Insurance Adjuster License Requirements: Everything you Need to Know
What is an Insurance Adjuster?
An insurance adjuster, or claims adjuster, inspects property damage, personal injury, or healthcare claims to determine how much money an insurance company will pay for a loss. An adjuster specializes in examining claims by interviewing witnesses, medical professionals, the police, and the person filing the claim to gather information regarding the loss, accident, or injuries. They use this information to approve or reject a claim or to negotiate settlements.
Types of Adjuster Licenses
A company (staff) adjuster is a salaried employee of a specific insurance company and investigates, evaluates, and settles claims for that insurer only.
An independent adjuster is an employee of an adjuster firm that can represent more than one insurer and settles claims for the insurer’s customers only.
A public adjuster is an independent contractor representing the financial interests of policyholder or named insured, who pays the adjuster for their services.
What are the Requirements to Become a Company/Staff Adjuster?
The following 15 states require Staff/Company adjuster licensing and must take their home state exam:
Staff/Company adjusters must take their home state exam, which is the same exam for independent adjusters. 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.
What are the Requirements to Become an Independent Adjuster?
There are 34 states that require independent adjuster licensing:
Independent adjusters in these states must be licensed in their home state before obtaining a nonresident license to do business in another state. Generally, independent adjuster licenses are issued as All Lines, General Lines, or Property and Casualty.
The following 14 states require either prelicensing education or work experience to obtain a license:
What are the Independent Adjuster Continuing Education Requirements?
In addition to obtaining a license, the following states also require continuing education to maintain the license:
While the number of required CE hours varies, most states require 24 hours biennially including ethics.
What is the Insurance Adjuster Licensing Course?
To become licensed as an insurance adjuster, you will need to demonstrate entry-level knowledge of the industry by passing a state licensing exam. An insurance adjuster licensing course will deliver the content needed to successfully complete the education and examination requirements. Testable topics include: homeowners and dwelling coverage, personal auto, personal umbrella, commercial property, commercial general liability, businessowner’s coverage, commercial auto, crime, surety, workers’ compensation, farm insurance, and commercial umbrella coverage. Adjuster-specific information includes claims investigations, handling disputes of coverage, accepting or denying a claim, and settlement negotiations. This course also provides an overview of general insurance and contract concepts, basic insurance terminology, covered perils, the policy structure, conditions, exclusions, additional coverages, applicable endorsements, policy limits, and state-specific regulations based on the state where you are applying for a license.