Inactive License and a Fire Claim Contract
Renee is a public adjuster licensed in Idaho since 2021. Her two-year continuing-education period ended December 31, and she completed only 12 of the required 24 hours; three of those hours were ethics. In February she received a homeowner referral: a kitchen fire caused roughly $180,000 in damage, and the insurer has already paid $40,000 for emergency repairs. Renee emails a one-page contract that states a 12% fee on 'all insurance proceeds,' lists no license number, and contains no cancellation notice. She tells the homeowner, 'Sign tonight and I can start negotiating tomorrow.' The homeowner asks whether the contract is valid and whether Renee can represent her while her license shows inactive. Renee also has not completed her remaining CE or paid the late reinstatement fee.
1. May Renee represent the homeowner while her license is inactive?
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No. An Idaho public adjuster must hold an active license to solicit, negotiate, or settle a claim for compensation. Inactive status means the Department has removed the authority to act, even if the person once passed the exam. Signing the contract or negotiating the $180,000 fire claim would be unlicensed activity and could expose Renee to a cease-and-desist order, fines, license denial, and forfeiture of fees. The $40,000 emergency payment does not create an exception. She may refer the homeowner to an active licensee or perform only purely clerical work that does not involve representing the insured. She should tell the homeowner in writing that she cannot act until reinstated.
2. Identify the contract deficiencies and explain what a compliant contract should contain.
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The contract is not compliant. A public adjuster contract in Idaho must be written, identify the adjuster and license number, describe the services and fee, and give the insured a clear right to rescind within the statutory period, commonly three business days. It must also be signed and a copy given to the insured. This contract lacks a license number and any cancellation notice, and the 12% fee on all insurance proceeds is ambiguous because it could include money the insurer already admitted. Renee should not ask for a signature. Once licensed, she must use a compliant contract, explain the fee in plain language, and not charge for services she did not perform.
3. What must Renee do to restore her license and handle the CE deficiency?
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Renee must complete the missing 12 hours of continuing education, including the required ethics hours, for a total of 24 hours in the two-year cycle. She then applies for reinstatement and pays any late fee or penalty the Department assesses. If she is beyond the reinstatement window, she may have to reapply and possibly retake the exam. She should not backdate CE or claim to have been active. Until the Department shows active status, she cannot represent the homeowner. She should document the status and refer the claim.