Amendments to Act does not apply to adjusters

Amendments to the Law Society Act in Ontario in 2007 meant that those who provide legal services would be subject to licensing under the Act.

“For the purposes of this Act, a person provides legal services if the person engages in conduct that involves the application of legal principles and legal judgment with regard to the circumstances or objectives of a person,” the Act notes.

Whether this applied to independent adjusters became a topic among some members of the Canadian Independent Adjusters Association (CIAA).

Within the Act is a clause which states that, “For the purposes of this Act, the following persons shall be deemed not to be practicing law or providing legal services: 1. A person who is acting in the normal course of carrying on a profession or occupation governed by another Act of the Legislature, or an Act of Parliament that regulates specifically the activities of persons engaged in that profession or occupation . . . “

After reviewing material provided by Cunningham Lindsey’s general counsel, it was determined that because independent adjusters are governed by the Insurance Act in Ontario and as long as adjusters are acting within the bounds of that license, the amendments to the Law Society Act would not apply to adjusters, Fred Silvestri, director of CIAA notes.

“We want to make members aware that this concern is out there, but as licensed adjusters we should be okay,” Silvestri adds. “However, the only area of concern may be for adjusters providing claim consulting services; at times they might cross the line and act in a legal capacity . . . that’s going to be a call that every adjuster or individual firm will have to make.”