What happened these few decades of CLINTON/BUSH/OBAMA dismantling all public agencies and expanding US corporations overseas to global corporations---killing local small and regional businesses----is the growth of the TRADE ASSOC FOR PUBLIC ADJUSTERS to being a GLOBAL CORPORATION itself. This happened to HUMAN RESOURCES as well.
'Difference between Public and Private Sector
The major difference between the public and private sector is their motive to exist. The public sector is present to cater to the citizens of a country and profit motive is generally not the criteria for them to exist. The private sector firms on the other hand base their existence on making profits. The public sector is run on the money collected by the general public through taxes, which is the income for the public sector. They are also run on state loans. Private sector companies are run by the capital input made by individuals or by share owners. The income is then retained in the company or a part of it is given out as dividends to the share owners'.
Make no mistake, these national and international trade associations are working for their members--not the public. When they LOBBY for public policy they do so to strengthen their members ----not the public. As with anything----once an association stops being LOCAL---becomes NATIONAL ---becomes INTERNATIONAL as this PUBLIC INSURANCE ADJUSTERS-----who have a FORTUNE 500 legal advisor---
to band together for the greater good of the profession
So, as the AMA is the same trade association banding together to protect doctors----regardless of MALPRACTICE---OR FRAUDS.
'General Counsel to the National Association of Public Insurance Adjusters (www.napia.com)'
'The National Association of Public Insurance Adjusters (NAPIA) was established in 1951 to promote a higher standard for policyholder advocacy.
Public insurance adjusters are licensed to serve the general public and deliver knowledgeable and experienced representation when filing a claim for property damage. The founding members of NAPIA envisioned an association that would provide the appropriate resources for policyholder advocates in pursuit of successful claims resolution.
The original members set aside their competitive interests, choosing instead to band together for the greater good of the profession.
For more than 69 years NAPIA has provided a forum for public adjusters nationwide to share their knowledge, accomplishments and challenges in handling residential and commercial claims'.
PUBLIC ADJUSTERS have gotten a bad reputation these few decades because an incredible amount of fraud and insurance consumer abuse has risen to great levels ----lawsuits, complaints, bad press. The trade association insists its members are VERY PROFESSIONAL. We have no doubt most are---as most trade people are. The problem is getting rid of those who are not.
HOW DO WE CLEAN UP THE PUBLIC ADJUSTERS PROFESSION?
Most of the discussion of fixing fraud and abuse in this industry is tied to DISASTER INSURANCE claims----but as we see below ----the crimes are continuous across the nation in all communities.
We are sure STEVE here is a good guy---but the trade association is a lobby seeking to maximize public adjuster wealth and access---and partners with SPECIAL INTERESTS to get those public policy.
Crooked Public Adjusters
Public Adjusters are typically an advocate for the insurance policyholder and help homeowners navigate the claims process. Unfortunately, there are many stories of how scam artists entered the picture to deceive their clients.
