Which states require a Public Adjuster to have a license? What is the process for a Public Adjuster to secure a license? What is a surety bond and how does a Public Adjuster secure one? Tiger Adjusters® answers these questions and more.
Get Help with Your Insurance ClaimReady to become a Public Adjuster? Most states require a license to be issued through their Department of Insurance.
EXAMPLE: LICENSE REQUIREMENT
Texas law states: Sec. 4102.053. ISSUANCE OF LICENSE TO RESIDENT. (a) The commissioner shall issue a public insurance adjuster license to an applicant on determining that the application meets the requirements of this chapter... LINK TO STATE LAW
In most states, passing some form of certified training is required by law and is the first step of the licensing process. You can review the Tiger Adjusters® 50 state database on license requirements. The database includes links to every state's legal statute on public adjusting.
After reviewing your chosen state’s public adjusting laws, you will enroll in and complete a 40-hour Property and Casualty pre-licensing course that is approved by the state’s Department of Insurance.
EXAMPLE: EDUCATIONAL REQUIREMENT
Texas law states: "Sec. 4102.057. EXAMINATION REQUIRED. (a) Except as otherwise provided by this chapter, each applicant for a license as a public insurance adjuster must, before the issuance of the license, take and pass an examination to the satisfaction of the commissioner." LINK TO STATE LAW
After you pass the course’s final exam, you will receive a Certificate of Completion. You will need the Certificate of Completion to register for the state’s Public Adjuster exam.
A state’s Public Adjuster exam normally asks a lot of questions about insurance law, plus state law that pertains to how a Public Adjuster conducts business. You can expect questions that center on topics such as:
It is worth noting that you can secure a Public Adjuster license in multiple states, as long as you abide by each state's law. In terms of education, many states offer a reciprocal education exchange. This means that if you pass a Public Adjuster exam in one state, a second state may accept the first's state's exam without you having to go through another course and exam.
When applying for a Public Adjuster license, you will need to provide a government issued identification document. Some states may also require you to prove your citizenship. An examples is the state of Georgia in which you would file the Citizenship Affidavit Form (GID-276-EN) to submit with your government issued identification document.
After passing the state exam and gathering your government issued identification documents, you will apply for a Public Adjuster license. In most states you will apply via either Sircon or the National Insurance Producer Registry (NIPR) platforms. You will need the following documents when applying for a Public Adjuster license.
Insurance is all about relationships, and compliance is no exception. Sircon connects all of the compliance stakeholders together so that everyone knows who is authorized to sell. Sircon helps save money, reduce compliance risk, and accelerate time-to-revenue by getting and keeping agents / advisors authorized to sell.
NIPR provides the insurance industry with a data warehouse of producer licensing information from all fifty states, the District of Columbia, and three U.S. territories. NIPR's products and services eliminate paperwork and data entry, allowing for increased productivity, and faster turnaround time for the producer licensing process.
Most states that require a Public Adjuster to secure a license will also require undergoing a background check and submitting your fingerprints. Different states use different fingerprinting service companies, but in all cases you will need to make an appointment and physically be present to have your prints taken at the collection agency.
Public Adjusters secure a surety bond as part of the licensing requirements in many states. A surety bond is a three-party agreement that ensures one party (the principal: i.e you, the Public Adjuster) fulfills your obligations to another party (the obligee: i.e. your client). If you fail to meet your obligations as a Public Adjuster, a third party, the surety (i.e. the insurance company), steps in to cover the losses or ensure completion.
This bond protects clients from unethical or fraudulent practices by the adjuster. If the adjuster acts improperly—such as misrepresenting claims, mishandling funds, or failing to perform their duties—the bond ensures that the affected client can be compensated.
There are numerous surety bond companies that serve various states. It is merely a matter of filing for a bond and paying for it. Reminder: you need one surety bond per each state you operate in since they cover each state individually.
Filing documentation with the state Department of Insurance is the last step. In most cases, both the Letter of Representation (the contract between a client and the Public Adjuster) and the name of the company a Public Adjuster is working under need to be filed with the Department of Insurance.
Following this last step, a Public Adjuster is legally ready to start serving clients.
States like Texas, Florida, Louisiana, Virginia, and North Dakota passed bills that limit who can negotiate property claim damage on behalf of the policyholder.
Depending on the state, the bill makes the unlicensed practice of public adjusting a felony that can result in a prison sentence of up to two years. Contractors are not trained to negotiate a claim, nor are they licensed public adjusters.
Stay compliant and leverage licensed Tiger Adjusters® to help maximize an insurance claim.
