Effective July 1, 2010, North Carolina adopted the NAIC Public Adjuster Licensing Model Act. Notifications were to North Carolina public adjusters over the past several months. The following are some key provisions of this new law:
Business Entities:
Business entities acting as a public adjuster in North Carolina are required to obtain a license as a public adjuster. Resident business entities acting as a public adjuster are also required to submit electronic fingerprints for each “key person” for a state and federal criminal history background check.
Fingerprint submission instructions and required forms are located on the Department’s website www.ncdoi.com under applications and forms for insurance licensing at the following location: http://www.ncdoi.com.
Public adjuster business entities should submit an electronic application for licensure using the NAIC Uniform Business Entity Application through www.nipr.com.
Fingerprints – Resident Applicants:
A resident applicant for a public adjuster license is required to furnish the Commissioner with a complete set of the applicant’s fingerprints for a state and federal criminal history background check. A public adjuster applicant that completes a successful licensing examination is required to submit fingerprints electronically. Fingerprint submission instructions and required forms are located on the Department’s website www.ncdoi.com under applications and forms for insurance licensing at the following location: ttp://www.ncdoi.com.
Proof of Financial Responsibility – Resident & Non-resident Applicants:
Resident and non-resident individual public adjusters are required to show proof of financial responsibility by providing a $20,000 bond or an irrevocable letter of credit issued by a qualified financial institution in the amount of $20,000. There is no grandfather clause to exempt existing public adjuster licensees. In order to maintain current authority to act as a public adjuster in North Carolina, individual public adjusters must provide the Department with evidence of financial responsibility by submitting a completed NC Bond-PA form. The NC Bond-PA form is posted on the Department’s website under insurance licensing forms at the following location: http://www.ncdoi.com. Public adjusters that fail to submit this required proof of financial responsibility will lapse in their authority to act as a public adjuster in North Carolina effective 7/1/2010.
Contact Agent Services Division at (919) 807.6800 if you have any questions.
The information provided on this blog is not legal advice and the reader is advised to consult an attorney regarding application of this information in any particular situation.
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