The Path To Becoming A Public Insurance Adjuster: A Comprehensive Guide

To become a public insurance adjuster, you'll need three things: a high school diploma, industry knowledge, and a state public adjuster license. While these are the minimum requirements for becoming a licensed public adjuster, you may need additional qualifications to get hired by a client or adjusting firm. A college degree, work experience in the insurance industry, and certifications can strengthen your resume and increase your chances of getting hired. Many states also require public adjusters to hold a surety bond, which ensures compliance with state laws and regulations.

Get a high school diploma or GED

To become a public insurance adjuster, you'll need to complete your general education. This means earning a high school diploma or equivalent (such as a GED). While this is the minimum requirement, you may want to consider getting a college degree to make your application stand out. A college degree will also help build confidence and trust with potential clients, which will lead to more contracts and a higher salary.

If you don't have a high school diploma, you should consider enrolling in GED courses and passing the GED exam. This will ensure that you meet the minimum educational requirements to become a public insurance adjuster.

In addition to your general education, you'll also need to acquire industry knowledge and a state public adjuster license. You can gain industry knowledge by getting a job in insurance, starting as a claims adjuster, or enrolling in a training course. The licensing requirements vary from state to state, so be sure to research the specific requirements for your state.

By completing your general education and acquiring the necessary industry knowledge and licensing, you'll be well on your way to becoming a successful public insurance adjuster.

Gain industry knowledge and work experience

The next step for all aspiring public adjusters is to gain industry knowledge and work experience. In states that require a public adjuster's license, such as Pennsylvania, you'll need to study all the terms and concepts necessary to pass the state licensing exam. Even if your state doesn't require a license, this knowledge will be essential for getting hired and performing your job effectively. Understanding insurance basics will be crucial, including general insurance knowledge, the different parts of an insurance policy, specific types of insurance claims, important insurance terms and concepts, and key laws and regulations like the National Flood Insurance Program.

There are several ways to gain this industry knowledge. One option is to get an entry-level job in insurance, such as sales, admin, or customer service at an insurance agency. These roles can provide valuable experience and insight into the industry while you prepare for a career in public adjusting. Another option is to start as a claims adjuster, working for an insurance agency. Claims adjusters handle claims of all sizes, so it's a great opportunity to learn on the job under the guidance of more experienced adjusters.

In addition to gaining knowledge about the insurance industry, it's also important to develop critical thinking, communication, and financial accounting skills. Public adjusters must be skilled observers, capable of analyzing damages and drawing financial conclusions. Therefore, strengthening your math and analysis skills, as well as oral and written communication abilities, will be beneficial.

Consider enrolling in a training course specifically designed for aspiring public adjusters. These courses are available online and can provide valuable exam preparation if your state requires licensing. Look for a course that caters its material to the specific requirements of your state's exam.

Keep in mind that public adjusting is a challenging career that requires hard work, skill, and determination. However, with the right knowledge, experience, and skills, you'll be well on your way to becoming a successful public adjuster.

Apply for a state public adjuster license

The requirements for a state public adjuster license vary depending on the state. Here is a step-by-step guide on how to obtain a license in several states:

Florida

• Meet the state's requirements: You must be at least 18 years old, a US citizen or legal alien with proof of work authorization, and maintain a principal place of business in Florida. If you are a Florida resident, you must be licensed and appointed as a public adjuster or apprentice for at least six months. Non-residents must be licensed and appointed in their state of residence for six months.
• Purchase and file a surety bond: Buy a $50,000 Florida public adjuster bond and file it with the Florida Department of Financial Services.
• Apply for your license: Submit your application online through the Florida Department of Financial Services Bureau of Licensing portal. Pay the necessary application fees. Military members, veterans, and their spouses may qualify for an application fee exemption.
• Submit your fingerprints: You can submit your fingerprints electronically or by mail.
• Pass the Florida public adjuster exam: Once your application is approved, you will be able to schedule your exam.
• Maintain your license: You must complete 24 hours of continuing education biennially.

New York

• Prelicensing requirements: Complete a Department-approved prelicensing education course totaling at least 40 hours of instruction. Alternatively, you can waive this requirement if you have been employed in the insurance industry for at least one year in specific roles.
• Pass the licensing exam: All adjuster applicants must pass the appropriate licensing exam within two years of applying for the license.
• Submit fingerprints: New York resident applicants must be electronically fingerprinted through IdentoGo, while non-residents must mail their fingerprints to the Department.
• Submit a bond: Public adjuster candidates must submit a $1,000 bond for the licensing period.
• Submit Certificates of Character: Provide five certificates from members of your community, certifying that you are honest, competent, and of good character.
• Upload documents and pay fees: Upload the required documents with your online application and pay the non-refundable fee of $50 for a one-year license or $100 for a two-year license.

