Written by Kimberly Pope | 13 August 2009

Proofs of loss are a required form in most property insurance policies. The proof is an important tool in claims management as it provides the insurance company with the Insured’s formal claim and will comply with the policy condition stating that the Insured must prove their loss.

Further, after receiving the proof of loss, the insurance company is required to formally state any and all objections to the proof of loss and detail submitted.

All proofs of loss must include the following:

• The date and cause of loss;
• The named Insured and/or other interested parties;
• Supporting documentation of the amount of the loss must be attached to the Proof. (This includes the building scope of damage, Content Inventories, Business Interruption and Loss of Use claims).

Effective October 1, 2008, a new law went into effect stating that ALL proofs of loss must contain the “fraud statement” and that statement in its entirety must be listed prominently on every proof of Loss submitted.

Public adjuster contracts; fraud statement.—

All contracts for public adjuster services must be in writing and must prominently display the following statement on the proof of loss: “Pursuant to s. 817.234, Florida Statutes, any person who, with the intent to injure, defraud or deceive any insurer or insured, prepares, presents or causes to be presented, a proof of loss or estimate of cost or repair of damaged property in support f a claim under an insurance policy knowing that the proof of loss ore estimate of claim or repair contains any false, incomplete or misleading information concerning any fact or thing material to the claim commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, Florida Statues.

Written by Kimberly Pope | 12 August 2009

While there is no standard contract for public adjusters doing business in Florida, public adjusters are legally required to have specific wording listed prominently on their contracts with policyholders.

The authoritative source, the Florida Administrative Code, 69B-220.051, Conduct of Public Adjusters;  states that all public adjusters must conform to the Public Adjuster’s Code of Ethics and must ensure that the Code of Ethics is adhered to and its points included on the public adjuster’s contracts. Taken directly from the Code, following are items that every public adjuster should commit to memory:

(6) Required Contract Terms. Public adjusters shall ensure that all contracts for their services contain the following items:

(a) The contract shall legibly state the full name as specified in Department records of the public adjuster signing the contract.

(b) All public adjuster contracts shall show the public adjuster’s:

1. Permanent business address and phone number; and

2. Florida Department license number.

(c) The contract shall show:

1. The insured’s full name and street address;

2. Address of loss;

3. A brief description of the loss;

4. The insured’s insurance company name and policy number, if available.

(d) The contract shall show the date the contract with the public adjuster was actually signed by the insured or claimant.

(e)1. The full compensation to the public adjuster shall be stated in the contract.

2. If the compensation is based on a share of the insurance settlement, the exact percentage shall be specified.

3. Any costs to be reimbursed to the public adjuster out of the proceeds shall be specified in an addendum to the contract.

(7) All contracts for public adjuster services must be in writing. The contract must be signed by the public adjuster who solicited the contract.

(8) No public adjuster may settle a claim unless the terms and conditions of settlement are approved by the insured.

Effective October 1, 2008, a new law went into effect and in addition to the wording being included from the Florida Administrative Code, Florida Statutes state that all public adjuster contracts must contain the “fraud statement” and it must be listed prominently on the contract.

Public adjuster contracts; fraud statement.— All contracts for public adjuster services must be in writing and must prominently display the following statement on the contract: “Pursuant to s. 817.234, Florida Statutes, any person who, with the intent to injure, defraud or deceive any insurer or insured, prepares, presents or causes to be presented, a proof of loss or estimate of cost or repair of damaged property in support f a claim under an insurance policy knowing that the proof of loss ore estimate of claim or repair contains any false, incomplete or misleading information concerning any fact or thing material to the claim commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, Florida Statues.