Becoming An Insurance Adjuster In Ontario: A Comprehensive Guide

So, you're thinking of becoming an insurance adjuster in Ontario? It's an important role that involves investigating insurance claims and determining the amount of loss or damages covered. To become an insurance adjuster, there are a few steps you need to take. First, you'll need to decide on your specialty—whether you want to be an employee, independent, or public adjuster. This will help guide the next steps in your career path.

Next, you'll need to obtain the minimum level of education, which is typically a high school diploma or GED equivalent. While a bachelor's degree is not always required, it can set you apart from other candidates. To enhance your qualifications, you might consider enrolling in a one-year certificate program or a two-year business insurance program at a college in Ontario. These programs can provide you with valuable technical knowledge, customer service skills, and industry-specific expertise.

Once you have the necessary education, you'll need to pass an insurance licensure examination. In Ontario, this involves a three-step process, including obtaining a Letter of Authority, a Probationary Licence, and finally, a Full Adjuster Licence. To obtain the full licence, you'll need to complete eight courses offered by the Insurance Institute and pass the Canadian Independent Adjusters' Association (CIAA) exam. Maintaining your licence is also important, and can be done through continuing education credits or frequent licence renewal.

With the right combination of education, training, and licensure, you'll be well on your way to becoming a successful insurance adjuster in Ontario. It's a rewarding career that plays a crucial role in the insurance industry, helping to assess and settle insurance claims.

Get a high school diploma or GED equivalent

A high school diploma is an important milestone in your academic journey and can open doors to various career opportunities and higher education. Here are the steps you can take to obtain a high school diploma or its equivalent:

Understanding the Requirements:

To obtain a high school diploma, you need to fulfill certain requirements, which may vary slightly depending on your state and school district. In general, you need to:

• Attend high school full-time for four years.
• Earn credits by taking courses in core subjects such as English, mathematics, science, and social studies.
• Successfully complete exams and achieve passing grades.
• Fulfill any additional graduation requirements specified by your school or state.

Enrolling in a High School Program:

If you are not currently enrolled in high school, you can take the following steps to enroll and work towards your diploma:

• Research accredited high schools in your area, including traditional brick-and-mortar schools or online options.
• Contact the schools you are interested in and inquire about their enrollment process, requirements, and any necessary documentation.
• Complete the enrollment process, which may include submitting an application, providing transcripts (if transferring credits), and meeting with a counselor to develop a graduation plan.

Completing the Program:

Once you are enrolled in a high school program, here are some tips to help you successfully complete the requirements and earn your diploma:

• Maintain regular attendance in your classes to fulfill the required number of instructional hours.
• Stay on top of your coursework and assignments to demonstrate proficiency in the subject matter.
• Take advantage of support services, such as tutoring or study groups, if you need additional help in any subject area.
• Communicate with your teachers and counselors if you have questions or concerns about your progress.
• Fulfill any extracurricular or community service requirements that may be part of your graduation requirements.

Exploring Alternative Paths:

If returning to a traditional high school setting is not feasible for you, there are alternative paths to earning a high school equivalency credential, such as:

• General Educational Development (GED) Test: The GED is a group of four academic subject tests that certify your knowledge is equivalent to a high school diploma. It is suitable for individuals who have not completed high school or met the requirements for a diploma. The GED is accepted by most colleges and employers as proof of academic proficiency.
• HiSET (High School Equivalency Test): The HiSET is an alternative exam that provides a state-issued high school equivalency credential. It covers five subjects: reading, writing, mathematics, science, and social studies. This option may be preferable if you are not comfortable with computer-based tests, as it is available in both paper and computer formats.
• TASC (Test Assessing Secondary Completion): The TASC is another high school equivalency exam accepted in several states. It covers the same five core subjects as the HiSET and is also available in paper and computer formats.

Remember to research the specific requirements and guidelines for your state, as eligibility and processes may vary. Obtaining your high school diploma or its equivalent is a significant step that can create a pathway to future educational and career opportunities.

Choose your insurance adjuster specialty

There are several types of insurance adjuster specialties to choose from. The most common types are:

• Staff adjuster: Staff adjusters are year-round employees, typically full-time, working for a single insurance company. They are paid a salary and benefits by the insurance company and usually work in the company's claims department. Staff adjusters represent the insurance company and deal with claimants directly.
• Independent adjuster: Independent adjusters are contractors who work for one or more insurance companies or independent adjusting firms. They are typically paid on a per-claim, hourly, or daily basis. Independent adjusters may represent either the insurance company or the claimant, depending on the claim. They are often hired on a freelance basis to handle claims when an insurance company has no nearby office or adjuster available, or when there are too many claims to handle (e.g. after a natural disaster).
• Public adjuster: Public adjusters are hired by the claimant or policyholder, not the insurance company. They help claimants get the highest possible settlement from the insurer, usually taking a percentage of the claim amount as a commission. Public adjusters are useful when individuals or businesses feel that their insurance settlement is unfair or insufficient.

Other types of adjuster roles include:

• Catastrophe adjuster: Catastrophe adjusters can be either staff or independent. They travel to areas affected by natural disasters or other catastrophic events, where there is a high volume of claims.
• Inside or desk adjuster: Inside or desk adjusters handle claims from an office or call center. They may have field adjusters perform inspections and use the results to estimate and settle the claim.
• Field adjuster: Field adjusters inspect houses, vehicles, and properties to determine damages. They may climb on roofs, visit tow yards, or inspect slip and fall incidents.

