Public Adjuster Legality

[Jm1988]

I took a position working for a public adjuster in my hometown. The public adjuster hired a team of door knocking salesman to solicit signed contracts to file claims. The line that raises my eyebrow is he also owns a roofing company and runs the clients new roofs through his roofing company. He's made millions in just two years. Is this legal? With the results he has had i have considered this path but unsure of if it would be legal. I think he keeps the roof company in his wife's name.

 

[adjusterjack]

There is no way to answer that question without knowing your state.

 

[Jm1988]

There is no way to answer that question without knowing your state.

Tennessee. My apologies

 

[adjusterjack]

I took a position working for a public adjuster in my hometown. The public adjuster hired a team of door knocking salesman to solicit signed contracts to file claims. The line that raises my eyebrow is he also owns a roofing company and runs the clients new roofs through his roofing company. He's made millions in just two years. Is this legal? With the results he has had i have considered this path but unsure of if it would be legal. I think he keeps the roof company in his wife's name.

It would appear to be legal if disclosed to the client.

Tennessee Public Adjuster Licensing Act of 2006:

56-6-917. Ethical considerations.

(d) A public adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission or other consideration established in the written contract with the insured, unless full written disclosure has been made to the insured.

(e) A public adjuster shall not refer or direct the insured to get needed repairs or services in connection with a loss from any person with whom the public adjuster has a financial interest, or from whom the public adjuster may receive direct or indirect compensation for the referral, unless the interest or compensation is disclosed to the insured.

(g) A public adjuster shall disclose to an insured if the adjuster has any interest or will be compensated by any construction firm, building appraisal firm, motor vehicle repair shop or any other firm that performs any work in conjunction with damages caused by the insured loss. "Firm" includes any individual corporation, partnership, association, joint-stock company or legal entity.

(h) Any compensation or anything of value in connection with an insured's specific loss that will be received by a public adjuster shall be disclosed by the public adjuster to the insured in writing, including the source and amount of the compensation.

As for the door knocking, that appears to be OK, too, after the waiting period:

(b) A public adjuster shall not solicit an insured for two (2) days after any loss and shall not contract with an insured for an additional three (3) days. For catastrophic losses, a public adjuster shall not solicit an insured for seven (7) days after the loss. This subsection (b) shall not apply to commercial insurance.

Those are only parts of the act. You should study the entire licensing act before you go out on your own and/or make sure you and your employer are in compliance, especially if you have your own license.

Part 9 - Tennessee Public Adjuster Licensing Act of 2006 :: 2016 Tennessee Code :: US Codes and Statutes :: US Law :: Justia

Are you just the door knocker or do you handle the claims as well?

 

[Jm1988]

I do the door knocking but after seeing the level of success have considered branching out and obtaining my license

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We have been told to just use the same storm date from 4 months back every time

 

[VolAgent]

I do the door knocking but after seeing the level of success have considered branching out and obtaining my license

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We have been told to just use the same storm date from 4 months back every time

At best that is unethical. Your initial instincts that something is amiss were correct.

 

[adjusterjack]

We have been told to just use the same storm date from 4 months back every time

That part's not only unethical but could also be insurance fraud.