Best Insurance Licenses For Aspiring Auto Adjusters

If you're considering a career as an insurance adjuster, you'll need to obtain a license. The requirements for this vary depending on the state, with some states having their own programs, some coordinating with other states, and some not requiring a license at all. It's important to choose the right type of license, as this will determine where you can work and how much you can earn. For example, getting licensed in a state that doesn't require a license may limit your career opportunities. On the other hand, obtaining a license from a state with a high number of reciprocal agreements can make it easier to get licensed in other states.

Company (staff) adjuster

A company (staff) adjuster is a salaried employee of a specific insurance company and investigates, evaluates, and settles claims for that insurer only. They are not licensed but are registered by the insurance company for whom they work. This registration is valid for one year unless the insurance company terminates it.

Staff adjusters are required to take their home state exam, which is the same exam that independent adjusters take. In some states, they must take the exam for the specific line of insurance for which they are adjusting, such as automobile, workers' compensation, crop, hail, property, casualty, accident and health, aviation, etc.

If you are an individual looking to start a career in insurance claims adjusting, it is recommended that you obtain your independent adjuster license first. If you choose to become a staff adjuster later, you can apply for a license change with the assistance of your employer.

It is important to note that the definition of 'staff adjuster' can vary between states, so it is advisable to check the specific requirements of the state in which you intend to work. Obtaining a staff adjuster license is typically only necessary if you have been instructed to do so by your employer.

To become a company (staff) adjuster, you will need to meet the basic requirements, which include being at least 18 years old, possessing a valid driver's license, owning a personal vehicle, and having proficient reading and writing skills in English. In addition, you will need to meet the education requirements, which typically include a high school diploma or equivalent, although some employers may prefer candidates with a degree in business or a related field.

The next step is to obtain the necessary licensing for the state in which you intend to work. This may involve taking a preparatory class or pre-licensing course to prepare for the state's licensing exam. It is also worth considering obtaining reciprocal licenses for other states if you plan to work as an independent adjuster across multiple states.

Once you have obtained the necessary licensing, you can start gaining experience by working for an insurance company or an independent adjusting firm, either as a trainee or intern, or by applying for entry-level positions such as "claims specialist" or adjuster. This will help you familiarize yourself with the sector and establish meaningful connections.

With the required licenses, relevant experience, and a strong understanding of the insurance industry, you can then apply for roles as a company (staff) adjuster.

Independent adjuster

An independent insurance adjuster is not directly employed by an insurance company but is hired by an insurer when a claim is made. They are considered independent because they might be employed by a third party that specialises in homeowners or other types of insurance claims.

To become an independent insurance adjuster, you must:

• Meet the basic requirements: In the U.S., this includes being at least 18 years old, possessing a valid driver's license, owning a personal vehicle, having proficient reading and writing skills in English, and having the capability to navigate and perform tasks in diverse settings.
• Meet the education requirements: While a high school diploma or equivalent is a minimum requirement, some employers may prefer candidates with a degree in business or a related field. Most claims adjusters possess a college degree, and a degree in insurance is particularly appealing to prospective employers.
• Obtain state licensing: Take a preparatory class to equip yourself with the knowledge to pass the state's insurance adjuster licensing test. You might also need reciprocal licenses for other states where you plan to work.
• Complete pre-licensing courses: Some states require you to take a pre-licensing course before sitting for the exam.
• Gain experience: Start with an insurance company or an independent adjusting firm to gain experience. This can be in the form of a trainee position or internship. Apply for an entry-level role as a claims specialist or adjuster, either as an in-office desk adjuster or a field adjuster.
• Apply for an independent adjuster license: After gaining experience and meeting your state's requirements, you can apply for your independent adjuster license. Submit your application and fee payment, and wait for your license to be issued.

The entire process of becoming an independent insurance adjuster can range from a few months to several years, depending on your educational background and work experience.

Public adjuster

A public adjuster is an independent contractor or insurance professional who represents the interests of the policyholder or insured person. Unlike a company or staff adjuster, who works for a specific insurance company, or an independent adjuster, who works for an adjuster firm, a public adjuster is hired by and works for the policyholder. They are paid by the policyholder, usually as a percentage of the total claim payout, to ensure that their claim is settled fairly and efficiently.

If you are considering hiring a public adjuster, it is important to check their references, qualifications, and licensing status, as well as ask for recommendations from family and friends. You should also be aware of the potential cost, as their fees can range from 3% to 30% of the total claim payout, or a flat or hourly rate. In some cases, you may still have to pay the public adjuster even if your insurance company does not increase its offer.

State licensing requirements

Step 1: Check your state's requirements

Firstly, check your state's requirements for licensing. Some states have their own licensing process, and some don't require a license at all. If your state doesn't require a license, you can skip straight to work. However, if you want to work in another state, you will need to obtain a license.

Step 2: Complete an insurance adjuster training course

Many states require insurance adjusters to have completed an approved training course before applying for a license. These courses can be taken online or in person and typically cover insurance industry terminology, policy specifics, and the circumstances of a claim.

Step 3: Pass the insurance adjuster license exam

If you don't have a background in insurance, you will need to pass a state licensing exam. This exam will test your knowledge of insurance concepts, contracts, laws, and adjusting practices. Most states provide an exam content outline to help applicants prepare.

Step 4: Complete your license application

You will need to submit an application to your state's Department of Division of Insurance, usually via an online portal. The application will require personal and background information, and you may also need to provide fingerprints. Application fees vary but can range from $20 to over $200.

Step 5: Apply for state reciprocity (optional)

If you plan to work in multiple states, you can apply for state reciprocity. This means that your license will be recognised in other states, and you won't need to complete new requirements such as additional training. However, you will still need to submit the necessary documents and payments.

Step 6: Complete continuing education (if required by your state)

Some states require insurance adjusters to complete continuing education to maintain their licenses. This typically involves a certain number of hours of education biennially, including ethics.

Continuing education

Adjuster continuing education (CE) requirements vary by state. In most states, adjusters are mandated to complete a certain number of CE hours to renew their licenses. These requirements may include completing a specified number of hours of CE courses or attending seminars or conferences related to the insurance industry.

The number of required CE hours varies across states, with most states mandating 24 hours biennially, including ethics. Some states, such as Connecticut, Florida, and Oregon, have unique requirements, such as a specified number of hours dedicated to state-specific insurance law and ethics.

To fulfil CE requirements, adjusters can take courses through approved providers. These courses cover a range of topics, including insurance law, ethics, claims handling, and industry trends. Some courses are offered online, while others are conducted in-person. It is important for adjusters to stay current with their CE requirements to maintain their licenses and provide the best service to their clients.

Failure to complete the required CE hours in a timely manner could result in penalties or even suspension of an adjuster's license. Therefore, it is essential for adjusters to regularly check with their state's Insurance Department or similar agency to stay informed about the latest CE requirements and ensure legal compliance.

Frequently asked questions