Recon Roofing & Construction of Des Moines has entered into a consent order with the Iowa Insurance Division after being accused of acting as an illegal adjuster for customer insurance claims. The company has agreed to refrain from assisting clients in negotiations and to amend their contractual language. This follows a trend of increasing regulation on contractors amid rising insurance claims in Iowa, underlining the importance of compliance with state laws.
Recon Roofing & Construction, an Iowa-based roofing contractor, recently signed a consent order with the Iowa Insurance Division to resolve allegations regarding illegal behavior as an adjuster for insurance claims. Under the terms of the agreement, Recon has committed to ceasing assistance to clients in negotiating insurance claims and has also agreed not to advertise employee assistance for these claims. The company will amend terms within their customer contracts that previously allowed negotiation with insurance carriers. Public adjusters, who advocate for clients while negotiating insurance payouts for damages, must possess a valid license in Iowa. The Illinois laws preclude contractors from simultaneously acting as adjusters on the same project. The state has intensified scrutiny on contractors amid rising insurance claims related to storm damage, which has contributed to increasing premiums. Earlier this year, the Iowa Insurance Division issued cease-and-desist orders to several contractors, including Recon Roofing, over violations of public adjusting regulations. Additionally, allegations surfaced that Recon falsely claimed on its website to employ a licensed public adjuster. In response to the disciplinary actions, the company has actively sought compliance through revisions of its practices and retraining of personnel. Daniel Shipton, the general manager of Recon, characterized the company’s oversights as “honest mistakes” and stated that remedial measures had been taken swiftly. Recon continues to demonstrate a proactive approach in adhering to compliance measures mandated by the regulators. Following the hearing with Insurance Commissioner Doug Ommen, progress was acknowledged by the Iowa Insurance Division. Chance McElhaney, spokesperson for the Insurance Division, expressed appreciation for Recon’s collaboration in addressing the issues, recognizing the company’s commitment to aligning with state laws. The recent changes reflect a broader trend of regulatory vigilance towards contractors operating in the insurance adjustment sphere. The case of Recon Roofing underscores the imperative for contractors to remain informed of legal obligations and to maintain transparency with clients regarding their operational capabilities in claims management.
The growing number of insurance claims, particularly those related to wind and hail damage, has prompted increased regulation on contractors in Iowa. The rise in claims has led to scrutiny over the roles played by public adjusters and contractors, with laws stipulating licensing requirements and restrictions against dual roles on projects. Iowa regulators are working to manage these dynamics as insurance premiums continue to escalate, implementing measures to curb practices deemed illegal within the industry.
The consent order signed by Recon Roofing & Construction signifies a commitment to adhere to regulatory standards in the insurance adjustment context. By amending their business practices and ensuring compliance with Iowa law, the company aims to rectify previous missteps. The collaboration between the contractor and the Iowa Insurance Division highlights the importance of regulatory frameworks in maintaining ethical practices in the insurance sector, serving as a precedent for other contractors in the industry.
Original Source: www.desmoinesregister.com
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