Orange County DA Prosecutes Adjuster Who Stole Thousands from Clients
Huntington Beach man gets 180 days in jail and must pay restitution after stealing $132,000 from insurance clients
Philadelphia Insurance Adjuster, 2 Employees Charged With Stealing More Than $300,000 From Homeowners
Couple accused of stealing from fire victim, thousands spent at strip club
More customers angry with Midwest City Business Owner
Fire Victims Say They Were Ripped Off by Insurance Adjuster
31 charged in insurance fraud sweep: Miami-Dade state attorney’s office
Arizona insurance director suspends license of adjuster accused of using bogus signature stamps to deposit $197,487; diverted $91,654.61 to his own use
DEP Agents Arrest Owner of Mold Inspection and Remediation Business for Theft by Fraud
N.J. insurance adjuster receives 32-month prison term for N.J. Turnpike claims scam
Insurance Adjuster Pleads guilty to Defrauding New Jersey Turnpike Authority, Insurance Companies of $900,000
Monmouth County Public Adjusting Company pleads guilty & sentenced for attempting to defraud Insurance Company of more than $15,000
Garamendi Announces Restitution Settlement for San Diego Fire Survivors
Adjuster’s license revoked for fraud
Insurance Fraud Sting Snags Six More Execs
N.J. public adjuster charged with insurance fraud amid probe of sector
Convicted Hurricane Sandy fraudster Frank Lewery also stole from fire victims, prosecutors say
Arrests Made In Home Insurance Fraud Ring
Two Public Adjusters arrested after Florida investigation
Two Miami Adjusters arrested in $400,000 hurricane fraud case
Bronx homeowners charge they’ve been swindled by an insurance adjuster acting as a contractor
N.Y. Insurance Adjuster, Four Others Plead Guilty to Million Dollar Scam
CFO Atwater announces sentencing of Miami Public Adjuster for pocketing $360,000 from 82 clients
Public Adjuster Pockets over $100,000, All Victims are Over the Age of 72
Sandy victim beats shady Public Adjuster in court
Seven sentenced in New York for $1 million insurance fraud scheme
Main Line public adjuster faces prison for fleecing clients of $684K
US states differ in regulation of PUBLIC INSURANCE ADJUSTERS----some set fee caps----some broadly define who those PUBLIC ADJUSTERS are. We want to look at this discussion in a way which will actually bring CHANGE for public benefit. It is no secret ----a PUBLIC ADJUSTER will earn more money ---clock in more time doing insurance adjustment for corporations and their property. Ergo, most professional PUBLIC ADJUSTERS are looking for these jobs---not the single residential property. Whether ordinary damage or disaster damage----the good public adjusters are on the payroll of regional and national corporations.
'Asked in Bridgewater, MA | May 27, 2014
I want to fire my public adjuster. What are my rights?
Had home fire. Hired public adjuster. I had to advocate for myself & take over the the entire process after day 1. My public adjuster showed little interest in my case after meeting with the adjuster from my home insurance company. Comments were made that this adjuster was "too much of a company man".From that point on we received no phone calls or contact from our adjuster. We had to do all the contacting. Whenever I did call to ask him to check on the progress of the cleaning, restoration, advance check- among other things - he stated "Mike why don't you go ahead & call your-self". This occurred on many occassions. I also gave him receipts from items I 'd purchased day of fire & he assured me they were sent. I called the home insurance adjuster to confirm & he still hasn't got them'.
States like MARYLAND do not regulate PUBLIC ADJUSTERS------it is the responsibility of insurance consumer to know if or when an adjuster is fraudulent or wrong in the claims adjustment. Below we see such a state court ruling.
'In the Supreme Judicial Court case first holding a public insurance adjuster was an agent of the insured, an insured argued he had “left everything up to the adjuster” and never reviewed the adjuster’s loss submissions to his insurance company. Unfortunately for the insured, the public insurance adjuster had submitted fraudulent documents to boost his contingent fee. The court found that the insured was bound by the acts of his agent, the public insurance adjuster, and therefore could not collect on his claim because of the public insurance adjuster’s fraud'.
This article does a good job discussing the real issues for PUBLIC CONSUMERS----NOT COMMERCIAL-----and we see the NATIONAL TRADE BOARD pushing for policies which hurt the very consumers for whom they advocate.
'We appeal to you as members of NAPIA and NJPIA to contact the current Board and challenge them to defend their reasons for advocating for fee caps which will hurt their industry and the policyholders they are supposed to represent'
Do Some Public Adjusters Charge Too Much?
By Chip Merlin on June 25, 2013
Posted in Hurricane Sandy, Insurance
How much should public adjusters charge? How much is too much?
This was a question I was asking myself after last night’s Road to Recovery workshop which I posted about in Superstorm Sandy Insurance Questions? Roadmap to Recovery Workshops Provide Answers.
