Commissioner Lara puts Insurance Fraud Team on Alert and on the Ground for Illegal Activities as Wildfire Recovery Begins
Action Alert: Insurance Commissioner Ricardo Lara has deployed his insurance fraud team in wildfire-devastated areas to be on high alert for illegal activities as evacuations and recovery continues. He issued a notice to public adjusters reminding them of the laws that are in place for how and when they may contact those affected by wildfires. And he urged wildfire survivors to file claims with their insurers and to report high-pressure tactics from adjusters or contractors to the Department of Insurance. This follows his announcement of a moratorium against non-renewals and other actions to protect wildfire survivors.
Commissioner’s POV: “As Angelenos begin the challenging journey of recovery from these devastating fires, it’s crucial to take the time to carefully evaluate your options before hiring a public adjuster or contractor. My Department is here to support you every step of the way and can assist in navigating the recovery process so you are protected and have the information you need to make informed decisions.”
Background: Insurance companies are required to provide an adjuster to assist consumers with their claims. The Department of Insurance urges consumers to begin the claims process by contacting their insurance company or agent and try to settle their claims before contacting a public adjuster or a lawyer. If consumers have questions or concerns about their claim, what their insurer is telling them, or settlement offers, the Department’s consumer services team is prepared to assist -- there is no charge for that assistance.
Public adjusters do not work for insurance companies, but rather work directly for policyholders who hire the adjuster for a fee to settle their insurance claim. Public adjusters’ fees are paid by the policyholder and are typically a percentage of the settled claim, which means it comes out of the funds used to rebuild or recover.
State law prohibits public adjusters from soliciting business in disaster areas for at least seven days after the conclusion of an evacuation order, providing a buffer to protect residents from any high-pressure tactics.
Before hiring an adjuster the Department urges consumers to check the public adjuster’s license and make sure they are properly licensed and in good standing by visiting the Department’s website or by calling 800-927-4357.
What’s next: Commissioner Lara announced free two-day insurance support workshops on January 18 and 19 in Santa Monica and January 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery. These workshops are open to all those impacted by the recent wildfires. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert. Visit www.insurance.ca.gov.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
