Public adjusters receive neither the same training, nor are they subject to the same legal and business constraints, as insurance company staff adjusters.

Unlike insurance company adjusters, trained and experienced managers do not necessarily supervise public adjusters.

Insurance company staff adjusters also have their activities regulated through Unfair Trade Practices Laws and Unfair Claims Practices Regulations. No such requirements or sanctions apply to public adjusters.

Because of this lack of supervision, the Alliance of American Insurers backs legislation that requires public adjusters to be licensed. Furthermore, the Alliance backs legislation placing reasonable limits on public adjuster operations, such as preventing them from entering into agreements with insureds within a certain time after a loss, or barring solicitations during nighttime hours.

Such limits and regulation would help weed out the bad apples and serve to improve upon public adjusters “demonic” image.

Kirk Hansen
Director of Claims
Alliance of American Insurers
Downers Grove, Ill.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, April 8, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.