What Is the “Claim Handling Code of Ethics” in Fort Lauderdale?

Based on the past conduct of property insurance companies in Florida, it’s easy to assume that they do not follow any rules. These companies seem to deny claims for no reason, and many have been accused of fraud in the past. However, there is a set of rules that insurers must follow, and this is the Claim Handling Code of Ethics. With a greater understanding of this ethical code, you can approach a denied property insurance claim in Fort Lauderdale with greater confidence.

The Basics of the Claim Handling Code of Ethics

The Claim Handling Code of Ethics applies to licensed insurance adjusters in Florida, and not necessarily the insurers themselves. Licensed insurance adjusters play an important role in the insurance industry, and these individuals are responsible for assessing claims.

Adjusters must be unbiased and neutral, favoring neither the insurers nor the policyholders. Adjusters may work for insurance companies directly as employees, or they may operate independently. As a property owner, you can also hire a public adjuster who will work on your behalf. All types of adjusters must follow the Code of Ethics in Florida.

All Adjusters Must Be Fair and Honest

Fairness and honesty are mandatory for all adjusters under the Code of Ethics. Specifically, the Code of Ethics states that adjusters must put the interests of the claimants above their own. If there is any kind of conflict of interest that would cause an adjuster to favor one party over the other, this represents a breach of the Code of Ethics.

Adjusters must focus entirely on the facts, and nothing else. They cannot accept bribes, benefits, or any kind of financial incentive that goes beyond their normal and legal compensation.

Adjusters Are Not Allowed to Talk to You Under Certain Circumstances

Some of the most interesting rules involve when an adjuster is allowed to communicate with property owners. For example, an adjuster cannot negotiate with you directly without permission from your attorney (assuming you’ve enlisted the help of a property insurance attorney). They also cannot negotiate with you or interview you if you’re in a state of shock or emotional distress after experiencing property damage.

What Happens if an Adjuster Breaches the Code of Ethics?

If an adjuster breaches this ethical code, they could lose their professional license. They might also face fines. For serious breaches involving blatant fraud or bribery, adjusters might also face criminal charges and incarceration.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Source: 

myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/adjustercodeofethics.pdf?sfvrsn=f4a91f7a_6