Kickbacks for insurance agents is prohibited

I was asked by an inspector to re-post this information:

It appears that the 2014 legislative session introduced new language into law that prohibits inspectors from offering kickbacks, inducements, rewards, or referral fees to insurance agents, brokers, etc. for the referral of the homeowner to the inspector for insurance related inspections. See the following excerpt from the Florida Statutes:

“627.711(6)(a) An authorized mitigation inspector may not directly or indirectly offer or deliver any compensation, inducement, or reward to an insurance agency, insurance agent, customer representative, or an employee of an insurance agency for the referral of the owner of the inspected property to the inspector or the inspection company. Section 455.227(1)(k) applies to applicable licensees in violation of this paragraph.”

Additionally, an insurance agent cannot accept a kickback, inducement, reward, referral fee from an inspector as stated in the following statute:

“627.711(6)(b) An insurance agency, insurance agent, customer representative, or an employee of an insurance agency may not directly or indirectly receive or accept any compensation, inducement, or reward from an authorized mitigation inspector for the referral of the owner of the inspected property to the inspector or the inspection company. Sections 626.621(2) and 626.6215(5)(d) apply to a violation of this paragraph.”

While the DMI Declaratory Statement (2013-039) provided legal cover for inspectors to provide kickbacks to insurance agents, it now appears to be in direct conflict with the statutes noted above. The DMI Dec. statement is still posted and visible on DBPR’s home inspector licensing web page as of today. However, any inspector relying on the DMI Dec. statement and providing kickbacks to insurance agents would be appear to be in violation of F.S. 627.711(6)(a).

From Kickbacks for insurance agents? - Page 13 - InterNACHI Inspection Forum http://www.nachi.org/forum/f73/kickbacks-insurance-agents-85015/index13.html#ixzz3PK9aWKOf

Old news, it’s being addressed now…

Yes but worth repeating don’t you think? There may be some inspectors who are not as well versed in Florida Statutes as you. If an inspector were to rely on the DMI declaratory statement that is still posted on DBPR’S home inspector licensing web page as legal cover to provide kickbacks to insurance agents for referrals, they could find themselves in violation of the above referenced statute and facing enforcement action by the department (DBPR) that currently says they can give kickbacks. Kind of ironic isn’t it.

There are lots of new inspectors.

Agreed! And now we want a statement from the DBPR on the standards? They are 0 and 3 now for accuracy. There’s actually a Realty company in south Florida that has it’s own in-house inspection company titled with the name of the realty firm. I kid you not! I have reported them 50 times over with no response…

Hey Rob.
WHA?
Haven’t heard of this Realty with their own “no conflict of interest” HI company.
Do they really have a salaried staff, or is it subbed out?
Who is it? :wink:

KEYES…The name of the company is “Keyes Inspections”

Keyes huh… I know they do insurance & mortgages, but HI?
Send me your email (or phone) please.
Got some stuff to discuss if you want to.
inspect@alltropic.com

There is an inspector here in the Tampa Bay Area that is doing kick backs!!!
I have had several Insurance agencies now ask me if I give gift cards!!!
The answer is NOOOOOOO!!! I hope that this inspector sees this post and stops doing this!!!
Really I don’t want work from someone because I am giving them a reward!!! I want business from someone because they trust and like my work!!!

Are they in Miami?

I believe so, but the person I spoke with works out of the Delray Beach office…

C’mon.

Anyway, thanks Steve.

You can call him and talk to him, you can file a complaint against him with the DB PR and you can also file a complaint with Jeff Atwaters office against him and the insurance agents for taking kickbacks, or you can do nothing. If you do nothing then you have nothing to complain about

Mike, it appears there is a movement afoot to have HIs trained/certified as ICC inspectors. That is part of what you are seeing here lately.

And we all know who ICC’s Preferred Training Provider is: http://www.nachi.org/images2012/ICC%20Safe/ICC%20Provider%20Approval%20InterNACHI%202015.jpg:smiley:
%between%

Since there is no $ in insurance inspections, how can anyone afford to kick back?:roll:

They get the kick back, and then do the inspections at a discounted rate. Doing 15 inspections a day the inspector brings home $71. That’s enough for a round of drinks for some of us! :mrgreen: