Wisconsin’s Insurance Commissioner, Nathan Houdek, has ordered a contractor to pay $6,000 in fines after discovering he was acting as a public adjuster without following state rules. The contractor combined home repair work with “claim assistance” by using assignments of benefits—a practice that broke Wisconsin law.
Under state law, public adjusters cannot have any financial interest in the insurance claim beyond what they are paid in their contract. This means they can’t profit from the claim itself or the repair work tied to it. The contractor’s business model went against this rule by mixing repairs with claim handling, leading to prohibited and fraudulent behavior.
Commissioner Houdek emphasized that anyone acting as a public adjuster in Wisconsin must stick to the rules. “Consumers need to trust that the people helping with their insurance claims don’t have hidden financial motives and are honest with insurers and regulators,” he said.
The Office of the Insurance Commissioner also warned people to be cautious when signing contracts that assign their insurance benefits to contractors or other third parties. Public adjusters in Wisconsin are not allowed to ask for or take over an insured person’s insurance payments.
This case serves as a reminder to homeowners to carefully read the fine print when dealing with contractors and insurance claims. It’s important to know who is representing you and whether they follow the law to protect your interests.