Ch 1 · How to Become a Public Adjuster in Florida
Module 1.4
§ 626.854 Deep Dive — PA Conduct Rules
Compensation caps. Solicitation rules. Contract requirements. Prohibited conduct. Penalties. The rules that revoke licenses.
15 min read
What you'll learn
The conduct rules in § 626.854 that govern every act you take as a PA. Compensation caps. Solicitation rules. Contract requirements. Prohibited conduct. Penalties for violation.
This is the section that revokes licenses. Read it twice.
1.4.1 Compensation caps — § 626.854(11)
| Claim type | Fee cap | Applies for |
|---|---|---|
| Declared state of emergency (hurricane, etc.) | 10% of claim payments | First 1 year after date of loss |
| Non-emergency claims | 20% | All claims |
| Reopened or supplemental claims | 20% of new recovery only | Cannot stack on previously paid amounts |
Hard rules:
- Fee calculated on the amount paid by the carrier — not the amount claimed.
- Deductible is excluded from the fee base. PA cannot charge the % on money the insured was going to pay anyway.
- "Any maneuver, shift, or device" to exceed these caps is a violation under § 626.8698.
Fee structure must be in writing. Verbal agreements are unenforceable and a disciplinary issue.
1.4.2 Solicitation rules
48-hour cooling-off period after a loss event:
PA may not initiate contact with the insured for 48 hours after a loss unless the insured initiates contact first.
During and after declared emergencies: the same 48-hour rule applies — restated in the emergency context to make clear it survives storm response.
Practical: keep written records. A timestamped voicemail from the insured, a text, a webform submission — anything proving they reached out first. Without it, an enforcement action becomes your word against theirs.
1.4.3 Contract requirements — § 626.854(6)–(8)
Every PA contract in Florida must:
| Requirement | Detail |
|---|---|
| Format | Written, minimum 12-point type |
| Title | Must be titled "Public Adjuster Contract" |
| Fraud statement | § 817.234 + § 626.8796 fraud notice in 18-point bold type above the signature line |
| PA identification | Full name, business address, license number |
| Cancellation right | 10-day cancellation notice in 18-point bold type |
| Cancellation method | Certified mail or other proof-of-mailing method |
| Emergency cancellation | During declared emergencies + for 1 year after date of loss: additional 5-business-day cancellation right |
| 60-day estimate rule | If PA fails to deliver written, itemized estimate within 60 days, insured can cancel without penalty (§ 626.854(12)) |
File the contract with DFS within 30 days of execution. Standard practice — most firms automate this.
Common contract failure points:
- Missing 18-point fraud statement → contract voidable
- Wrong cancellation language → contract voidable
- Missing license number → DFS discipline
1.4.4 Prohibited conduct — the do-not-do list
§ 626.854 enumerates conduct that triggers license revocation. Memorize these.
Inducement / payment prohibitions
- No loans or cash advances to the insured — § 626.854(9)
- No gifts, gift cards, rebates, or merchandise over $25 as inducement — § 626.854(10)
- No referral compensation arrangements — § 626.854(13)
- PA cannot pay non-PAs for referrals
- PA cannot accept paid referrals from business partners
- This rule is enforced. Aggressively.
Property and contractor restrictions
- No interest in salvaged property without written consent of the insured.
- Cannot do public adjusting AND construction work on the same property. Bright line. Pick one role per claim.
- Cannot accept a power of attorney that lets the PA pick contractors/vendors for the insured.
Roof claim restrictions — § 626.854(23)
Major post-2021/2022 reform aimed at the roofing solicitation problem.
PA cannot offer:
- Rebates
- Gift cards
- Deductible waivers
- Any inducement in exchange for roof inspections or roof claims
This includes "free roof inspection" advertising tied to claim solicitation. Enforcement has been active.
Cooperation with insurer
- PA cannot obstruct, delay, or block insurer access to the property or insured.
- Insurer must give 48-hour notice before meetings/inspections.
- PA must promptly notify insurer of the claim, send the contract, and make the property available.
1.4.5 Subsections (5)–(18) — residential only
Important scope limit:
§ 626.854(5)–(18) — the bulk of the conduct rules — apply only to residential property and condo unit-owner policies.
Commercial PA work: more lightly regulated. Licensing and core conduct rules still apply, but contract format, fee caps, and solicitation rules are looser. Don't assume the residential rulebook covers commercial work — re-check the statute.
1.4.6 Penalties
| Violation | Penalty |
|---|---|
| Unlicensed PA practice | 3rd-degree felony — § 626.8738. Up to 5 years prison + $5,000 per violation. |
| Exceeding fee caps via "maneuver, shift, or device" | License discipline + restitution — § 626.8698 |
| Solicitation rule violation | License suspension/revocation |
| Contract format violation | Contract voidable; license discipline |
| Inducement / referral fee violation | License suspension/revocation |
| Roof claim inducement (§ 626.854(23)) | License suspension/revocation; recent enforcement priority |
DFS publishes enforcement actions. Read them. Other PAs' mistakes are your free education.
1.4.7 Action steps
- Read § 626.854 in full at leg.state.fl.us. All 25+ subsections.
- Get a current DFS-compliant PA contract template from your supervising PA or firm. Compare it against the requirements in 1.4.3.
- Set DFS contract-filing reminder (30 days from each execution).
- Subscribe to DFS enforcement bulletins.
Next: 1.5 PAs and the Unauthorized Practice of Law (UPL).
Educational. Not legal advice. Florida insurance law changes frequently. 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 and DFS guidance before relying on any specific rule.