A question was raised by a policyholder on what public adjusters typically charge. Two very reputable and experienced public adjusters were in the audience, Chris Aldrich and Mike Miller. So, I asked them for the answer. Both said ten percent and that the figure could be negotiable depending on the size of the claim. Larry Bathgate indicated that most of his clients signed up with public adjusters between 5-10% of a loss recovery. United Policyholder’s Executive Director Amy Bach indicated that most reputable public adjusters would sign up clients for 10% of the claim settlement.
One of the New Jersey policyholders in the audience indicated that he contracted with an out-of-state public insurance adjuster for 23.5%. This followed an earlier discussion about a public adjuster who was charging a 50% fee, although noting the fee was only for additional amounts over the amount previously paid. We queried how the claim could be financially litigated if he pressed with a 50% public adjuster fee. We hear of other public adjusters charging from 15% to 33 1/3% on Superstorm Sandy claims.
Freedom is an important value in the American way of life. I believe in the free market. I have been in meetings where legislators pondering public adjuster fees have the same view and think people should be able to contract for whatever sums they want. Yet, isn’t there a problem with a profession that allows members to gouge customers? How much is too much? When do the fees charged prevent policyholders from being able to retain additional professionals? Do public adjusters that charge 50% really provide greater service? What about the concern of those in the insurance industry who ponder if higher fees reflect incentives to commit fraud?
This issue is being publicly fought between two public adjusting associations. AAPIA posted a public article AAPIA exposes efforts of NJPIA and NAPIA to bring 12.5% fee caps to New Jersey and elsewhere:
We have been consistent in our position. The fee caps proposed by NAPIA and NJPIA will hurt the public adjusters and the consumers of New Jersey since public adjusters will not be able to help those with small claims. We appeal to you as members of NAPIA and NJPIA to contact the current Board and challenge them to defend their reasons for advocating for fee caps which will hurt their industry and the policyholders they are supposed to represent, and to instead support only laws that truly are fair and reasonable to all concerned.
Please support our efforts to defeat S 2472.
American Association of Public Insurance Adjusters
I have friends in AAPIA and NAPIA. NAPIA is a very longstanding association that has long lead the fight for licensing of the public adjusting profession. I think that NAPIA’s concern about "price gouging" is appropriate. I also think that AAPIA’s concerns about small claims needing professional help is appropriate. But, that begs the question–what is a small claim? And, what about all the other concerns raised above?
Our firm has been very supportive of public adjusters and will continue to educate how public adjusters can help policyholders reach a full, fair, and honest recovery that typically does not happen without professional assistance. Examples of this support are found in Three Reasons to Hire a Public Adjuster, Honesty is the Best Policy; Public Adjusters Need to Promote the Good Work of Their Profession, and Did You Know You Can Hire a Public Adjuster to Help?
Yet, as a consumer advocate for policyholders and a supporter of public adjusting, I am certain United Policyholder’s Executive Director Amy Bach is concerned about the price of professional help and price gouging. So am I. And so should all who view public adjusting as a noble and ethical profession rather than an industry looking to maximize profits at the expense of its customers.
While insurance consumer advocates are trying to keep PUBLIC ADJUSTER'S fees to a 10% or so the NATIONAL TRADE BOARD is trying for 25% -------but this is the problem----FEMA has tacked a 26% or more onto a state's already 10% fee. This is what brings the PUBLIC ADJUSTER fees during disaster to 40---50% of people's insurance claims----ergo, PUBLIC ANGER.
Why would FEMA not be able to have a trained crew of EMERGENCY PUBLIC INSURANCE ADJUSTERS? The training and certifications are only months over some years. Why are FEMA employees not CROSS-TRAINED to be those receiving 10% percent fee?
'In 43 of those 45 states, percentage fees are the norm'.
'FEMA also increased the fees paid to adjusters by an average 26 percent to be competitive with industry standards and to ensure that customers received the best care possible'.
FEMA picks and chooses who works these disasters.
