Currently before the Florida Supreme Court is a case challenging the constitutionality of Section 626.854(6) of the Florida Statutes, which imposes restrictions on the solicitation of business by public adjusters within the 48 hours immediately following an event that may become the subject of a claim under an insurance policy. A decision is expected within weeks.

Numerous US jurisdictions restrict public adjusters’ efforts to solicit clients during and after a loss-producing occurrence, including California, Delaware, the District of Columbia, Idaho, Kansas, Louisiana, New Hampshire, North Carolina, Tennessee, and Texas. If Florida’s highest court strikes down the statute, the decision will likely prompt challenges to similar limitations in other jurisdictions. At a minimum, the industry – particularly property carriers and their reinsurers – should be prepared to respond to more aggressive claims presentments, and more contentious adjustments of any loss.

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