Business News
SACRAMENTO – Insurance Commissioner Dave Jones directed the licensing department to issue a notice to all licensed public adjusters and admitted carriers to remind them of the rules, regulations, and limitations on solicitation and compensation that govern public adjusters' work in California.
Jones issued the notice in the wake of the devastating fires that tore through Northern and Southern California damaging and destroying thousands of homes, business, vehicles, and equipment, and the resulting need for residents to begin the long road to recovery and rebuilding,
Public adjusters do not work for insurance companies but rather directly for policyholders who hire the adjuster for a fee to work to settle their insurance claim.
Public adjusters' fees are paid by the policyholder and are typically a percentage of the settled claim, which means it comes out of the funds used to recover from the loss.
"When people experience such devastating losses the emotional need is to return to normal, which leaves many people vulnerable," said Jones. "We strongly suggest people take their time when considering a contract for a public adjuster or hiring a contractor. It is difficult to make business decisions when you are most vulnerable emotionally."
The Department of Insurance urges consumers to begin the claims process by contacting their insurance company or agent.
If consumers have questions or concerns about their claim, what their insurer is telling them, or settlement offers, the department's consumer services team can assist and there is no charge for that assistance.
Policyholders are not restricted from contacting public adjusters directly. If a policyholder is considering hiring a public adjuster, the department also urges consumers to check the adjuster's license and make sure they are properly licensed and in good standing.
The law limits how and when public adjusters may solicit business after a disaster like the fires that burned across the state this month.
For example, public adjusters are prohibited from soliciting business from fire victims until seven days after the conclusion of the loss-producing event, in this case, after the evacuation order was lifted.
California law also limits how and when public adjusters may contact consumers, how they are compensated, and what they are required to have in their contracts for service.
In 2016, the department sponsored and Gov. Jerry Brown signed SB 488, which ushered in new reforms and limitations on public adjusters.
Many of those reforms were the direct result of consumer complaints and criminal investigations conducted into alleged wrongdoing by public adjusters.
Questions regarding this notice should be directed to the Department of Insurance Licensing Hotline at 800-967-9331.
Jones issued the notice in the wake of the devastating fires that tore through Northern and Southern California damaging and destroying thousands of homes, business, vehicles, and equipment, and the resulting need for residents to begin the long road to recovery and rebuilding,
Public adjusters do not work for insurance companies but rather directly for policyholders who hire the adjuster for a fee to work to settle their insurance claim.
Public adjusters' fees are paid by the policyholder and are typically a percentage of the settled claim, which means it comes out of the funds used to recover from the loss.
"When people experience such devastating losses the emotional need is to return to normal, which leaves many people vulnerable," said Jones. "We strongly suggest people take their time when considering a contract for a public adjuster or hiring a contractor. It is difficult to make business decisions when you are most vulnerable emotionally."
The Department of Insurance urges consumers to begin the claims process by contacting their insurance company or agent.
If consumers have questions or concerns about their claim, what their insurer is telling them, or settlement offers, the department's consumer services team can assist and there is no charge for that assistance.
Policyholders are not restricted from contacting public adjusters directly. If a policyholder is considering hiring a public adjuster, the department also urges consumers to check the adjuster's license and make sure they are properly licensed and in good standing.
The law limits how and when public adjusters may solicit business after a disaster like the fires that burned across the state this month.
For example, public adjusters are prohibited from soliciting business from fire victims until seven days after the conclusion of the loss-producing event, in this case, after the evacuation order was lifted.
California law also limits how and when public adjusters may contact consumers, how they are compensated, and what they are required to have in their contracts for service.
In 2016, the department sponsored and Gov. Jerry Brown signed SB 488, which ushered in new reforms and limitations on public adjusters.
Many of those reforms were the direct result of consumer complaints and criminal investigations conducted into alleged wrongdoing by public adjusters.
Questions regarding this notice should be directed to the Department of Insurance Licensing Hotline at 800-967-9331.
- Details
- Written by: Editor
The California Bureau of Real Estate (CalBRE) issued a warning against price gouging on rental housing for wildfire victims.
California Real Estate Commissioner Wayne Bell said the practice is illegal in counties where a state of emergency has been proclaimed.
