the person is a public adjuster of first-party insurance claims for loss or damage to real or personal property of an insured.
- Directly or indirectly solicit business investigating or adjusting losses or advising an insured about first-party claims for loss of damage to real or personal property of the insured.
Any and all agents, representatives, employees, and officers CANNOT engage in the following conduct:
- Initiating, handling, negotiating or otherwise taking any direct or indirect role in effecting settlement of any Iowa Insured’s insurance claim, excepting any activity that is legally permissible;
- Reviewing a consumer’s insurance contract.
- Giving advice to a consumer on provisions of their insurance contract including demanding appraisal.
- Choosing an appraiser or public adjuster to handle a consumer’s claims.
- Directly or indirectly advertising, marketing, or otherwise holding themselves out as public adjusters or as providing any public adjuster services as defined under Iowa Code 522C.2(7). This prohibition applies to any published statement on the contractor’s website, and any social media profiles owned or controlled by contractors and/or any of their agents, representatives, employees and officers
It is a violation of Iowa Code and/or Iowa Administrative Rules when an unlicensed individual or unlicensed company uses terms or phrases including but not limited to the following:
- We are insurance claim experts.
- We are an advocate for you against your insurance company.
- At (Company name) we advocate for homeowners.
- Committed to providing the best roofing solutions and insurance services.
- At (Company name) we’ll assist you with the claims process to ensure you get your full payment.
- It is our responsibility to ensure that your claim is successfully submitted to the insurance company.
- Our company is well equipped with experts who will help you in negotiations with the insurance company to make sure you get a good price for all your repairs.
- We can interpret insurance coverage and assist with line-of-sight settlements with your insurance carrier.
- Our knowledgeable insurance claim specialists work through an easy claims process to help you get covered by insurance.
- Our Claim Specialists are here to take care of your insurance claim.
- Contractor Insured Authorization: The purpose of this authorization is to enable (Company name) to speak with the below named insurance company regarding the claim listed below.
- (Company name) has trained professionals who will meet with your insurance adjuster, review the damaged areas, pursue your best interests, and help you through the entire insurance claim process.
Actions you CAN take include:
- Soliciting and offering repair or reconstruction services to homeowners or business owners;
- Offering an opinion to an insured homeowner or business owner as to whether damage was possibly caused by wind, hail, storm or other incident normally covered by an insurance policy;
- Preparing an estimate and scope of work for the loss;
- Discussing with the customer the estimate or scope of work;
- Recommending to an insured homeowner or business owner that the policyholder file an insurance claim with their insurer;
- Attending any inspection of the damage by an insurer’s adjuster;
- Answering questions the policyholder or insurer’s adjuster has about the estimates.
Actions to be taken by companies that may be in violation of Iowa Code at this time:
The Division requires companies and their staff to review the business practices to ensure the company and its staff DO NOT act as unlicensed public adjusters when engaging in work involving an insurance claim.
- Remove all wording from your advertising, webpages, social media accounts, flyers, postcards, handouts, vehicles, etc. that infers or represents that a company will perform the actions/duties of a public adjuster when you are NOT a licensed public adjuster in the State of Iowa.
- Remove all wording or references associated with the company and/or staff being “insurance claim experts” or other similar wording that would give the impression your company and its staff will be advocating or negotiating on behalf of the Iowa consumers regarding an insurance claim.
- Refrain from “partnering” with, entering into a contract with, or otherwise working in concert with a public adjuster.
- Review all the company contracts/agreements used in the State of Iowa, to confirm that all the contracts/agreements being used are in compliance with Iowa Code §§103A.71 and 515.137A.
- If a contractor, individual or company, obtains a Public Adjuster license they cannot be the contractor and Public Adjuster on the same project.
- Adding the following "Disclaimer" to all Solicitations, Advertising, Social Media, Contracts and/or Agreements so all Iowa Consumers are advised:
NOTICE: (Name of Contractor) is not a public adjuster. (Name Contractor) is not responsible for obtaining approval of your homeowner's insurance claim. (Name of Contractor) will not negotiate your policy rights with your insurance company. If a dispute arises with your insurance company over the price and scope of repairs, it is your responsibility as the insured, not (Name Contractor) , to negotiate with your insurance company. You are responsible for reviewing your insurance policy.
This information on this page serves to notify your company and staff about what a contractor CAN and CANNOT do.
The documents below provide the necessary information to aid your company and its staff in remaining compliant with Iowa Code §§103A.71 and 515.137A, regarding contractor “contracts/agreements” with Iowa consumers that are required to contain language set out in the statute designed to protect consumers.
These statues also carry their own consequences under State of Iowa consumer protection laws within Iowa Code §714.16 which deems violation of these statues as an unlawful practice.
Note: The Iowa Insurance Division considers any company or individual that performs any related insurance restoration or repairs to be a contractor which includes but is not limited to the following examples: roofing, siding, gutter, general construction or restoration and remodeling, storm damage repair, emergency storm repair, moving companies, tree care, and any other business/individual in which a consumer hires to repair or oversee commercial or residential construction projects.