Harvey V. Cohen Esq. Cohen Battisti & Grossman Attorneys

2. Building Your Case For Success From The 1st Emergency Phone Call Requesting Services Harvey V. Cohen Esq. Cohen Battisti & Grossman Attorneys

3. We Also Offer Areas of Practice in the Following Family LawEmployment LawServer and Bartender RightsADA CompliancePersonal Injury Criminal DefenseWrongful DeathWorkers Compensation

4. Presentation Overview • Myths & Truths About Assignment of Benefits, • Dealing with mortgage companies that receive your payment for services performed • Group Exercise: Hands on Activity- What would you do? • How to keep your claim separate –don’t act like a public adjuster if you’re not licensed to do so.

5. Myths & Truths About Assignment of Benefits

6. Learning Outcomes 1st Hour • Help you understand the truths and myths behind an assignment of benefits contract. • This segment will help the contractor understand the advantages of using an assignment of benefits in their contract. One of the benefits is that the insurance company deals directly with the business (YOU) as opposed to the property owner. • The following informaitonwill help identify the differences between a first party and a third party contract including the legal consequences of each. • Attendees will understand how an assignment of benefits contract is different than a direction to pay.

7. Myth #1 MYTH 1: ASSIGNMENTS OF PROPERTY INSURANCE BENEFITS ARE A RECENT PHENOMENON FACT: ASSIGNMENTS OF POST-LOSS BENEFIT PAYMENTS HAVE BEEN RECOGNIZED BY FLORIDA LAW FOR OVER 100 YEARS For OVER

8. Myth #2 MYTH 2: ASSIGNMENTS OF BENEFITS GIVE CONTRACTORS SPECIAL RIGHTS THE POLICYHOLDER WOULD NOT HAVE FACT: ASSIGNMENTS OF BENEFITS DO NOT GIVE CONTRACTOR’S ADDITIONAL RIGHTS

9. Myth #3 MYTH 3 :ASSIGNMENTS OF BENEFITS ALLOW CONTRACTORS TO INFLATE PRICES FACT: ASSIGNMENTS OF BENEFITS HAVE NO IMPACT ON A CONTRACTORS ABILITY TO INFLATE PRICING

10. Myth #4 MYTH 4: ASSIGNMENTS OF BENEFITS ALLOW CONTRACTORS TO FILE LAWSUITS WITHIN DAYS OF A CLAIM BEING FILED FACT: ASSIGNMENTS OF BENEFITS DO NOT OVERRIDE INSURANCE POLICY PROVISIONS ALLOWING CERTAIN TIME PERIODS FOR COVERAGE DETERMINATIONS

11. Myth #5 MYTH 5: ASSIGNMENTS OF BENEFITS ARE NOT FAIR BECAUSE THEY VIOLATE “NON-ASSIGNMENT” CLAUSES IN INSURANCE CONTRACTS FACT: ASSIGNMENTS OF BENEFITS ONLY ASSIGN THE RIGHT TO RECEIVE PAYMENT FOR SERVICES PERFORMED, NOT THE INSURANCE POLICY ITSELF

12. Myth #6 MYTH 6: ASSIGNMENTS OF BENEFITS LET CONTRACTORS CIRCUMVENT POLICY OBLIGATIONS FACT: EVEN WITH AN ASSIGNMENT, ALL POLICY OBLIGATIONS REMAIN WITH THE HOMEOWNER AND WILL BE ENFORCED BY FLORIDA COURTS

13. Myth #7 MYTH 7: CONTRACTORS WHO TAKE ASSIGNMENTS OF BENEFITS ARE CLAIMING OWNERSHIP OF THE ENTIRE CLAIM, NOT JUST PAYMENT FOR SERVICES THEY PERFORM! FACT: ASSIGNMENTS OF BENEFITS ONLY TRANSFER THE RIGHT TO RECEIVE PAYMENT FOR CONTRACTED SERVICES, NOT AN ENTIRE CLAIM

14. Myth #8 MYTH 8: CONTRACTORS WHO RECEIVE ASSIGNMENTS OF BENEFITS VIOLATE FLORIDA’S “PUBLIC ADJUSTING” STATUTE FACT: AN ASSIGNMENT OF BENEFITS IS LEGALLY DISTINCT FROM PUBLIC ADJUSTING

15. Myth #9 MYTH 9: AN ASSIGNMENT OF BENEFITS VIOLATES FLORIDA STATUTE 627.405 BECAUSE CONTRACTORS DON’T HAVE AN “INSURABLE INTEREST” IN THE PROPERTY FACT: FLORIDA STATUTE 627.405 ONLY REQUIRES THAT THE POLICYHOLDER HAVE AN INSURABLE INTEREST AT THE TIME OF THE LOSS

16. Myth #10 MYTH 10: AN ASSIGNMENT OF BENEFITS VIOLATES FLORIDA’S “LIEN LAWS” PURSUANT TO FLORIDA STATUTE 713.32 FACT: FLORIDA STATUTE 713.32 ONLY DEALS WITH APPLICATIONS TO PLACE A LIEN ON PROPERTY; AN ASSIGNMENT OF BENEFITS IS NOT A LIEN OR AN APPLICATION FOR A LIEN.

17. Group Exercise Attendees will break out into groups to work together to determine the scope of work and step by step approach on how to proceed with an emergency restoration job.

18. Learning Outcomes 2nd Hour • This hands on exercise will help you understand the importance of gathering proper documentation and evidence from a job. • This workshop will help the contractor communicate important information that will be necessary so the contractor can be paid by the insurance carrier. • Tips on how to prevent the adjuster from claiming that your work wasn’t properly done. • Gain knowledge from your peers as to how they would approach the emergency water restoration jobs. • Understand the Do’s and Dont’s on an emergency services job.

