Yes, if your firm is adjusting claims, not only do your adjusters need licenses, but your firm needs to hold adjuster licenses also. Currently 22 states require adjusting firms to be licensed. If your firm is adjusting claims in a non-resident state, an adjuster license may also be needed.
To start, review the states where your firm is adjusting claims and check with the state insurance department to see if an adjuster license is needed for the firm. If you determine a firm license is required, applying for the adjuster license can be complicated.
Let’s look at one state’s requirements for adjuster firm licensing – California. California requires independent adjuster firms (known in California as organization) to be licensed. Prior to applying for an adjuster license the firm must have been issued a Certificate of Authority (COA) with the California Secretary of State’s office.
Once the COA has been issued, the firm must complete an application and pay the $267 licensing fee. Before this application can be submitted to the Deptartment of Insurance, an individual known as the firm’s Qualified Manager, must have successfully passed the California adjuster examination and have been fingerprinted. If this requirement is in place, the firm application along with a personal identification form for the Qualified Manager, including a list all persons authorized to negotiate claim settlements in the state of California, may be submitted. Personal identification forms must also be submitted in behalf of all officers, directors and stockholders of the firm. In addition, a photo ID must be attached to each personal identification form. California also requires a bond be submitted with the adjuster license application. If any officer, member, controlling person, partner, director or shareholder has been the subject of a disciplinary action or convicted of a crime, documentation must be submitted with this application.
Keep in mind not all adjuster licenses for firms are as complicated as in California. However, some states require bonds and many require COAs to be in place when submitting the firm license application.
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The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney for questions regarding the legal ramifications of this information.