A coalition of more than 16 public adjusters, insurance attorneys and industry professionals has established a formal Public Adjusting Code of Professional Conduct, known as the PA COPC.
The coalition says the code sets a uniform professional conduct standard for public adjusters operating across US jurisdictions. Its provisions draw on the NAIC Public Adjuster Licensing Model Act and professional conduct rules developed by the American Bar Association.
The PA COPC also incorporates standards created by national public adjusting associations.
Public adjusters hold licenses to represent policyholders during insurance claim negotiations and settlements. Their work places them directly between insureds and insurers, with responsibility for claim preparation, documentation and settlement discussions.
The coalition said this position requires professional responsibility toward policyholders and the wider insurance claims process.
The new code addresses professional competence and continuing education. It also sets expectations for supervision and evidence handling.
Separate provisions cover conflicts of interest and client solicitation. The code also addresses communication with policyholders and professional accountability.
The coalition is offering the PA COPC for adoption by insurance regulators across US states and jurisdictions. Professional associations and individual public adjusters also have access to the proposed standards.
Jeffrey Major, founder and CEO of Skyline Adjusters and a member of the coalition, linked the initiative to growing demand for public adjusting services after repeated natural catastrophes across the US.
In recent years, the large number of natural catastrophes in the U.S. has fueled widespread demand for public adjusting services.
Jeffrey Major, founder and CEO of Skyline Adjusters
He said increased demand has also drawn practitioners whose qualifications or conduct have damaged perceptions of the profession.
“At the same time, these circumstances have attracted some unscrupulous actors to the profession, whose lack of qualifications and integrity are damaging the industry’s reputation,” Major said.
Major said adoption of the code would give public adjusters a defined professional standard when representing policyholders. He also said policyholders would gain clearer expectations about the services public adjusters provide during insurance claims.
Once the code is adopted, compliance by public adjusters will be a mark of professional commitment to the highest standards of conduct in the representation of policyholders.
“It will also give policyholders a clear understanding of what to expect when they engage public adjusters for assistance with their insurance claims.”
The coalition is now working to establish the Public Adjuster Code of Conduct Board.
Its stated mission focuses on professional standards and ethical practice across the US public adjusting profession. The board also intends to support public confidence in public adjusters.
The planned board will develop publicly available procedures covering alleged code violations. It will also establish consequences for breaches of the PA COPC.
Coalition members want the code to become a common professional standard for public adjusters. They also want insurers, regulators and policyholders to use it when assessing expected professional conduct.
The PA COPC incorporates provisions from the National Association of Insurance Commissioners Public Adjuster Licensing Model Act MO-228.
It also draws on ethics rules developed by national and state public adjusting associations. American Bar Association Rules of Professional Conduct influenced the standards, alongside established state professional conduct rules.
State laws governing public adjusters differ across the country. The coalition therefore designed the PA COPC broadly enough for use throughout US jurisdictions without replacing state-specific legal requirements.