To become an insurance adjuster in Ontario, you must:

• Be 18 years of age or older.
• Be legally entitled to work in Canada.
• Complete an Insurance Adjuster application and pay the required fee (currently $75).
• Be familiar with the laws of Ontario relating to the licensing of adjusters.
• Be sponsored by an adjusting firm.
• Complete the required courses offered by the Insurance Institute.
• Pass the Canadian Independent Adjuster's Association (CIAA) exam with a mark of 70% or higher.

Apply for a licence with the Financial Services Regulatory Authority of Ontario

To apply for a licence with the Financial Services Regulatory Authority of Ontario (FSRA), you must first select the type of licence you require. FSRA offers licences for various roles in the financial services sector, including insurance agents, adjusters, brokers, and service providers.

Step 1: Determine the Licence Type

Before starting your application, you must identify the specific type of licence that aligns with your role in the financial services industry. FSRA offers different licences for insurance agents, adjusters, brokers, and service providers. Each licence has unique requirements and qualifications that must be met.

Step 2: Meet the Eligibility Criteria

FSRA has outlined specific eligibility criteria for each type of licence. For instance, insurance agents selling life and accident and sickness insurance must complete the Life Licence Qualification Program (LLQP) and pass the associated exam. On the other hand, insurance adjusters must be sponsored by an adjusting firm and complete specific educational requirements.

Step 3: Complete the Application Process

The application process can be initiated by downloading the relevant application form from the FSRA website. For some licences, such as insurance agents and adjusters, you may be required to create an account on the Licensing Link Portal to complete the application process. This portal allows you to track your application status and manage your licence once it is approved.

Step 4: Provide Supporting Documents

Along with your completed application form, you will need to submit supporting documents as specified by FSRA. These documents may include proof of identity, proof of mailing address, educational certificates, and other relevant information. A criminal record check may also be required for certain licences.

Step 5: Pay the Application Fee

FSRA charges a fee for processing licence applications. The fee varies depending on the type of licence being applied for. For instance, the fee for a new adjuster licence is $75, while the fee for a new life and accident and sickness insurance licence is $170.

Step 6: Await Application Review and Approval

After submitting your application, FSRA will review it and determine your eligibility for the licence. The review process typically takes around 10 business days. If your application is approved, you will be able to view and print your licence from the Licensing Link Portal.

It is important to note that additional steps may be required for specific licences, such as completing educational courses or passing examinations. Therefore, it is essential to review the specific requirements for your chosen licence type on the FSRA website.

Pass the insurance licensure exam

To become an insurance adjuster in Ontario, you must pass the Canadian Independent Adjuster's Association (CIAA) exam. Here are some tips to help you pass the insurance licensure exam:

• Know the material: This may seem obvious, but it's important to thoroughly understand the concepts and terminology covered in the exam. Make sure you cover all the relevant topics and don't leave any stone unturned in your preparation.
• Practice, Practice, Practice: Take as many practice tests as possible. This will help you familiarise yourself with the exam format and identify areas that need further study. The more you practice, the more comfortable and confident you'll feel on exam day.
• Understand the exam format: The CIAA exam is a computer-based test with multiple-choice questions. There is no essay section, and the questions are randomly scrambled rather than grouped by category. Knowing what to expect will help you feel more prepared and reduce exam-day jitters.
• Give yourself enough time to study: Don't cram the night before the exam. Space out your study sessions and allow ample time to master the material. It's recommended to study for at least one week for each exam you need to take.
• Take a pre-license education course: Enrol in a reputable insurance education course that covers the material tested in your province. These courses can provide valuable instruction and resources to enhance your preparation.
• Stay organised: Create a dedicated study space that is free from distractions. Organise your notes and study materials to make the most efficient use of your time. A tidy workspace can improve your focus and help you locate relevant information quickly.
• Use diagrams and flow charts: Visual aids can be extremely helpful for complex topics. Create diagrams or flow charts to summarise key concepts and make connections between different ideas.
• Explain your answers to others: Teaching a concept to someone else is a great way to reinforce your own understanding. Find a willing listener and explain the topics you're studying. If you can explain it simply, you've truly mastered the material.
• Take care of your physical and mental well-being: Don't neglect your health during exam preparation. Get regular exercise, eat nutritious foods, and stay hydrated. Take breaks during your study sessions and get plenty of sleep. A well-rested mind will absorb and retain information more effectively.

Maintain your licence with continuing education

To maintain your licence as an insurance adjuster in Ontario, you must renew it every year before June 30. The Financial Services Regulatory Authority of Ontario (FSRA) will send a courtesy email reminder 60 days before the expiration date, but it is your responsibility to keep track of your licence's status. The renewal fee is $75, which may be paid by your adjusting firm, depending on your arrangement with them.

Before submitting your renewal application, you must reconfirm your suitability to hold an adjuster licence. This includes meeting the following requirements:

• Be sponsored by an adjusting firm.
• Be legally entitled to work in Canada.
• Be 18 years of age or older.
• Confirm you are not licensed as an insurance agent or broker.
• Be familiar with the laws of Ontario relating to adjusters.
• Share any new information about bankruptcies, lawsuits, criminal records, decisions from other regulators or licensing bodies, and other employment information.

In addition to renewing your licence, you must also complete an education program to maintain your licence as an insurance adjuster in Ontario. The program includes eight courses from the Insurance Institute and an exam from the Canadian Independent Adjusters' Association (CIAA). The courses cover various topics such as principles and practices of insurance, insurance on property, automobile insurance, and loss adjusting.

It is important to stay current with your continuing education requirements to maintain your licence and provide the best service to your clients.

Frequently asked questions