Public adjusters work to adjust claims for insurance policy holders instead of insurance companies. Companies can protect themselves due to their expertise in the insurance industry. Therefore, many states do not even require a license to work as an insurance adjuster for an insurance company. However, working for the public presents a different situation. Insured individuals are at a disadvantage when dealing with insurance companies over insurance claims. Therefore, members of the public often seek out an adjuster to protect their insurance-policy interests.
State governments typically license public adjusters so that the public can receive adequate representation when filing an insurance claim. The following are typical requirements, but note that you should always contact your state insurance department for state-specific rules for public adjusters and the state licensing requirements:
Typically, a state will require a criminal background check. The job of adjusting can easily involve bribes and other activity. States usually want only individuals with good moral character to represent the public as claims adjusters. A background check (with fingerprints) at least shows a record of the license applicant’s past criminal history. A state may deny a public adjuster license for certain criminal offenses, particularly fraudulent activity.
2. Public Adjuster Education
Many states do not require a specific education for public adjusters. However, it is a wise idea to get some training by taking a public adjuster’s course or similar claims adjuster course related to state licensing. Insurance-Schools.com has claims adjuster courses for different states. One good thing about some of these courses is that they will give you an exam exemption. States like Texas allow adjuster applicants to take a course in lieu of a public adjuster’s exam. Check out Insurance-Schools courses, but also check with your state insurance department to see if it has any other approved courses for claims adjusters.
3. Public Adjuster Exam
Most states use the testing process to grant public adjuster licenses. Each state has its own public insurance adjuster’s exam if it requires an exam. Many states use Prometric or a similar testing company to administer adjuster exams. Companies like Prometric usually provide a detailed candidate handbook or bulletin plus exam content outline. Make full use of these resources when preparing for your public adjuster license exam.
These exams also typically have state-specific insurance law. Of course, it is to your advantage to take a state-specific public insurance adjuster’s course to prepare for your exam. But you should also check with your state insurance department to determine how to access state insurance law. Each state usually has an Insurance Code that you need to learn to pass your exam. The exam content outlines will generally tell you which statutes you must study for the exam.
4. Adjuster’s Bond
Fraud and gross negligence are potential problems in the business of insurance adjusting. To protect the public, many states require a surety bond for work as a public adjuster. As always, check with your own state for this requirement and related bond forms. If you need a bond, local surety bond agents can set you up with a bond for this purpose. The bond for public adjusters is usually fairly small compared to many other types of bonds. For example, Texas requires a $10,000 bond. You generally must pay only a small percentage of that to the bonding company to get a bond.
5. License Application
Assuming all other requirements are met, you then submit a public adjuster license application to your state insurance department. Fees are typically $100 to $200, but they vary from state to state. Many states have set up online licensing applications through Sircon.com or similar websites. Check with your own state for the specific application procedure.
Sources:
Public Adjuster Courses By State
