States with reciprocity agreements sometimes require you to become bonded in their state, even if you are bonded in your home state. Typically, you will need separate bonding for each line of authority. If you live in a state that recognizes and licenses public adjusters, you will need your public adjuster bond. You do not need another, a separate bond if you are an out of state adjuster registering to practice business in another state during state emergencies, provided you are practicing in the line of authority in which you are already bonded in your home state. Emergency policies can be found on a state’s website or by calling the state agency governing insurance professionals. The details of this policy will vary by state. Occasionally, public adjusters can also register in emergencies. Most often, independent claims adjusters who represent insurance companies are the ones who can register. Advocating for the insured as a professional public adjuster in states that do not license or regulate public adjusters is unrecognized and even prohibited by law, except in cases of emergency.ĭuring times of disaster and catastrophe, out-of-state adjusters licensed in a state other than the one experiencing the emergency can register as an emergency adjuster. Depending on the state in which you live and work, you may be required to get an insurance adjuster bond, or you may need to obtain a claims adjuster license of a different type.Īttorneys and insurance brokers are the only other two entities, besides an adjuster, that can speak for the insured during the claims process. If you engage in these activities, you are acting as an adjuster. In negotiating a claim, a licensed public adjuster is the only claims adjuster type that can speak on behalf of the insured involved in the claim. Public adjusters are a type of claims adjuster, paid by a policyholder, who appraises and negotiates claims for the policyholder. They guarantee payment to the obligee should a claim be placed on your bond and proven to be true. This is the company from which you are purchasing your bond. This is the party that can file a claim on your bond should a complaint be proven true and in violation of the bond agreement. You will also agree to operate according to regulations governing public adjusters.Īn obligee is the state agency involved – the party to which you are obliged. You will be obliged (required) to follow specific ethical business practices worthy of a claims adjuster license, specific to being an adjuster. ![]() You are also the obligor – the one obliged to do something. ![]() ![]() In this contract, you (or your company) may notice some new terms if you are new to bonding, including, “principal,” “obligor” and “guarantor.” These terms represent the three parties involved in the agreement.Ī principal is the purchaser of the bond, you or your company. In this case, you, the agency that is to grant you a license as a public adjuster, and the company through which you are purchasing your bond (the surety) are the three parties. An adjuster bond is a legally binding agreement among three parties.
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