The Intriguing World Of Insurance Adjusters: A Career Choice To Consider?

Are you looking for a career that offers a stable income, excellent earning potential, and the opportunity to help people get back on their feet after a loss? Then a career as an insurance adjuster may be the perfect fit for you!

Insurance adjusters play a crucial role in the insurance industry by overseeing every aspect of the claims process. They investigate claims, crunch numbers, negotiate settlements, and determine an insurance company's liability. It's a challenging but rewarding job that is always in demand, as claims are made every day.

Becoming an insurance adjuster typically requires completing a few simple steps, including meeting basic requirements, obtaining a high school diploma or equivalent, and in some cases, obtaining a state license. So, if you're interested in a career that offers flexibility, a good salary, and the chance to make a real difference in people's lives, read on to find out more about becoming an insurance adjuster!

You'll need a high school diploma or GED, and some states require a degree

If you're considering a career as an insurance adjuster, you'll need to meet some basic educational requirements. While a high school diploma or GED is the minimum educational threshold, some employers may prefer candidates with a degree in a related field.

In terms of academic qualifications, most claims adjusters possess a college degree. An associate's, bachelor's, or master's degree can enhance your employability as an independent adjuster. Notably, degrees in insurance are particularly appealing to prospective employers.

However, it's worth mentioning that even without a degree, you can still pursue a career as an independent adjuster. Prior work experience that has equipped you with valuable skills and knowledge can be advantageous.

To summarise, while a high school diploma or GED is necessary, pursuing further education or gaining relevant work experience can significantly bolster your prospects of becoming an insurance adjuster.

Decide on your adjuster type: staff, independent, or public

There are three main types of insurance adjusters: staff, independent, and public.

Staff Adjusters

Staff adjusters are full-time, salaried employees of an insurance company. They are sometimes referred to as company adjusters. Staff adjusters can be further divided into desk adjusters and field adjusters. Desk adjusters work in an office and handle claims via computer, using information and images provided by the policyholder. Field adjusters, on the other hand, go out into the field to handle claims, inspecting damage and taking pictures. Staff adjusters usually have a consistent schedule and work in a specific geographic location, although some may travel depending on their role. They are typically W-2 employees, receiving benefits such as health insurance and paid time off.

Independent Adjusters

Independent adjusters are hired on a contract basis and often work for a third-party claims-handling company or an independent adjusting firm. They are contracted when there is an influx of claims, especially during catastrophic events, to help process claims more quickly. Independent adjusters handle claims on behalf of the insurance company and are paid based on the number of claims they handle. They can be 1099 employees, working where the work is or in a designated area, and may be self-employed. They have more flexibility in terms of scheduling and working remotely, but they do not receive the same benefits as staff adjusters.

Public Adjusters

Public adjusters work specifically for the insurance policyholder, not the insurance company. They are hired by the policyholder when they believe they have received an unfair settlement offer. Public adjusters are typically self-employed and are paid through a commission, usually a percentage of the final settlement amount. They have the freedom to make their own schedules but may experience inconsistent income depending on the amount of work they secure. Public adjusters often require additional licensing and education beyond what is necessary for the other adjuster types.

Get licensed, take an exam, and pass a background check

To become an insurance adjuster, you'll typically need to get licensed, take an exam, and pass a background check. The specific requirements vary depending on the state, so it's important to check the relevant state's department of insurance for the most accurate and up-to-date information. Here are the general steps and considerations:

Licensing

First, you'll need to find out if the state you're in requires licensing for insurance adjusters. Most states (34 out of 50) do issue their own licenses for claims adjusters, but there are also 17 jurisdictions that don't. Even if your state doesn't require it, getting licensed can still be beneficial as it demonstrates proficiency in the profession and may open up more career opportunities.

Education Requirements

While a high school diploma or equivalent is the minimum educational requirement, some employers may prefer candidates with a degree in business or a related field. Obtaining a degree, especially in insurance, can set you apart from other applicants. Additionally, prior work experience in a similar field can also be advantageous.