19. Group exercise: Attendees will break out into groups to work together to determine the scope of work and step by step approach on how to proceed with an emergency restoration job Scenario #2 Mrs. Presley calls the plumber and tells him the lead line to the heater is leaking from the connection. The emergency services company and the plumber come out to view the damages on the same day. The emergency services company dries out the affected areas and finishes the job. After the house is dried out and the job is completed, the insurance adjuster finally arrives. The adjuster states this leakage was not accidental, that there are still moisture readings and there was long term seepage. There is no documentation explaining what the piped looked like before the emergency services performed the job. There were no pictures taken, and there was not much documentation for this job. The insurance company denies the claim. Please describe how you would handle this job and what your company may have done differently. Include what steps you would take knowing that the claim has been denied. Scenario #1 Mr. Roach wakes up at 4 am and discovers that his living room and kitchen is inundated with water. The total square footage that was affected was about 600 square feet. Mr. Roach turns off the water main. He calls the plumber and the emergency water restoration company at 7:00 am to help stop and dry out the water. Some of Mr. Roach’s furniture and personal belongings were damaged during the water event. Mr .Roach calls the insurance company the next day after the incident. The emergency services company is still working on the home when the insurance adjuster arrives to determine the damages. Briefly, please come up with a synopsis on how you would proceed with remediating the job from start to finish, starting with the first contact with the home owner, until the time you submit the insurance claim to the insurance company. How would you document your work from beginning to end? Please provide the invoicing procedures and submittal to the insurance company.

20. Scenario #1 • What’s the first thing you’re going to do when you arrive to the client’s home? • How do you converse with the homeowner in regards to payment for services? • How do you decide what equipment to use and what tools do you use to document the job? • As the job is taking place, how do you measure progress? How do you determine the work is done? • What are you going to send the insurance company? How do you submit a claim and how do you word your correspondence with the insurance carrier to avoid acting like a public adjuster?

21. Scenario #2 • How do you prevent the adjuster from claiming that your work wasn’t done properly? • What would you do to gather evidence for the job? • Would you discuss details of the loss with the homeowner? • How would you proceed if the claim is denied? Who pays for your services provided?

22. Mortgage Companies That Receive Your Payments for services Performed

23. Learning Outcomes 3rd Hour • Attendees will learn how to work with the mortgage companies in order to quickly expedite their checks for the remediation job performed. • Participants will review, have access to, and gain knowledge on legal documents that will allow them to more effectively speak to the mortgage company directly. • Attendees will identify problem solving techniques on how to address the issues of mortgage companies that have not endorsed or are holding onto their checks for jobs performed.

24. Mortgage Companies That Receive Your Payments for services Performed • Many contractors have questions regarding to mortgage companies holding their checks. If a company does remediation work, the mortgage company “should not” be holding the check and the contractor “should” receive the funds after the services are rendered. If the mortgage company does not want to hand over the check, a contractor has the right to send the claim to an attorney in order to collect the funds. • In the state of Florida, with an assignment of benefits, the contractor stands in the shoes of the insured and is able to receive the benefits of the claim as if the contractor were the policy holder. This means both the mortgage company and insurance company will have to deal with the contractor/service provider directly. The attorneys may also be able to sue the insurance company for unjust enrichment. Cited references Robert Aldana v. Colonial Palms Plaza, Ltd.

25. Consent to Discuss Claim with the Mortgage Company

26. Don’t Act Like a Public Adjuster- How to Keep Your Claim Separate

27. Learning Outcomes 3rd Hour This seminar will provide information on how to work with public adjusters to have a smooth transition before, during and after the insurance claim. 2. The seminar will help identify the legal do’s and don’ts when assisting the homeowner with their remediation, emergency services, or rebuild insurance claim.

28. Do’s & Dont’sAre you doing any of the following? Calling the claim for the insured? Handling ALE/homeowner damages for the homeowner? Submitting the plumber’s bill with the restoration company’s own bill? Advertising or solicitating that they handle the entire claim from start to finish.

29. Can you do this for your client? Example 1. Restoration company X handles everything on behalf of the insured because they say the following: "I AM a public adjuster! I got a license but I don't use it anymore." Can you do this? NO! Several of our clients have PA licenses but were not hired by the insured in that capacity, so acting as a PA is improper.

30. Can you do this for your client? Example 2. Discuss your bill for your services with an insured. Yes!

31. Can you do this for your client? Example 3. Ask the insurance company for a copy of the policy and discuss the policy and what damage should be covered with the insured. NO!

32. Can you do this for your client? Example 4. Fill out insurance claim documents for an insured whose first language is not English. NO!

33. Can you do this for your client? Example 5. If you have an assignment of benefits, can you negotiate the bill directly with the insurance carrier? YES!

34. Can you do this for your client? Example 6. Call the insurance company to obtain a claim number when they know the insured hasn't made a claim yet. NO!

35. Can you do this for your client? Example 7. Can you waive the deductible? NO!

36. Should you do this? Example 8. The homeowner will not be home during the remediation and construction period. They ask you for a favor to give the public adjuster their receipts/paperwork for their insurance claim. Is it ok to do this? NO!

38. Additional Resources Division of Agent & Agency Services http://www.myfloridacfo.com/Division/Agents/Industry/default.htm#.U2vJvPldVyw

39. Thank You! Harvey V. Cohen Esq. Cohen Battisti & Grossman For more information please call 407 766-0585 (Cell) 407 478-4878 (Office) www.CohenBattisti.com