Are Executives Exempt From Claim Adjuster License Laws?

The requirements for obtaining a claims adjuster license vary by state. In California, for example, individuals must meet the basic licensing requirements, which include being at least 18 years old and having two years of certified experience in the insurance adjusting field, before registering for and passing the state exam. On the other hand, New York State exempts insurance company employees from obtaining an adjuster's license if they are adjusting claims for their authorized insurer employer, unless they are acting as auto body repair estimators. Texas also has specific requirements for obtaining an adjuster license, including passing a state licensing exam and completing a fingerprint background check. Understanding the specific laws and regulations of each state is crucial for executives seeking to obtain a claims adjuster license.

Licensing requirements for company/staff adjusters

Company or staff adjusters are salaried employees of a specific insurance company and are responsible for investigating, evaluating, and settling claims for that insurer only.

In the United States, the requirements to become a company/staff adjuster vary by state. For example, in California, company/staff adjusters must meet the following requirements:

• Be at least 18 years old
• Have two years of certified experience in the insurance adjusting field, equal to 4,000 compensated hours
• Register for and pass the California State Exam
• Submit an adjuster application using Sircon or Form LIC 041-A
• Obtain and submit a $2,000 Bond of Insurance Adjuster using form CDI Form 31A-14
• Process and submit fingerprints according to the instructions on the California Department of Insurance (CDI) Fingerprinting Requirements page
• Submit a 2x2 passport photo
• If conducting business from any location in California other than the principal place of business, obtain a Branch Office Certificate by submitting an Application for a Branch Office Certificate (form LIC 31A-13) and paying the associated fee

In Texas, the requirements for a resident adjuster license include:

• Passing the state licensing exam
• Completing fingerprints through TDI's online initial application and fingerprint portal
• Submitting an application online using Sircon within one year of passing the exam
• Paying an application fee of $50

In New York, insurance company employees who adjust claims for their authorized insurer employer are exempt from obtaining an adjuster's license, unless they are acting as auto body repair estimators.

Licensing requirements for independent adjusters

An insurance adjuster, or claims adjuster, is a person who, for any consideration, investigates and evaluates claims to determine how much money an insurance company should pay for a loss. They do this by interviewing witnesses, medical professionals, the police, and the claimant.

There are 34 states that require independent adjuster licensing. In these states, independent adjusters must be licensed in their home state before obtaining a nonresident license to do business in another state. Independent adjuster licenses are typically issued as All Lines, General Lines, or Property and Casualty.

Some states require either prelicensing education or work experience to obtain a license. For example, in California, individuals must have two years of certified experience in the insurance adjusting field, which equates to 4,000 hours of compensated time in the field.

In addition to obtaining a license, most states require continuing education to maintain the license. While the number of required hours varies, most states require 24 hours biennially, including ethics.

To become licensed as an independent adjuster, individuals must pass a state licensing exam. This exam will test the candidate's knowledge of relevant topics, including homeowners and dwelling coverage, personal auto, personal umbrella, commercial property, commercial general liability, business owners' coverage, commercial auto, crime, surety, workers' compensation, farm insurance, and commercial umbrella coverage.

In New York, insurance company employees who adjust claims for their authorized insurer employer are exempt from the requirement to obtain an adjuster's license, unless they are acting as auto body repair estimators. However, this exemption does not apply to any officer, director, or regular salaried employee of an authorized insurer, or any manager thereof, unless they are also acting as an auto body repair estimator.

In California, the person in charge of the business (owner, partner, officer, or employed manager) must meet certain requirements, including being at least 18 years old and passing the California Insurance Adjuster license examination.

Licensing requirements for public adjusters

The requirements for a public adjuster license vary by state, as the insurance industry is regulated at the state level. Some states have strict rules governing how public adjusters operate, while others have surprisingly lax requirements. Some states do not allow public insurance adjusters at all.

In New York, for example, a public adjuster is defined as any person, firm, association, or corporation that acts on behalf of an insured person in negotiating the settlement of a claim or claims for loss or damage to property of the insured. To qualify for a license, a public adjuster candidate must complete a Department-approved prelicensing education course totaling no less than 40 hours of instruction. They must also pass the appropriate licensing exam within two years of applying for the license, submit fingerprints, and upload various documents with their online application, including a $1000 bond.

