Notice on Solicitation by Public Adjusters in the Southern California Wildfire Areas
In light of the ongoing wildfires in Southern California, Insurance Commissioner Ricardo Lara has issued an urgent notice to all licensed public insurance adjusters and individuals seeking to offer public adjusting services. This warning addresses the ethical and legal guidelines governing the solicitation of business in the aftermath of a catastrophic disaster such as the current wildfires.
Key Guidelines for Public Adjusters:
Licensing Requirements:
All individuals performing public adjusting services must possess a valid Public Insurance Adjusters License issued by the California Department of Insurance. This ensures that adjusters are properly qualified to handle claims for disaster victims.
Prohibited Solicitation Timing:
California law restricts when public adjusters may solicit services from policyholders after a disaster. Specifically, they cannot initiate contact or solicit business from wildfire victims until seven days after the conclusion of the loss-producing event.
Additionally, adjusters are prohibited from soliciting services between the hours of 6 p.m. and 8 a.m., unless the policyholder initiates contact. Solicitation is also not allowed while an evacuation order is still in effect.
Evacuation Orders:
Given that many wildfire-affected areas remain under evacuation orders, public adjusters are required to wait until seven days after the evacuation orders are lifted before they can offer their services. As most areas are still under such orders, this waiting period has not yet started for many victims.
Consequences for Violating the Law: Public adjusters who fail to comply with these regulations may face severe consequences, including civil penalties, license suspension, or even revocation of their public adjusters license.
To learn more about the full set of regulations and laws governing public insurance adjusters in California, including detailed licensing information, you can refer to the Public Insurance Adjusters Act.
This notice serves as an important reminder to ensure that all actions taken during such a sensitive time comply with the law, helping to protect the rights of the victims and prevent exploitation in the wake of disaster.
For more information, you may also contact the California Department of Insurance at (916) 492-3500.
Resources:
Stay informed, stay compliant, and help ensure the protection of vulnerable communities during their recovery.
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