Ch 1 · How to Become a Public Adjuster in Florida
Module 1.5
PAs and the Unauthorized Practice of Law (UPL)
Where the PA's role ends and the attorney's begins. What you can do, what you cannot, where most PAs cross.
10 min read
What you'll learn
The bright line between PA work and lawyer work. What you can do. What you cannot. Where most PAs accidentally cross — and the discipline that follows.
1.5.1 The line
PAs negotiate and adjust claims. PAs do not practice law.
That's the entire rule. Every conduct decision in this module flows from it.
The Florida Bar regulates UPL. Lawyers + the Bar take it seriously — not because they're protective of fees, but because consumer harm from non-attorney "legal advice" is consistently bad. PA's UPL violation isn't a Bar matter only; it can be DFS discipline + Bar referral + civil liability.
1.5.2 What a PA cannot do
| Action | Why it's UPL |
|---|---|
| File suit on behalf of the insured | Practice of law — only attorneys file in court |
| Represent the insured in litigation | Same |
| Provide legal advice on policy interpretation in a litigation context | Construing contracts in dispute = legal analysis |
| File liens on behalf of an adjusting firm | Florida Bar treats this as UPL |
| Demand appraisal in a way that crosses into legal advocacy | Gray area — handle carefully (see 1.5.4) |
| Draft legal pleadings, motions, or briefs | Practice of law |
| Counsel the insured on bad-faith claims as a legal matter | Practice of law |
1.5.3 What a PA can do
| Action | Why it's not UPL |
|---|---|
| Inspect, scope, and price the loss | Adjusting work — your licensed function |
| Build estimates (Xactimate, etc.) | Adjusting work |
| Draft and submit Proof of Loss | Statutorily authorized PA function |
| Communicate with the insurer's adjuster | Negotiation, not litigation |
| Demand reinspection | Adjusting work |
| Advise the insured on documentation, photos, mitigation | Adjusting guidance |
| Serve as appraiser in the appraisal process (if qualified and disinterested) | Statutorily authorized — see 1.5.4 |
| Refer the insured to an attorney | Encouraged when warranted |
1.5.4 The gray areas — handle carefully
Appraisal demand
A PA can invoke the appraisal clause on the insured's behalf when there's a dispute over amount of loss. That's standard PA work.
But: if the appraisal demand argues coverage interpretation, anti-concurrent causation, or other legal questions — that's law-adjacent. Keep appraisal communications focused on amount, not coverage.
Civil Remedy Notice (CRN)
Filing a CRN with DFS under § 624.155 is the precondition to a bad-faith lawsuit.
Best practice: the CRN is drafted by an attorney, not the PA. PA can prepare the underlying file, document the violations, calculate damages — that's adjusting work. Drafting and filing the CRN itself is law-adjacent and should run through counsel.
Recorded statements / EUO
PA may attend a recorded statement of the insured for support. PA cannot represent the insured in an Examination Under Oath — EUOs are formal pre-litigation proceedings under oath, conducted by the carrier's attorney. Insured needs an attorney for EUO. (Detailed in Module 8.5 — homeowner track.)
Coverage opinions
Insured asks: "Is this covered under my policy?"
PA can answer for clear coverage points based on plain language reading and DFS guidance. PA cannot offer legal opinions on disputed coverage — endorsement interpretation, anti-concurrent causation analysis, exclusionary language disputes. That's lawyer work.
Safe phrasing when in doubt: "That's a coverage interpretation question — I'd want an attorney to weigh in."
1.5.5 When the PA's role typically ends
Pre-suit: PA leads.
After CRN is filed or litigation begins: attorney leads. PA shifts to a supporting role — fact witness, expert witness, or behind-the-scenes file builder.
This handoff is normal and healthy. Trying to keep doing PA work after litigation starts creates UPL exposure for the PA and procedural risk for the case.
1.5.6 Practical UPL traps
1. Drafting demand letters that sound like legal demands. "Pursuant to § 627.70152, demand is hereby made..." — that's a lawyer's voice. PA demands stay focused on amount of loss and documentation gaps.
2. Telling the insured what the policy "really means." You can summarize plain language. You cannot interpret ambiguous or disputed clauses.
3. Threatening litigation as a negotiation tactic. PA can mention that the insured may have remedies if the carrier fails to act. PA cannot say "we will sue" — only the attorney can.
4. Splitting fees with attorneys. Florida Bar Rule 4-5.4 prohibits lawyers from sharing fees with non-lawyers, including PAs. § 626.854(13) prohibits PAs from paying or accepting referral fees. Result: no fee-sharing arrangements between PAs and attorneys are lawful in Florida — even when both are working the same claim.
5. Filing pleadings or motions on behalf of the insured. Even if signed by the insured pro se, ghostwriting court filings is UPL.
1.5.7 Action steps
- Read Florida Bar UPL Opinions on the Bar website — search for "public adjuster" + "UPL" rulings. The published opinions are your free training.
- When in doubt: stop, refer to an attorney, or document why the action is plain adjusting work.
- Build a referral list of 3–5 first-party property attorneys you trust before you need them.
Next: 1.6 How PAs Work With Attorneys on First-Party Property Claims — the team approach post-HB 837.
Educational. Not legal advice. Florida insurance law and Bar UPL standards change. SB 2A (Dec 16, 2022) and HB 837 (March 24, 2023) altered claim and attorney-fee rules; subsequent amendments may apply. Always verify current Florida Statutes, DFS guidance, and Florida Bar UPL opinions before relying on any specific rule.