GA Claims Adjuster common mistakes
GA Claims Adjuster · Understand the traps and how to avoid them.
Assuming anyone who negotiates a claim on behalf of an insured is automatically acting as a public adjuster, without checking the licensing thresholds and statutory exclusions.
Candidates conflate the general activity of 'adjusting' with the statutory definition of a public adjuster, forgetting that Georgia law limits public adjusting to claims for fire, marine, and casualty losses and excludes certain professionals (e.g., attorneys, appraisers, photographers) acting within their normal scope.
What to do instead
Memorize the exact statutory definition and exclusions for public adjusters (O.C.G.A. § 33-23-1 et seq.). Practice sorting scenarios into 'public adjuster', 'company adjuster', 'independent adjuster', and 'non-licensee exempt activity'. Create a one-page chart listing who must be licensed and who is exempt.
Treating the public adjuster's contract requirements as optional or interchangeable with general adjuster rules.
Candidates skim over the specific contract content rules (e.g., written contract, 10% cap on fees for certain claims, cancellation rights, required disclosures) because they assume all adjuster contracts are governed by the same broad standard.
What to do instead
List the mandatory contract elements for public adjusters (e.g., fee limits, right to rescind within a set period, statement of total compensation, prohibition on advance fees) and review them against sample scenarios. Quiz yourself on the percentage caps and timing rules until you can recall them without notes.
Confusing the licensing and appointment process for independent adjusters with that of public adjusters, including pre-licensing education and exam requirements.
The exam tests both categories, but candidates often study one set of requirements and apply it to the other, missing differences such as the public adjuster's higher pre-licensing hours or the separate bond requirement.
What to do instead
Build a side-by-side comparison table of independent vs. public adjuster licensing: pre-licensing hours, exam, fingerprinting, bond, continuing education, and appointment. Review it weekly and test yourself with 'which category?' flashcards.
Ignoring the distinction between a 'counselor' and a 'public adjuster' when a licensee offers advice on claims without negotiating settlement.
Candidates assume any claim-related assistance requires a public adjuster license, overlooking that Georgia has a separate 'counselor' license for those who advise on claims but do not negotiate or settle them. This is a low-frequency but high-confusion area.
What to do instead
Study the statutory definition of 'counselor' and its permitted activities. Create a Venn diagram showing overlap and differences with public adjusters. Practice scenario questions where the key fact is whether the person negotiates or merely advises.
Applying the state's adjuster licensing rules to surplus lines transactions, failing to recognise that surplus lines brokers have distinct licensing, placement, and disclosure obligations.
Surplus lines is a separate domain, but candidates often lump it with general adjuster licensing and miss the unique requirements such as the diligent effort search, the surplus lines broker bond, and the prohibition on placing coverage with unauthorised insurers without proper disclosure.
What to do instead
Memorise the surplus lines broker licensing prerequisites (e.g., valid property/casualty license, bond, exam) and the placement rules (diligent effort, declination documentation, prominent disclosure notice). Use a checklist approach for each surplus lines scenario.
Overlooking the public adjuster's fiduciary duties and the prohibition on certain compensation arrangements, such as sharing fees with unlicensed persons or accepting compensation from both the insured and the insurer.
Candidates focus on the mechanics of claims handling and forget the ethical and legal constraints that apply specifically to public adjusters, including conflict-of-interest rules and fee-sharing prohibitions.
What to do instead
Review the statutes and regulations on public adjuster compensation and fiduciary responsibility. Create a list of prohibited arrangements and test yourself with 'allowed or prohibited?' scenarios. Pay special attention to dual compensation and referral fee rules.
Misidentifying who must be licensed as a 'public adjuster' when an insured's representative is paid a contingency fee based on the claim settlement.
Candidates miss that the method of compensation (contingency fee) is a strong indicator of public adjusting activity, and they may incorrectly assume that only those with the title 'public adjuster' need a license.
What to do instead
Study the statutory definition of public adjuster, which focuses on compensation contingent on the amount of the claim settlement. Practice identifying the key facts (contingency fee, negotiation, representation of insured) that trigger the licensing requirement.
Assuming that a surplus lines broker can bind coverage with an unauthorised insurer without any additional steps, ignoring the diligent effort requirement and the placement documentation.
Candidates understand that surplus lines exist for hard-to-place risks but forget that the broker must first attempt to place the risk with authorised insurers and document those efforts before using a surplus lines insurer.
What to do instead
Memorise the diligent effort search requirements: which insurers must be approached, how many declinations are needed, and what documentation must be kept. Review the surplus lines placement checklist and apply it to sample scenarios.
Confusing the continuing education (CE) requirements for public adjusters with those for independent adjusters or surplus lines brokers, including hours, subject areas, and deadlines.
Each license type has its own CE rules, and candidates often study one set and assume it applies across the board. The exam may test specific CE hours or topics for public adjusters.
What to do instead
Create a CE comparison chart for each license type: total hours, ethics hours, subject-specific hours, and renewal cycle. Review it regularly and quiz yourself on the differences.
Failing to recognise the limits on a public adjuster's authority to act without a written contract, or assuming verbal agreements are sufficient.
Candidates may rely on general contract principles and overlook the statutory requirement that public adjuster contracts must be in writing and contain specific disclosures, and that the insured has a right to cancel within a certain period.
What to do instead
Memorise the contract formation requirements: written agreement, signatures, required disclosures, and cancellation rights. Practice identifying defective contracts in sample scenarios and review the consequences of non-compliance.