Adjuster Licensing Requirements
Domain 1 covers Delaware's adjuster licensing framework under Title 18, Chapter 17 of the Delaware Code and the Department's implementing rules. Questions test who must be licensed, which category fits, what an applicant submits, how the license stays in force, and what conduct endangers it.
Who must hold a license
- Anyone who for compensation investigates, negotiates or settles insurance claims in Delaware needs a Delaware adjuster license. It belongs to the individual, not the agency.
- Company (staff) adjusters are salaried employees of one insurer; independent adjusters contract with several carriers; public adjusters are retained by the insured and paid from the recovery, so their contracts, fees and solicitations are regulated more tightly.
- Attorneys acting legally, appraisers and arbitrators, and clerical staff who only transmit information are exempt. The line is discretion: an unlicensed assistant who negotiates a figure or authorizes payment is adjusting.
Earning and keeping the license
- Residents must be 18, pass the Delaware adjuster exam, submit a fingerprint-based background check, and file through NIPR with the fee.
- Nonresidents obtain a Delaware nonresident license, usually relying on the home-state license under NAIC reciprocity; the home state must be the principal place of business and stay active.
- Adjuster licenses are not appointed the way producer licenses are. The insurer remains accountable: an independent adjuster acting within apparent authority binds the carrier.
- Continuing education is a renewal condition for residents; keep certificates for the required retention period.
- Report name and address changes promptly. A lapsed license may be reinstated, but work done while lapsed is unlicensed activity.
Worked example
A Maryland claims service wants its salaried employee to handle Delaware homeowners claims from a Baltimore desk, with settlement authority. The employee exercises discretion over Delaware claims, so a Delaware license is required. Because the employee resides and works in Maryland, the correct route is a nonresident application through NIPR keyed to the Maryland license. No appointment is filed, but each carrier must confirm the license is active on every date the adjuster commits it to payment.
Traps that cost marks
- Assuming a home-state license travels automatically; reciprocity is an application, not an inheritance.
- Calling a negotiator clerical.
- Confusing adjuster licensing with producer appointment.
- Letting CE slide and treating expiration as a technicality.
- Overlooking the stricter public adjuster contract and fee rules.