The American Association of Public Insurance Adjusters www.aapia.org serves as a representative voice for members and policyholders.  Public Adjusters only represent the policyholder negotiating fair and reasonable claim settlements when a homeowner incurs a property loss.

The June 6, 2012 NICB article NICB Warns Storm Victims: Beware of Contractor Scams --  http://www.marketwatch.com/story/nicb-warns-storm-victims-beware-of-contractor-scams-2012-06-06 cautions: "Make sure the public adjuster does not intentionally delay reporting your claim."  How inaccurate this statement is when in the 2010 publication by Professor Jay M. Feinman he clearly sets the record straight on who is intentionally delaying, denying and defending a homeowner's claim. www.delaydenydefend.com Feinman's book reports on the manner in which insurance companies fail to honor the terms of their policies and their promise of security of a homeowner's most expensive asset - their property.

Public adjusters, licensed in 45 states and the District of Columbia, must provide prompt notice to an insurer for which the public adjuster is handling the claim for a claimant or insured and it is important to mention that complaints against a public adjuster are far less than those against insurance executives and companies who are at times fined for misleading the policyholder on the terms of coverage they have in the their policy.  Significant case in point this month - Travelers to Pay $10.5M in Premium Refunds and Fines, June 18, 2012, enforcement action announced by the California Department of Insurance.   http://insurance.ca.gov/0400-news/0100-press-releases/2012/release075-12.cfm

According to Feinman, Policyholder Insurance doesn't work when the insurance company fails to honor the terms of the policy and its promise of security through the strategy that has become known as "delay, deny, and defend.  Professor Feinman adds that the company delays payment of a claim, denies all or part of a valid claim, or aggressively defends litigation, and the policyholder is then forced to take legal action to obtain what he is rightfully owed.

The claims department's only job is to pay what is owed, no more but no less. A classic text used to train adjusters, James Markham's The Claims Environment, states the principle: "The essential function of a claim department is to fulfill the insurance company's promise, as set forth in the insurance policy. . . . The claim function should ensure the prompt, fair, and efficient delivery of this promise.

AAPIA highly recommends to all policyholders and regulators to read Professor Feinman's book entitled Delay, Deny Defend, "Why Insurance Companies Don't Pay Claims and What You Can Do About It"!  An excerpt of this book can be found on AAPIA's website at www.aapia.org or by visiting Professor Feinman's website www.delaydenydefend.com  

Public adjusters do serve the insured well in the role as consumer advocates for homeowners and business owners who suffered a loss to property.  AAPIA has also been very active in the passage in 2005 of the Public Adjuster Licensing Model Act by the National Association of Insurance Commissioners ("NAIC").  The NAIC Model Act - that governs the qualifications and procedures for the licensing of public adjusters and specifies the duties and restrictions on public adjusters - has now been enacted in 14 states.  The NAIC Model Act also has a Code of Ethics as part of the statute.  

AAPIA is a 501(c)(6) organization. Our association is proud to serve the public as a consumer advocate as well as the public adjuster industry through support, education programs, and assurance of compliance with ethical requirements.  

AAPIA's General Counsel forwarded a letter on June 21 to PR Newswire in response to the inaccuracies in NICB's June 6 article.  Click here to view AAPIA's June 21, 2012 Letter. 

Best in life always,  

Gene G. Veno  

10th Floor

Washington, DC 20036

202.640.2014

www.aapia.org