Reflections on an Insurance Regulatory Workshop Regarding Ethical Rules of Adjustment
The Florida Department of Financial Services (DFS) held a regulatory workshop meeting seeking comments on the recent emergency adjustment rule. One thing everybody notices in Tallahassee is that there is an army of paid lobbyists and professional proponents of the insurance industry who show up at hearings.
These professional insurance lobbyists and industry folk must work out a script in advance. The entire hearing was dominated by these professionals. Of course, there are no professionals for the policyholders.
My first reflection on this workshop is truly how one-sided every meeting must be for politicians and insurance regulators because there is no countervailing point of view. Tasha Carter, who is Florida’s Consumer Insurance Advocate, did not say anything. There is no professional policyholder lobby. A few volunteers and interested people like me show up.
Another thought I had was about the person who sent out the notice and the high quality of many civil servants who quietly held their jobs through various political administrations and have seen numerous agendas throughout their careers. In this case, Greg Thomas is the person and here is his background:
Greg Thomas is Director of Insurance Agent & Agency Services, within the Department of Financial Services (DFS), under Chief Financial Officer Jimmy Patronis. His responsibilities include the licensing and oversight of all insurance agents, agencies, and adjusters in the state of Florida. During his tenure, he has also led the Department’s alternative dispute programs, call center and consumer complaints sections.
Greg earned his master’s degree in risk management & insurance from Florida State University and has earned multiple professional designations in insurance, including Chartered Property Casualty Underwriter (CPCU), Chartered Life Underwriter (CLU), and Fellow, Life Management Institute (FLMI).
Greg has 38 years of experience in the insurance industry, including 6 years as an agent and 32 years as a regulator. He has earned licensure as a General Lines Property & Casualty Insurance Agent and a Life & Health Insurance Agent.
The qualifications and experience of some insurance regulators like Thomas have to be admired. I previously noted this in Empowering Policyholders: How to Collaborate with State Insurance Departments for a Better Insurance Landscape:
Peg Brown is the Chief Deputy Commissioner for the Colorado Division of Insurance. When she made an announcement this week at the Rocky Mountain Association of Public Insurance Adjusters (RMAPIA) that she would be retiring, I was sad. It is my impression that Peg is in her prime with passion and experience that genuinely helps Coloradans and Colorado’s insurance market. I would not have felt this way a decade ago. But over the years, I have come to appreciate Peg’s views and proactive endeavors to improve insurance for everybody. She will be missed.
I sometimes wonder how difficult it is for intelligent, qualified, and otherwise passionate insurance regulators to freely be able to do their job when their political bosses have a political agenda and are receiving large donations from professional insurance lobbyists. I ask that open-ended question in all sincerity because I have no idea what the answers may be. I also feel guilty because I am certain that I project that they may have to do what the political leader demands so long as it is not illegal.
Another reflection is that everybody seems to agree that a lot more transparency is needed from those generating estimates. If there is one hope from the CBS 60 Minutes exposé, noted in CBS 60 Minutes Exposes Alleged Insurance Company Fraud: Adjusters Reveal Altered Hurricane Damage Estimates by Claims Management, policyholders and the property insurance adjustment and estimating process demand more honesty and transparency.
Finally, a former independent adjuster turned public adjuster, Cindy Dycus-Bootier, presented the nicest, most detailed, and most believable comments about how she decided to leave adjusting for insurance companies because claims management was systemically underpaying or delaying payments to policyholders. I am sure that the professional insurance industry lobbyists were cringing while listening to her testimony. Her story was just like the CBS 60 Minutes whistleblowers.
I do not know where she came from, but I was certainly happy she took personal time to show up and speak out. Regulators need to know there are many ethical and talented independent and company field adjusters who feel just like her and have similar stories about the systemic underpayment that goes on with some Florida insurers.
The time to file written comments is until November 12. Comments can be sent to Greg Thomas at Greg.Thomas@myfloridacfo.com.
Thought For The Day
Do it! What are you waiting on? Do it! Stand up for what you believe in. The world needs your voice. Whoever you are, you have something to say. Say it.
—Kerry Washington