Secondly, other industries tied to public disaster via public health concerns dedicate or require members in their trade association to COMMIT to serving in disaster zones. ELECTRICAL WORKERS are expected on call to go anywhere in the US for a disaster. There are 300,000------400,000 PUBLIC ADJUSTERS most of which likely choose not to go to disaster zones-----
THIS IS WHY FEMA AT THE TIME OF A DISASTER TAKES ANYONE WITH A PULSE AND PUTS THEM THROUGH A SHORT TRAINING PERIOD ----THEN WE GET FRAUDS----BADLY DONE CLAIMS IN WHICH CITIZENS ARE DENIED.
'Public adjusters are prohibited from charging more than 20 percent of the insurance claim payment on claims not based on a declared emergency and 10 percent of the insurance claim payment on claims based upon a declared emergency for claims made during the first year after the declaration of the emergency. These fee caps apply only to residential property insurance policies and condominium unit owner policies as defined in s. 718.111(11), F.S. [See s. 626.854(18), F.S.]'
THESE FEE CAPS PERTAIN TO RESIDENTIAL BUILDING ONLY. So, the incentive for good PUBLIC ADJUSTERS is to work for the regional/corporate campus and buildings. One would imagine a corporate management would have PUBLIC ADJUSTERS on retainer.
During disasters those PUBLIC ADJUSTERS are working along-side INDEPENDENT ADJUSTERS who earn lots more because they are team corporate insurance-----not team homeowner.
The answer is FEMA is contracting more and more to INDEPENDENT INSURANCE ADJUSTER rather than PUBLIC ADJUSTERS. This is why the fees took so much of the policy-holder claim and more free-wheeling with fraud.
HOW ARE INDEPENDENT INSURANCE ADJUSTERS PAID?
by Guy Grand
Many of our students come to us with questions about how they will get paid once they start working in the industry. I’ve written about the relationships our Trained Adjusters develop with our partner Independent Adjuster Firms in this article titled “Who Do Independent Adjusters Work For?”. But below you will find an excerpt from our free ebook “Catastrophic Insurance Adjusting – Making it Your Career” where I have written about fee schedules and how we actually get paid to do the work we do. The following should give you a little insight into the matter.
Independent adjusters are paid in a few different ways but almost always they split the fee bill with the IA Firm. This means we split the money made from handling the claim with the IA firm. The adjuster usually makes between 50% and 70% of the amount the IA firm bills to the insurance company for the claim.
During catastrophes, adjusters are usually paid according to a fee schedule basis. Fee schedules vary widely between insurance companies and IA firms. IA firms contract with, and agree to, a fee schedule which they ultimately pass along to the field adjusters.
During hurricane Sandy I worked for one IA firm but no less than 5 carriers. Some fee schedules paid really well and some not so much. I have never looked at the multiple fee schedules and worried about who is paying more and who is paying less. The bottom line is what I make on the storm.
I have always figured my income from door to door. I start the clock when I leave my driveway and stop it when I get back to my driveway. I add up all my income and divide it by the number of days I was gone. That gives me my gross daily pay. Some adjusters only figure their daily income beginning with their first inspection day. That number looks better on a daily basis, but hey, I want to know how much I made total, including driving back and forth across the country.
Below you will find an actual example of a fee schedule from one carrier (remember this money is split between the adjuster and the IA firm). On hurricane Sandy I was paid 65% of the fee schedule.
Fees Also Include:
- Inspection & Estimate (unless noted otherwise)
- Full cost of agreed repair or replacement (including depreciation or betterment)
- Telephone, faxes, and all other adjuster out of pocket expenses (except T&E billing)
- 4 photographs included in fee- $1.00 thereafter to $20.00 maximum charge for Personal Lines and $50.00 maximum for Commercial Lines.
- Mileage; first 50 miles included – $1.50 per mile fee applies thereafter.
- Time and Expense (T&E): On large losses, or on complex claims, we are sometimes paid on a “time and expense” basis. We keep track of the time spent in all parts of the claims process and submit our hours and our expenses to the IA firm. The hourly rate varies depending on the company, usually between $65 and $95 per hour worked.