“The people who have suffered losses due to the horrific fires should never have to suffer further from rent price gouging,” Bell said.
CalBRE will be conducting an investigation as it has been informed that one or more real estate licensees may be involved in unlawful “price gouging” with respect to the rental of residential real property in one or more counties devastated by the recent wildfires and where a state of emergency has been declared.
California law states that upon and after the declaration of a state of emergency, including one resulting from fire, those persons who rent or lease, or offer to rent or lease, rental housing – for a term of less than one year – at a rate more than 10 percent above the rate immediately prior to the onset of the state of emergency, are committing a misdemeanor and engaged in an unlawful business practice.
A greater price increase may be lawful, but only upon the offer of certain required proof from the service or goods provider.
The law on price gouging or taking unfair advantage of consumers also applies to hotel and motel rates, and to consumer food items and other goods and services.
Price gouging is a violation of the law and is punishable by imprisonment or a fine of not more than $10,000, or by both the fine and imprisonment. Unlawful business practice actions can also be brought against licensees who violate the anti-price gouging law.
According to the California Attorney General’s Office, local district attorneys and the Attorney General can enforce this law.
Bell said CalBRE will carefully investigate claims of price gouging by its licensees and will take appropriate disciplinary action.
Bell also warns victims of the recent fires to only work with California licensed real estate agents and contractors.
He noted, “Disasters are too often followed by unlicensed contractors and others who take undue advantage of consumers who are in desperate need of qualified assistance.”
He also said consumers need to ask those who offer their professional services for proof of licensure, or any applicable exemptions, and for their qualifications.”
To file a complaint with CalBRE against a real estate licensee or regarding unlicensed activity, go to the bureau’s website at www.dre.ca.gov. To file a complaint with the Contractors State License Board, visit the board’s Web site at www.cslb.ca.gov.
To view Penal Code 396, which addresses price gouging in disaster zones, go to http://codes.findlaw.com/ca/penal-code/pen-sect-396.html.
California Real Estate Commissioner Wayne Bell said the practice is illegal in counties where a state of emergency has been proclaimed.
“The people who have suffered losses due to the horrific fires should never have to suffer further from rent price gouging,” Bell said.
CalBRE will be conducting an investigation as it has been informed that one or more real estate licensees may be involved in unlawful “price gouging” with respect to the rental of residential real property in one or more counties devastated by the recent wildfires and where a state of emergency has been declared.
California law states that upon and after the declaration of a state of emergency, including one resulting from fire, those persons who rent or lease, or offer to rent or lease, rental housing – for a term of less than one year – at a rate more than 10 percent above the rate immediately prior to the onset of the state of emergency, are committing a misdemeanor and engaged in an unlawful business practice.
A greater price increase may be lawful, but only upon the offer of certain required proof from the service or goods provider.
The law on price gouging or taking unfair advantage of consumers also applies to hotel and motel rates, and to consumer food items and other goods and services.
Price gouging is a violation of the law and is punishable by imprisonment or a fine of not more than $10,000, or by both the fine and imprisonment. Unlawful business practice actions can also be brought against licensees who violate the anti-price gouging law.
According to the California Attorney General’s Office, local district attorneys and the Attorney General can enforce this law.
Bell said CalBRE will carefully investigate claims of price gouging by its licensees and will take appropriate disciplinary action.
Bell also warns victims of the recent fires to only work with California licensed real estate agents and contractors.
He noted, “Disasters are too often followed by unlicensed contractors and others who take undue advantage of consumers who are in desperate need of qualified assistance.”
He also said consumers need to ask those who offer their professional services for proof of licensure, or any applicable exemptions, and for their qualifications.”
To file a complaint with CalBRE against a real estate licensee or regarding unlicensed activity, go to the bureau’s website at www.dre.ca.gov. To file a complaint with the Contractors State License Board, visit the board’s Web site at www.cslb.ca.gov.
To view Penal Code 396, which addresses price gouging in disaster zones, go to http://codes.findlaw.com/ca/penal-code/pen-sect-396.html.
- Details
- Written by: Editor
How to resolve AdBlock issue?