The Department of Financial Services hereby states the following circumstances constitute an immediate danger to the public health, safety, and welfare: This emergency rule is necessitated by a storm system (reportedly with tornadic activity) which passed through Florida in the early morning hours of February 1, 2007. This storm system (with its reported tornadic activity) caused a number of fatalities and widespread property and infrastructure damage in a number of Florida counties. Because of this hazardous weather system (and possible tornadic activity), Governor Charlie Crist declared a State of Emergency exists in Lake, Seminole, Sumter, and Volusia Counties, Florida (Executive Order Number 07-21). Excessive adjusting fees are a source of injury to the public health, safety, and welfare by substantially impairing the financial ability of insureds to effectuate repairs to damaged property in a timely fashion, to commence or complete repairs, or to make proper and adequate repairs meeting building code requirements. In order for complete rebuilding to occur, insurance proceeds cannot be eroded by unreasonable public adjuster fees. As a result, there is a need to limit the fees imposed by public adjusters to a reasonable level. The rule prohibits public adjusters from collecting a fee based upon policy limits where the subject property has been declared a total loss by the insurer, unless that public adjuster was involved in negotiating a dispute as to whether that property was a total loss. The rule provision relating to time necessary to rescind a contract is reasonable and necessary based on the department’s experience with public adjuster abuses after prior hazardous weather systems (such as the hurricanes of 2004-2005) have impacted Florida. The Legislature recognized, in Section 626.8698, F.S., that the interest of the public demands that public adjusters be prohibited from “soliciting or otherwise taking advantage of a person who is vulnerable, emotional or otherwise upset as a result of trauma, accident or similar occurrence…” This hazardous weather system (with possible tornadic activity) has placed a great number of people in a state of vulnerability. The emotional stress of claimants may lead them to make imprudent decisions in the context of contracting with public adjusters. In consideration of the emergency conditions currently existing, and given the Department’s responsibility to protect the public interest, including insureds, and implement the Insurance Code, an emergency rule is necessary.