In California, a public adjuster must be at least 18 years old and must pass a licensing examination administered by the Department of Insurance. They must also submit fingerprint impressions, a 2 x 2 passport photo, and additional documents.

Other states that require a public adjuster license include Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wyoming.

Prelicensing requirements

The prelicensing requirements to become a claims adjuster vary across different states in the US. Here is a breakdown of the requirements for some states:

• New York: To qualify for a license, a public adjuster candidate must complete a Department-approved prelicensing education course totalling at at least 40 hours of instruction. However, no prelicensing course is required for independent adjuster candidates. All adjuster applicants must pass the appropriate licensing exam within two years of applying for the license. A candidate for a public adjuster license may waive the education requirement if they were regularly employed in the insurance industry for at least one year in duties involving sales, underwriting, or claims. All adjuster applicants must submit fingerprints, and public adjuster candidates must submit a $1000 bond.
• California: In California, individuals must have two years of certified experience in the insurance adjusting field, totalling 4,000 hours of compensated time in the adjusting field. They must also pass the California Insurance Adjuster license examination.
• Texas: In Texas, applicants must meet basic requirements, including being at least 18 years old, having a valid driver's license, passing a criminal background check, and having a good driving record. They must then complete 40 hours of pre-licensing education before taking the Texas All-Lines Adjuster Exam. This exam covers topics such as insurance policies, laws, regulations, and ethics.
• Florida: In Florida, applicants must complete one of the state-approved pre-licensing education courses or pass the state exam. The accepted courses include Accredited Claims Adjuster, Certified Claims Adjuster, Certified Adjuster, and Chartered Property Casualty Underwriter designations, among others.

Application requirements

The requirements to become a licensed insurance adjuster vary by state. Some states do not offer a specific insurance adjuster license, but individuals in these states can still work as insurance adjusters without a license. In states that do offer an insurance adjuster license, individuals must complete the steps to apply for a resident license.

The following steps are required in many states, but specific requirements differ depending on location.

Step 1: Complete an Insurance Adjuster Training Course

Many states require insurance adjusters to have an educational background in insurance adjusting as a prerequisite to applying for a license. These education requirements can be met in several ways, including completing a state-approved pre-licensing education course or passing a state exam.

Step 2: Pass the Insurance Adjuster License Exam

If you do not have a certification or background in insurance, you can still pursue a license by demonstrating knowledge on a state insurance adjuster license exam. A pre-license education course is the best way to prepare for this exam.

Step 3: Complete Your Insurance Adjuster License Application

Your state will require personal and background information to process your insurance adjuster license application. You can apply for your license through your state's Department of Division of Insurance, usually via an online secure portal.

Application fees range from $20 to over $200. Multiple fees are typically required to become fully licensed as an insurance adjuster. These may include:

• Application fee: around $50
• License identification: around $5
• State exam: around $45
• State appointment: around $60

Some states, such as Texas, offer an emergency insurance adjuster license during disasters. If applying for this type of license, you must be sponsored by a licensed insurance adjuster or company in that state. Emergency insurance adjuster licenses are only valid for 90 days.

Many states also require fingerprints as part of the application process, which the applicant must pay for. Fingerprinting fees are typically around $50 and are completed through a third party.

Step 4: Apply for State Reciprocity

While not mandatory to be licensed as an insurance adjuster, having state reciprocity can increase your ability to process claims in neighboring states or areas during a disaster. If you plan to work as a catastrophe insurance claims adjuster, you will likely need a license in multiple states.

Many states offer reciprocity with other states, recognizing that insurance adjusters may need to handle claims in multiple locations. Reciprocity allows adjusters licensed in one state to pursue licensure in another without completing new requirements such as training or continuing education.

Step 5: Additional State-Specific Requirements

In addition to the general steps outlined above, some states have unique requirements for obtaining an insurance adjuster license. For example, in California, applicants must be at least 18 years old and have two years of certified experience in the insurance adjusting field, equal to 4,000 compensated hours.

It is important to review the specific requirements for your state to ensure you meet all necessary qualifications and complete the correct application process.

Frequently asked questions