- Daily Rate: This is common for those who work in the office reviewing files (inside adjusters) and for the later stages of a catastrophe deployment. It is usually a set dollar amount per day to complete a defined amount of work.
So, here is the trajectory for our US 99% WE THE PROPERTY owners needing to use that insurance. PUBLIC INSURANCE ADJUSTERS wanting higher fees and more business are tying themselves to COMMERCIAL CLAIMS-------leaving our homeowners and auto owners with fewer options.
'Reasons to Hire a Public Adjuster
There are several reasons that a business might hire a public claims adjuster to help with their insurance claim'.
COMMERCIAL PUBLIC ADJUSTERS earning closer to what those INDEPENDENT INSURANCE ADJUSTERS do.
Now, do we think ART JANSEN of INTERNATIONAL ADJUSTERS is sending trade members to help residential victims? Yet, this is to where more and more and more of those 300,000-----400,000 NAPIA MEMBERS work.
Art Jansen, CPPA, SPPA
Chief Executive Officer
Arthur T. Jansen, SPPA, CEO of Jansen/Adjusters International, is a licensed public adjuster and a passionate advocate for policyholders.
'Property Insurance Roundtable
The Unauthorized Practice of Public Adjusting (UPPA)
The Unauthorized Practice of Public Adjusting (UPPA)
To quote Robert Baker’s published piece on the Unauthorized Practice of Public Adjusting (UPPA), “The unlicensed practice of public adjusting is a vehicle of consumer fraud that preys on some of the most vulnerable elements of our society. The disaster-stricken, the elderly, the unsophisticated and those for whom English is a second language. Individuals losses range from a couple of thousand to tens of thousands of dollars. And frequently, victims are left without a remedy, because UPPA offenders just disappear or are not worth suing.”'
We are committed, commercial public insurance adjusters.
Our professional loss consultants can help by evaluating your business insurance policy and negotiating on your behalf.
Let's get started.
Does your business need a public insurance adjuster?
Business owners face a multitude of challenges when dealing with a commercial building insurance claim. If you choose to file the claim yourself, you will be juggling the claims process while attempting to maintain your business.
Water damage at commercial properties includes broken pipes, faulty machinery, faulty appliances, malfunctions in HVAC systems and other sources of building water damage. These events can halt your operations in their tracks until clean-up and reconstruction is complete.
In the event of a loss, it is the business owner or manager’s responsibility to ensure the damages are mitigated to avoid additional loss. Public adjusters specializing in commercial losses can assist in damage mitigation in multiple ways.
How can an experienced commercial public adjuster help?
Commercial public adjusters assist in building damage mitigation by managing the entire claims process on behalf of the insured. Navigating the maze of complicated insurance claim processes is a headache for the business owner. There are several, critical tasks that require expert consultation to document and process thoroughly.
For example, a claim may be eligible for business interruption loss calculations. These calculations are complex, and producing volumes that account the loss in detail to the insurance carrier is a specialized task. The verbiage and fine print of the insurance policy contract is complicated and difficult to understand without training.
Business owners have numerous responsibilities that cannot be postponed or placed on the back-burner while they are attempting to navigate the insurance claim process. It is our opinion that hiring a public adjuster is standard practice for businesses during all dealings with insurance carriers.
We will end by saying this about PUBLIC ADJUSTER policies. We posted one article from CONSUMER ADVOCATES warning our local residential public insurance adjusters that the NATIONAL BOARD is pushing policies which will put those local public adjusters out of business.
This is happening because the NATIONAL BOARD for PUBLIC INSURANCE ADJUSTERS are filled with INTERNATIONAL MEMBERS pushing policies favoring those global 'PUBLIC' adjuster corporations.
It is no COINCIDENCE that a BRIAN GOODMAN working for a law firm of FORTUNE 500 lawyers-----may be related to this one GOODMAN---GABLE----GOULD INTERNATIONAL 'public' ADJUSTER corporation.
