Florida Court Nixes Adjuster 48-Hour Rule

A 2008 Florida law establishing a 48-hour moratorium on public adjusters has been ruled unconstitutional by the Florida Supreme Court on grounds that it restricts commercial speech.

The overturned law had prevented public adjusters them from contacting potential claimants for at least 48 hours after the occurrence of an event.

The decision was a blow to the insurance industry and Chief Financial Officer Jeff Atwater, who appealed a lower court ruling. The association representing Florida public adjusters applauded the ruling. “The ban on solicitation is a violation of public adjusters’ free speech rights — and more importantly, an unfair rule that put policyholders at a disadvantage,” said Harvey Wolfman, president of the Florida Association of Public Insurance Adjusters.

Atwater’s office, however, did not quibble with the ruling. “The office respects the Supreme Court’s authority and its ruling in this case,” said Atwater spokeswoman Alexis Lambert.

The insurance industry sided with Atwater’s challenge because many commercial insurers provide their own adjusters to assist in claims.

“There is no need for a public adjuster who must be paid by the policyholder,” said Sam Miller, vice president of the Florida Insurance Council, an insurer group. “Unlike legal fees in lawsuits against insurers, fees for a public adjuster come from the insurance settlement.”