Plus, new licensing rules
The insurer accountability bill will soon move to the rule-making realm, investigators arrest an unlicensed hurricane contractor and a public adjuster on fraud charges, new rules are now in effect for emergency adjuster licenses, and just how many are driving with lapsed auto insurance? It’s all in this week’s Property Insurance News.
Insurer Accountability: Florida’s insurer accountability bill, SB 7052, was signed by legislative leaders last Tuesday and presented to the Governor, who is expected to sign it. Insurance industry representatives will now be spending the coming weeks reviewing the bill and developing some regulatory questions to meet with the Office of Insurance Regulation (OIR) on, as regulators begin their rulemaking process that will be part of the law’s implementation. The Governor has also received the Motor Vehicle Glass AOB bill, SB 1002, which he is also expected to sign into law.
Yoel Sainz Fraga mugshot. Courtesy, Miami-Dade County
Public Adjuster Busted: The Department of Financial Services (DFS) announced the arrest of Yoel Sainz Fraga, a licensed Public Adjuster and owner and president of 305 Public Adjuster Corporation in Miami. Fraga allegedly contacted an elderly homeowner through her handyman and convinced her to let him inspect her home, pretending to be a “government inspector.” He said he found damage, tried to get her to sign documents, but the homeowner refused citing the lack of damage. Fraga, without her knowledge or permission, filed a kitchen water damage claim in the amount of $13,000 on her behalf with Citizens Property Insurance Corporation. Fraga is charged with Exploitation of the Elderly, Insurance Fraud, and Grand Theft.
Emergency Adjuster Licensing Rule Revised: DFS, effective yesterday (May 21, 2023), has amended Rule 69B-220.001. Emergency adjusters now include those designated by a Florida authorized insurance company, surplus lines carrier, or licensed independent adjusting firm. Emergency adjusters have to show proof of that authority and a photo ID to policyholders, police, and emergency management personnel. The updated rule also requires those hiring those adjusters to electronically submit their application to DFS and wait until the license has been issued before beginning work. DFS will send notice of any deficiencies in the application. The licenses are valid for six months and must be renewed by DFS for another six months if the emergency condition still exists.
Eric Harris mugshot. Courtesy, Lee Co. Sheriff’s Office
Unlicensed Contractor Busted: DFS has also announced the arrest of Eric Harris of All Phase Renovation & Construction of Lehigh Acres, in Hurricane Ian-ravaged Lee County. A November complaint from a homeowner led DFS investigators to discover the company had engaged in demolition, mold remediation, and insulation removal without a relevant contractor license for either the company or Harris. The company also had no workers’ comp insurance. A second consumer complained in March that they paid Harris $2,800 for demolition and remediation work after Hurricane Ian but that he abandoned the job. Harris is charged with Workers’ Compensation Fraud and Unlicensed Contracting During a State of Emergency.
Driving While Bare: The latest quarterly report by TransUnion indicates that comparison rate shopping rose 7% for automobile insurance and 10% for property insurance in the first quarter of 2023 compared to 2022 Q1. But the number who switched policies is on the decline. One group that wasn’t shopping around for better auto rates were higher risk consumers, with a credit-based insurance score between 300 and 500. Their activity dropped and was the driving force behind another statistic: Nearly 15% of consumers owned or drove a vehicle without insurance coverage, including those who allowed their coverage to lapse. .
LMA Newsletter of 5-22-23
