Oklahoma Insurance Commissioner John D. Doak issued a bulletin to Oklahoma-licensed public adjusters advising them not to charge customers more than 10 percent of the total claim settlement.
“Oklahoma storm victims need alternatives and assistance, but they also need to keep as much of their insurance claim as possible,” said Doak. “The consumer comes first. This is just another way the Oklahoma Insurance Department (OID) is protecting them.”
Since the beginning of the tornado outbreak on May 19, OID has received several inquiries regarding the use of public adjusters in negotiating property insurance claims. A public adjuster is any person who acts on behalf of the insured in negotiating or settling a property claim for compensation. A public adjuster must first be licensed with the OID before representing a property owner in the claim process and collecting a fee on the claim payout.
“The services provided by public adjusters can be extremely valuable,” said Doak. “But they need to understand that higher fees are not acceptable and that all fees need to be clearly discussed upfront.”
OID strongly advises public adjusters working the recent Oklahoma storms to:
- Show proof of state license to prospective customers;
- Not require payment in advance for representation;
- Not charge a fee that exceeds 10 percent of the total gross claim settlement.
Source: Oklahoma Insurance Department
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