Pennsylvania

• Complete a pre-licensing education course: Enroll in an online course to prepare for the state licensing exam.
• Pass the Pennsylvania Public Adjuster Examination: The exam is 60 minutes long and consists of 60 scorable questions. The exam fee is $43.
• Complete a background check: Get your fingerprints taken through IdentoGo.
• File your license: Submit your license application online via Sircon or NIPR. The initial licensing application fee is $200. Submit a surety bond of at least $20,000 with your application.

Texas

• Pass the licensing exam: You must pass the exam before applying for your license.
• Complete your fingerprints: Get your fingerprints taken through IdentoGo and submit them within one year of passing the exam.
• Apply for your license: Submit your application online using Sircon. The application fee is $50.

Washington

• Meet the experience and education requirements.
• Schedule and pass your exam: Visit www.psiexams.com to schedule your exam.
• Apply for your license: Submit your application online at fortress.wa.gov.
• Submit your fingerprints: Note that fingerprints are not accepted before receiving an application.
• Provide required documentation: Have your proof of experience, exam score report, and bond information ready to attach electronically or mail in. A $5,000 Public Adjuster's bond is required for both corporate and non-affiliated individuals.

Purchase a surety bond

To become a public insurance adjuster, you will need to purchase a surety bond. This is a requirement in many states, including Texas, California, New York, and Florida. The bond amount varies from state to state and is set individually by each state. For example, in Texas, the bond amount is $10,000, while in California, it is $20,000. In New York, the bond amount is $1,000, and in Florida, it is $50,000. You can purchase your bond from a surety company or a specialised surety bond provider.

The cost of your surety bond premium will depend on your financial health and credit score. If you have good credit and strong finances, your premium will typically range from 1% to 3% of the full bond amount. For example, in California, a $20,000 bond will cost you an annual premium of $100 if you have good credit. However, if you have bad credit, your premium may be higher, ranging from 4% to 7.5% of the full bond amount.

When purchasing a surety bond, you will need to provide certain information to the surety company, such as your personal credit score, business financial health, and other factors. The surety company will use this information to determine your premium and whether you qualify for a lower rate.

It is important to note that the surety bond is just one part of the licensing process for becoming a public insurance adjuster. You will also need to meet other requirements, such as passing a license examination and completing a fingerprint background check. Be sure to check with your local authorities to understand the exact requirements for obtaining your license.

By purchasing a surety bond, you are guaranteeing to your clients that you will conduct business honestly and in compliance with the law. The surety bond serves as a safety net for your clients, ensuring that they will be protected if you fail to fulfil your legal obligations. It is a powerful sign that you are a safe and reputable business to work with.

Maintain your license

Maintaining Your License as a Public Adjuster

Public adjuster licenses are valid for two years from the date of issue, so public adjusters must submit for renewal regularly to maintain their licenses. Renewal requirements and fees vary by state, but all states require public adjusters to complete 24 hours of continuing education during each two-year period. Eligible courses must be approved by the state commissioner, and at least part of the adjuster's education hours must cover topics related to business ethics.

Some states, such as Texas, require public adjusters to complete 24 hours of continuing education every two years, with 3 hours dedicated to ethics and 12 to "classroom" or "classroom equivalent" courses. If you don't complete the required hours, you may have to pay a fine. For example, in Texas, you must pay a $50 fee for each hour you are missing, up to a maximum fine of $500.

In addition to continuing education, public adjusters in some states may need to renew their fingerprints periodically. For example, in Texas, you must submit new fingerprints if your license has been expired for more than 90 days but less than a year. If your license has been expired for more than a year, you must retake the licensing exam.

Public adjusters are also required to maintain a surety bond to keep their licenses in good standing. The amount of the bond varies by state, with Texas requiring a $10,000 bond and New York requiring a $1,000 bond. The purpose of the surety bond is to ensure that the public adjuster complies with state laws and regulations and to protect clients from any financial losses due to the adjuster's actions.

Finally, public adjusters should be aware of any changes in licensing requirements and ensure that they remain eligible to hold a license. For example, federal law prohibits anyone convicted of certain felonies from conducting insurance business without the written consent of the insurance commissioner.

Frequently asked questions