Follow Adjusters International on Facebook & Instagram: Facebook.com/AdjustersInternational Instagram.com/AdjustersInternational ADJUSTING TODAY® is published as a public service by Adjusters International, Ltd. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases. Back issues of AT covering a variety of topics are available at www.adjustingtoday.com. ADJUSTINGTODAY® AdjustingToday.com View our entire catalog of back issues, download PDF versions, subscribe and contact the editor. EMAIL Info@AdjustersInternational.com WEB ADDRESSES AdjustersInternational.com AdjustingToday.com PUBLISHER Gregory P. Raab, MBA EDITOR Ethan A. Gross, JD AT27 3063 ABOUT ADJUSTERS INTERNATIONAL ADJUSTING TODAY® is published by Adjusters International Ltd. to educate professionals and consumers on significant issues for first-party property insurance markets and claims. A.I. is a consortium of the nation’s premiere public adjusting firms covering all 50 states, U.S. Possessions, the Caribbean, Canada, and selected international locations. Our member firms help businesses and homeowners get through some of life’s greatest catastrophes, by shouldering the burden of managing property insurance claims. Adjusters International represents policyholders only. We do not represent insurance companies. Our principal mission is to support families in their property, financial and emotional recovery; and to assist businesses with their property losses, including interruption of business, retaining employees, and serving customers. For help with a first party insurance claim please email info@adjustersinternational.com or visit our website at www.adjustersinternational.com. Copyright © 2026 Adjusters International, Ltd. All Rights Reserved. Adjusters International was formed in 1985 when thirteen of the public adjusting industry’s leading firms recognized the need for a unified, international network of highly skilled, licensed public adjusters. As losses grew more complex and far-reaching, these firms came together to ensure clients could access specialized expertise for any type of loss, anywhere, at any time. Each regional office operates as an independent firm while also serving as an owner and partner of Adjusters International. This unique structure preserves strong local knowledge while promoting accountability, shared responsibility, and collaboration across the organization. The result is a cohesive network that combines the strength and resources of a national organization with the responsiveness and expertise of locally owned firms to deliver consistent, high-quality service across all markets. KEY TAKEAWAYS KNOW THE LINE Contractors can inspect damage, prepare estimates, discuss repairs and answer construction questions—but representing the insured in claim negotiation is a different professional role. LICENSING MATTERS Public adjuster licensing helps ensure that the person advocating for a policyholder is qualified, regulated and acting independently of the contractor performing the repairs. CONFLICTS CAN ARISE When the same party controls both the repair work and the insurance claim, its financial interest in the scope of repairs may conflict with the policyholder’s broader interests. COURTS ARE REINFORCING THE DISTINCTION Recent decisions, including the 2024 Stonewater ruling in Texas, reinforce that public-adjuster laws regulate who may represent an insured in claim settlement—not ordinary discussion about repairs. AN AOB IS NOT A LICENSE Assigning the right to collect insurance proceeds does not give a contractor authority to negotiate or settle the claim for the insured. WATCH FOR RED FLAGS Be cautious of contractors who promise to “handle everything,” negotiate with the insurer or waive the deductible. Those offers can put the claim at risk. ABOUT THE AUTHORS Mr. Harrington is an independent business writer specializing in property and casualty insurance coverages and operations. He served for more than 21 years as communications director for the American Association of Insurance Services (AAIS) before starting his own writing practice in 2016. His work has been published in Best’s Review, Rough Notes, publications of The Institutes, and elsewhere, and he speaks regularly to insurance audiences. He serves on the CPCU Society’s Publications Committee. Mr. Beneke is President of The Beneke Co./Adjusters International in Austin, Texas, and a thirdgeneration public adjuster with nearly five decades of experience. He led the 2003 legislative effort that created Texas’ first public adjuster licensing law and helped the National Association of Insurance Commissioners develop a model licensing act. He is a past president and lifetime board member of the National Association of Public Insurance Adjusters, which named him its 2003 Person of the Year. Joseph S. Harrington, CPCU Jim Beneke, SPPA 1 Texas Department of Insurance v. Stonewater Roofing, Ltd. Co., No. 22-0427 (Tex. June 7, 2024). The Court held that Texas Insurance Code sections 4102.051(a) and 4102.163(a) regulate professional conduct and representative capacity, not protected speech, and rejected Stonewater’s First and Fourteenth Amendment challenges. 2 Florida Statutes section 627.7152(13) provides that, except as provided in subsection (11), a policyholder may not assign post-loss benefits under residential property insurance policies and certain commercial property insurance policies issued on or after January 1, 2023, and that attempts to do so are void, invalid, and unenforceable. 3 Texas Department of Insurance, Commissioner’s Bulletin B-0017-12, “Adjusting claims by unlicensed individuals and entities” (June 26, 2012), warning that insurers cannot use roofers as de facto public insurance adjusters and that unlicensed public-adjusting activity may be referred for enforcement. 4 33 Carpenters Construction, Inc. v. State Farm Life & Casualty Co., 939 N.W.2d 69 (Iowa 2020); 33 Carpenters Construction, Inc. v. Cincinnati Insurance Co., 939 N.W.2d 82 (Iowa 2020); 33 Carpenters Construction, Inc. v. IMT Insurance Co., 939 N.W.2d 95 (Iowa 2020). The Iowa Supreme Court held that contracts entered into by a residential contractor acting as an unlicensed public adjuster were void and unenforceable under Iowa law. 5 Rhode Island Department of Business Regulation, Insurance Division, Insurance Bulletin No. 2019-6, “Insurer Compliance with Law Prohibiting Engagement with Unlicensed Public Adjusters” (Nov. 21, 2019). The bulletin distinguishes permissible contractor communications from activities reserved to licensed public adjusters or attorneys, including negotiating, effecting settlement, preparing claims, and advocating for the insured in adjustment of the claim. 6 Some states, such as Illinois allow dual licensing as both a public adjuster and a repair contractor. While this is legal, the concerns raised in this article still hold true. While balancing these roles can, and often is, done properly where legally allowed, it is important for the public adjuster/ contractor to remember it is their fiduciary duty to always prioritize what is best for the insured, over their own interests. This article is intended for general informational purposes and is not legal advice. State licensing requirements, AOB restrictions, contractor rules, and enforcement practices vary by jurisdiction. SOURCES AND NOTES
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