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Wednesday, April 23, 2025

Roofer Agrees to Stop and Desist Consent Order Stopping Promoting and Performing As a Licensed Public Adjuster


As a follow-up to my submit, All people Should Observe the Legislation—Insurance coverage Restoration Contractors Must Cease Performing as Public Adjusters or Face Fines and Class Motion Lawsuits, a Consent Order 1 was lately issued by the Iowa Insurance coverage Commissioner by which Darren Reeves and his firms, Darren Reeves Roofing LLC and Darren Reeves Building LLC, have been discovered to have engaged in unlicensed public adjusting actions. This case supplies necessary classes for contractors and insurance coverage professionals in regards to the strict separation between contracting and public adjusting providers.

The investigation revealed that Reeves and his firms marketed and carried out public adjusting providers with out correct licensing. By their web site, Fb web page, and direct communications with potential purchasers, they promoted their skill to “work with insurance coverage firms” and deal with insurance coverage claims on behalf of property house owners. In a single significantly telling occasion, Reeves instructed an undercover investigator that he would “deal with the whole lot” with the insurance coverage firm, clearly moving into the function of a public adjuster.

A key incident concerned Reeves’s work with a industrial farm enterprise, M&M LLC, the place he negotiated instantly with Farm Bureau Insurance coverage concerning declare settlements and Xactimate estimates. When Farm Bureau refused to switch their estimate as requested, Reeves despatched a confrontational e-mail threatening to contain a licensed public adjusting agency. Any such direct negotiation with insurers is exactly what Iowa regulation reserves for licensed public adjusters.

The case highlights a number of important compliance points. First, Iowa Code § 522C.4, like most public adjuster licensing codes and laws all through the USA, explicitly prohibits anybody from working as or representing themselves as a public adjuster with out correct licensing. Second, beneath Iowa Code § 103A.71(3), residential contractors are particularly barred from representing or negotiating on behalf of property house owners concerning insurance coverage claims. These laws create a transparent boundary between building providers and claims adjusting that contractors should respect.

For these representing policyholders, this case reinforces the significance of sustaining correct licensing and understanding the strict limitations on contractor involvement within the claims course of. Whereas contractors might have priceless experience in figuring out injury and offering restore estimates, they have to be cautious to not cross the road into public adjusting actions.

In All people Should Observe the Legislation—Insurance coverage Restoration Contractors Must Cease Performing as Public Adjusters or Face Fines and Class Motion Lawsuits, I famous the next lesson for all restoration contractors:

[I]t is obvious that these legal guidelines and actions violating them are on the minds of insurance coverage regulators. Restoration contractors can anticipate enforcement of those legal guidelines and may chorus from appearing or contracting to be public adjusters if the relevant state regulation prohibits the identical.

To make sure compliance, I urge all insurance coverage restoration contractors to get a reliable authorized opinion from an legal professional who is aware of about these points, will evaluation the promoting, and approve the contracts which are to be signed by policyholders needing restoration or disaster work. If the contracts will not be authorized and violate the regulation, the quantities charged might find yourself being forfeited. Worse, if the contract as written is prohibited, it may present a foundation for a category motion lawsuit the place all monies obtained by such unlawful contracts are voided.

The consent order serves as a reminder that state insurance coverage regulators take these violations severely. Roofers and restoration contractors play a vital and necessary function in restoration after a loss. Nonetheless, all contractors who take part in or promote that they provide claims adjustment providers are topic to disciplinary and different civil lawsuits accusing them of appearing as public adjusters and breaking the regulation. This case and Consent Order spotlight the significance of guaranteeing that each one events concerned within the claims course of are working inside their correct roles.

I predict that extra state insurance coverage commissioners will observe with comparable actions. Texas began these kind of enforcement actions, as famous in Stonewater Case Determined for Texas Division of Insurance coverage and In opposition to the Free Speech Arguments Which Would Have Gutted Public Adjusting Licensing Legal guidelines. Iowa’s profitable prosecution of comparable instances begins a pattern.

Thought For The Day

“Have the braveness to say no. Have the braveness to face the reality. Do the suitable factor as a result of it’s proper.”
—W. Clement Stone


1 Within the Matter of Darren Reeves Roofing, Div. Case No. 122515 [Order and Consent to Order] (Iowa Ins. Comm. Dec. 11, 2024).



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