Bush/Gallagher Join to Harm Floridians, Chase Away More Adjusters

by M. Randolph Hamilton
October 27th, 2004

Bush approved a new rule to try to force insurance companies to inspect damages sustained in multiple hurricane strikes this year by deadlines set by the the governor and his cabinet. According to a press release issued by Tami Torres yesterday, the rule was approved yesterday by the governor and his cabinet. The rule deadlines are as follows;

• For claims filed by October 21 as a result of Tropical Storm Bonnie, Hurricane Charley or Hurricane Frances, the deadline is November 22.
• For claims filed by November 8 as result of Hurricane Ivan or Hurricane Jeanne, the deadline is December 8.

According to Gallagher, insurance companies who fail to meet the deadlines face an administrative penalty of $2,500 per claim, per day. Of course it will not be the insurance companies who pay these fines, but the insureds. Like any responsible corporation, the insurance companies will simply pass the expense on to the end customer. Also one has to consider that this may just be a way for the State of Florida to sneak in a new temporary tax.

Neither Gallagher nor Bush offered solutions as to where insurance companies might find more adjusters to perform the inspections. This leaves the insurance companies in a position virtually guaranteeing they will be fined, and taking a very unrational approach to a problem that was created by Tom Gallagher to begin with.

Many independent adjusters left Florida to work in Alabama after the hostile environment set by Gallagher when he accused independent adjusters of price gouging.

Even though many insureds have reported to adjusters that they cannot get a contractor out for weeks, and even months, just to write an estimate, the government is only attacking the insurance industry. This is an unnecessary risk that could backfire when insurance companies start refusing to provide insurance to Floridians. It also opens the door to class actions suits against the State of Florida, Gallagher and Bush, when Floridians are not able to obtain insurance to protect themselves.

Most independent adjusters who chose to remain in Florida have been working 12 to 14 hours per day on multiple hurricanes and some still have not been able to inspect the overwhelming number of claims assigned to them. Tammi Torres and Nina Banster have remained silent when asked via email what Gallagher proposes would have prevented this.

The media release issued on October 21st, 2004 stated,

"One of our top complaints continues to be delays working with a claims adjuster," said Gallagher, who oversees the Florida Department of Financial Services, "Setting deadlines will help thousands of Floridians who are still waiting to start the claims process."

The DFS press office has also not responded to inquiries as to how the deadlines would help thousands of Floridians when there is still a shortage of adjusters. This rehtoric only incites anger amoungst all involved in the claims process from both insureds and adjusters alike.

The media release issued yesterday states;

"I have been out working to help storm victims recover from these back-to-back catastrophes. We are listening to their concerns and we understand that getting their insurance check is a necessary first step toward rebuilding their homes and their lives, "said Gallagher.

When asked specifically what work Tom Gallagher has done to help storm victims recover from these back-to-back catastrophes the press office still remained silent.

According to the DFS press office, Gallagher also stated that he wants the new rule to;

• Advance funds to all storm victims entitled to additional living expenses.
• Send adjusters to evaluate and assess damage.
• Make a settlement offer and work to resolve all claims.

All of these tasks are standard operating procedure for the insurance industry. The fact the Tom Gallagher does not know that is a concern, considering his position in state government.

Since there is already a shortage of adjusters to inspect the claims, a deadline will do nothing to speed the process for insureds. Multiple hurricane strikes affecting multiple states does more than create a shortage of adjusters to work the claims, it gives the adjusters a choice of where they will work. The risk of loosing insurance companies in Florida and the loss of taxpayers money due to law suits against the state for causing the loss of insurance companies is not worth the temporary false sense of security that politicans offer.

Shouldn't the Chief Financial Officer and Governor of a state know that? The stupid things politicans say.

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