CFO Jimmy Patronis Issues Emergency Rule to Protect Consumers ahead of Hurricane Milton

TALLAHASSEE, Fla. (October 9, 2024) – Chief Financial Officer (CFO) & State Fire Marshal Jimmy Patronis issued an Emergency Rule to enhance transparency in the claims adjusting process for insurance consumers by requiring adjusters to identify and provide detailed explanations for any changes made to damage estimates. This emergency rule allows the Florida Department of Financial Services to hold insurance adjusters who provide contracted services to insurance companies to the same accountability standards that apply to an insurance company’s in-house adjusters by virtue of Senate Bill 7052 (2023). This week, CFO Patronis also issued an Emergency Order lifting restrictions on Insurance Customer Representatives' ability to conduct business outside the office and continuing education requirements.

CFO Jimmy Patronis said, “During disasters, it's imperative that our insurance professionals and consumers have the tools they need to file insurance claims accurately and quickly. By cutting through red tape before the storm hits, we can give vital guidance that will lead to a smoother claims process for policyholders. After the storm, I expect companies to be responsive to policyholders' needs and to provide the best customer service possible as we work to get people back on their feet. If you or a loved one has insurance questions or complications following Hurricane Milton, please contact my Insurance Consumer Helpline by calling 1-877-MY-FL-CFO (693-5236)."

 Hurricane Milton CFO Emergency Rule 69BER24-4

• The rule prohibits desk adjusters from modifying initial estimates, unless the revised estimate:
• Indicates all estimates of loss that have been modified from any prior estimate,
• Provides a detailed explanation as to why each change was made; and
• Includes the identity of the adjuster who is responsible for each change to an estimate.
  
  
• With respect to adjusting software, the rule:
• Requires estimates to include an itemized, per unit estimate of damage to the property, including itemized information on equipment, materials, labor, and supplies required to effectuate repair.
• Requires estimates to utilize pricing data that consists of unit-cost breakdowns consistent with those that may be expected from a contract or repair company in the applicable geographic market area where a claim occurs.
• Prohibits adjusters from modifying pricing applied by electronic estimating software, unless the adjuster can demonstrate that modification is required to produce an accurate estimate.
• Requires that a written estimate of loss be provided to the insured, including the line-item estimate produced by the electronic estimating software, and if any changes were made, a variation report or similar report identifying changes made by the adjuster, and an explanation of the reason for such changes.
  
  
• Finally, the rule specifies that adjusters need to retain all versions of loss estimates as required by law.

###

About CFO Jimmy Patronis
Chief Financial Officer and State Fire Marshal Jimmy Patronis is a statewide elected official and a member of Florida’s Cabinet who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and X (@FLDFS).

See original press release here.