Chip Merlin | Property Insurance Coverage Law Blog | April 29, 2019
The Michigan Director of Insurance recently issued the following bulletin:
MICHIGAN INSURANCE BULLETINS AND RELATED MATERIALS
BULLETINS
Bulletin 2019-07-INS
April 17, 2019
FROM: Anita G. Fox
Director Of Insurance
DATE: April 17, 2019
RE: RESIDENTIAL PUBLIC ADJUSTER CONTRACT
This bulletin supersedes Bulletin 2018-22-INS, dated November 20, 2018.
The Director has approved a new residential public adjuster contract. The effective date of the new contract is May 15, 2019. All licensed public adjusters must begin using the new contract on that date; and must file the new contract with DIFS no later than June 30, 2019.
Here is a copy of the new Michigan Residential Public Adjuster Contract.
Anita Fox is a former accomplished insurance defense counsel and was recently appointed Michigan’s Director of Insurance. Despite her name and background, her appointment does not necessarily mean that an insurance company fox is guarding the insurance henhouse. Time will tell and many experienced insurance defense counsel certainly know how insurance companies can make policies and procedures which are not in the public interest.
The mandated insurance contract has two parts which I found interesting. It requires the parties to indicate which coverages the public adjuster is adjusting and charging a fee. This is important. Some public adjusters wrongly do no adjustment work on the contents or living expenses and instead make their own policyholder customers do all the work, and then charge for it. This contract makes it clear what the public adjuster is required to do, and I applaud this requirement.
The second item is the recognition that the public adjuster is still required to be paid for work even if litigation, arbitration or mediation is necessary. I applaud this as well because the issue comes up every now and then and after the public adjuster does work and disputes arise regarding the amount owed or coverage owed. This contract mandate expressly raises the issue so there is no misunderstanding.