Contractor Offering ‘Claim Assistance’ Fined for Acting as a Public Adjuster

Wisconsin Insurance Commissioner Nathan Houdek fined a contractor his office said was acting as a public adjuster under Wisconsin law.

Houdek imposed civil forfeitures of $6,000, finding the contractor violated the standards of Wis. Stat. ch. 629 by engaging in prohibited conduct and fraudulent practices.

The contractor’s business model combined home repair services with “claim assistance” through assignments of benefits, which violated state law. Wis. Stat. § 629.10(3) prohibits a person acting as a public adjuster from having a financial interest in the subject of a claim beyond the compensation set out in the adjuster’s contract. Public adjusters in Wisconsin are prohibited from requesting or accepting an assignment of insurance policy proceeds from an insured.

“This decision makes clear that if you are acting as a public adjuster in Wisconsin, you must follow the rules that apply to public adjusters,” Houdek stated. “Consumers deserve to know that anyone negotiating an insurance claim on their behalf is free from financial conflicts and is truthful in their dealings with insurers and regulators.”

The Wisconsin Office of the Insurance Commissioner has cautioned consumers to read contracts that assign their insurance benefits to a contractor or third party carefully.