This is the general public and homeowners are more and more only able to secure FLY-BY-NIGHT ADJUSTERS----and falling into more and more SCAMS-----
NO INSURANCE CLAIM MONEY FOR YOU -----SAYS STATE INSURANCE AGENCIES.
Brian S. Goodman
Download Bio PDF
Brian Goodman is a trial lawyer and principal at the firm. He represents clients in the defense of civil claims, including serious personal injury and products liability claims. Brian also represents churches and other religious institutions in the defense of sexual misconduct claims. In addition to his active trial practice, Brian represents a national insurance-industry trade association in regulatory and licensing matters, and, as such, has been and continues to be very active with the NAIC (National Association of Insurance Commissioners). He lectures extensively for continuing education credit in numerous states on first-party property insurance matters and authored a chapter in the ABA book on First Party Property Litigation.
Selected for inclusion in Maryland Super Lawyers, since 2009
National Association of Public Insurance Adjusters, Person on the Year Award, 2005
AV® Preeminent™ Peer Review Rated by Martindale-Hubbell
Baltimore Bar Foundation, Board of Trustees
Young Victorian Theatre Company, General Manager, 1978 - present
American Bar Association
Bar Association of Baltimore City
Bar Association of Baltimore County
International Association of Defense Counsel
Maryland Association of Defense Trial Counsel
Maryland State Bar Association
The solution would be --------PUSH THESE INTERNATIONAL ADJUSTERS into a INDEPENDENT OR COMMERCIAL status---they are NOT PUBLIC ADJUSTERS.
Meet Our Team of Public Adjusters
AI Becomes Incorporated
In 1985, 13 of the industry’s leading public adjusting firms joined forces to bring property insurance policyholders who had suffered loss and damage a groundbreaking standard of recovery assistance. The new organization — Adjusters International — could put a team of top professionals virtually anywhere, at any time, delivering an unprecedented level of expertise, experience, advocacy and service to help insureds recover from property losses that were frequently disastrous in scope.
In 1985, 13 of the Industry’s Leading Public Adjusting Firms Joined Forces.
- 1985 The year we began preparing and settling claims.
- 1996 Advocacy and service to eligible government entities and non-profit organizations.
- 2016 Expanded offerings to include disaster preparedness and resiliency service.
Adjusters International has become one of the largest and most respected organizations in its field. With over 40 offices throughout the U.S. and Canada, AI has helped policyholders of all types recover from many of the worst natural and man-made disasters.
In 1996, Adjusters International recognized the need to provide the same level of expertise, advocacy, and service to eligible government entities and non-profit organizations that had suffered a disaster and were seeking recovery under FEMA’s public assistance grants program — guiding them through the complicated application process.
From terrorist attacks to hurricanes, explosions to earthquakes, and fires to floods, Adjusters International is instrumental in putting clients on the road to recovery with both public adjusting services and the disaster recovery grant process.
In 2016, Adjusters International again expanded its offerings to include disaster preparedness and resiliency services in advance of a disaster. To accomplish this new direction, AI joined with Tidal Basin Group, a national emergency management and disaster recovery consulting firm with unique knowledge and experience in the areas of emergency and disaster preparedness, planning, response, recovery, mitigation management, and funding.
Adjusters International and Tidal Basin are now one organization — peerless in its ability to provide a Total Solution® for disaster preparedness and recovery, whether the need involves government grants or property insurance claims.
Our disaster preparedness and recovery services are provided under the Tidal Basin name.
Our adjusting services continue to be delivered by our licensed regional public adjusting firms, under the Adjusters International umbrella. Many of those firms are family-owned and been operating for decades in their respective markets, providing personalized service and proven expertise in advocating for the best possible financial recovery for their clients.
Adjusters International leadership experience, professionalism, and a deep-seated commitment to customer service are the hallmarks of our industry leadership.