Pre-Licensing Courses

Some states mandate taking a pre-licensing course before you can sit for the licensing exam. These courses can provide valuable insight into the role of an adjuster and the insurance industry as a whole. They are designed to prepare you for the exam and typically include video, audio, text, quizzes, and practice exams.

The Exam

Passing the state licensing exam is a crucial step in becoming a licensed insurance adjuster. The exams are generally not easy, with passing rates ranging from 47% to 60% for first-time test-takers. Therefore, it is highly recommended to take a preparation course to increase your chances of success. The exams usually consist of multiple-choice questions and cover both a national section and a state-specific section. You must achieve a passing score on both parts, typically between 60% and 75%.

Background Check

As part of the licensing process, you will need to undergo a background check. This typically involves providing fingerprints, which will be used to check your criminal history records. If you have any prior misdemeanors or felonies, this may impact your ability to obtain a license.

Application and Fees

After completing the necessary education, passing the exam, and clearing the background check, you can submit your application for an insurance adjuster license. This typically involves providing the required documentation and paying the associated fees, which can include pre-licensing course fees, exam fees, license application fees, and license renewal fees.

Maintenance and Continuing Education

It's important to note that maintaining your license is an ongoing process. You will need to renew your license periodically, usually every two years, and you may be required to complete continuing education credits during this time. Staying compliant with these requirements ensures you can continue your practice as a licensed insurance adjuster.

Maintain your license with continuing education credits

Maintaining your license with continuing education credits is a requirement in many states. The number of continuing education (CE) credits and the frequency with which they need to be obtained vary depending on the state and the type of license. For example, in Washington state, resident individual producers with life, disability, property, casualty, or personal lines insurance licenses must complete 24 credit hours of CE, including 3 hours of ethics credits, before they can renew or reinstate their license. On the other hand, in Texas, the number of CE hours required depends on the license type and certain licenses require specific topics. It is important to stay current with state requirements to avoid penalties.

In New York, certain insurance licenses require 15 CE credits to renew or relicense after the initial 2-year period and for every subsequent renewal or relicensing. These credits must be accumulated during the licensing period, which begins on the effective date of the license. For relicensing, credits from the previous licensing period can be carried over. To satisfy the CE requirement, individuals must take an approved course offered by a New York-approved provider. These courses can cover insurance topics such as life or property insurance or common topics such as ethics and laws and regulations. Courses can be taken in a classroom, via webinar, or through self-directed study, with a final exam required for the latter.

California has similar requirements, with Property Broker-Agent, Casualty Broker-Agent, Personal Lines Broker-Agent, Life-Only, and/or Accident and Health licensees needing to complete 24 hours of CE every two years. It is recommended that licensees complete their CE requirements at least 60 days before the expiration of their license to allow enough time for the provider to submit the necessary information and for the California Department of Insurance to update their records. The California Department of Insurance's website provides information on how many CE hours have been accumulated and can be checked 60 days after the course completion date.

It is important to note that not all courses are approved for CE credits, and individuals should ensure that they are taking courses offered by approved providers. Additionally, some states have specific requirements for the format of the courses, such as Washington state, which requires licensees to review the entire course before viewing or completing the exam.

Develop skills: communication, empathy, time management

Effective communication, empathy, and time management are highly valued skills in the workplace. They are often seen as crucial for leadership roles, but they are important for anyone looking to develop their professional relationships and succeed in their career.

Communication

Communication is a powerful tool that can help you build connections with colleagues, supervisors, and clients. Active listening is a key part of this. This means giving your full attention to the speaker, avoiding interruptions, and summarising what they have said to ensure understanding. Nonviolent communication is also important, which involves moving away from aggressive or defensive tendencies.

Empathy

Empathy is the ability to understand and share the feelings of another person. It is a powerful skill that can enhance your communication and help build trust and faith. To develop empathy, it is important to understand your own biases and emotions, as well as the perspectives and feelings of those around you. This can be achieved by practising active listening, identifying different communication styles, and seeking feedback from colleagues.

Time Management

Time management is not directly addressed in the search results, but some general tips for improving this skill include setting clear goals, creating a schedule or to-do list, prioritising tasks, and eliminating distractions.

Frequently asked questions