The Out-of-State File and the Unlicensed Trainee
You are a Georgia-licensed independent adjuster employed by a Georgia third-party administrator. Your supervisor assigns you a $1.2 million fire claim in Chattanooga, Tennessee, because you are 'the only one available.' You have never held a Tennessee adjuster license. The policy is written by a Georgia-domiciled insurer that is authorized to do business in Tennessee. Your firm also wants Marcus, an unlicensed trainee in Atlanta, to review the insured's inventory and write the contents estimate; Marcus will not talk to the insured. The insured's attorney emails asking for your license number and says he will 'check every state.' Your supervisor says the Georgia license is enough because the insurer is Georgia-based.
1. Can you handle the Tennessee claim on your Georgia license? What must happen before you begin?
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No. Adjuster licensing is state-specific. A Georgia adjuster license authorizes you to act as an adjuster in Georgia, not in Tennessee. The fact that the insurer is Georgia-domiciled does not change the location of the loss or the licensing requirement of the state where you are investigating and negotiating the claim. You need a Tennessee adjuster license, a nonresident license if eligible, or another lawful authorization before you perform adjuster duties on this file.
Notify your supervisor in writing that you cannot handle the claim until licensed. Do not begin by 'just gathering information' if that means investigating, evaluating damages, or communicating with the insured or counsel about the claim. Ask the firm to obtain the Tennessee license or assign a Tennessee-licensed adjuster. A supervisor's instruction is not a defense to unlicensed adjusting; the licensee is personally responsible for compliance. Document the assignment, your objection, and the steps taken to cure the problem.
2. Can Marcus prepare the contents estimate without a license?
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No, not if he is evaluating and quantifying the loss. Writing a contents estimate is a core adjusting function: it requires determining what is claimed, what is damaged, what is covered, and what the items are worth. The fact that Marcus will not speak to the insured does not make the work clerical. An unlicensed trainee may perform administrative tasks such as data entry, uploading photographs, or organizing documents under supervision, but he may not investigate the claim, make coverage recommendations, or set values.
The firm should either license Marcus or assign a licensed adjuster to prepare and review the estimate. If Marcus prepares a draft for training purposes, a licensed adjuster must independently verify the inventory, apply the policy, and take responsibility for the result. Do not let an unlicensed person's work product become the basis for a payment or denial. Document the supervision and review.
3. How should you respond to the insured's attorney about your license?
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Respond truthfully and promptly. Give your Georgia license number and explain that you are obtaining the required Tennessee authorization or that the file will be reassigned to a Tennessee-licensed adjuster. Do not claim to hold a Tennessee license you do not have, and do not ignore the question. The attorney is entitled to verify who is handling the claim.
Once the licensing issue is resolved, confirm your authority in writing. If the firm reassigns the file, tell the attorney who the new adjuster is and provide that person's license information. Preserve the email and your response. A candid correction is far better than a misstatement that could be characterized as unlicensed adjusting or misrepresentation. Also notify your supervisor that the attorney is checking licenses so the firm can address the assignment promptly.