Insurance Regulation and Licensing
Kentucky Regulation and Licensing
The Kentucky public adjuster exam tests the statutory and regulatory framework in KRS Chapter 304 and the role of the Kentucky Department of Insurance (DOI). A public adjuster is compensated by the insured to investigate, negotiate, or settle a first-party property claim. That is different from a company adjuster, who represents the insurer, and an independent adjuster, who may be retained by insurers. Kentucky requires a public adjuster to hold the appropriate adjuster license before soliciting or adjusting a claim; acting without a license is a violation even if the person calls the fee a “consultation” or “estimate.” The DOI issues, renews, and can suspend or revoke licenses, and the Commissioner enforces the Insurance Code. Licensees must keep application information current, pay renewal fees, complete required continuing education, and avoid unfair trade practices such as misrepresentation, rebating, or twisting. A license is not transferable, and a licensed public adjuster may not use an unlicensed person to do licensed adjusting work.
Worked example
An unlicensed contractor tells a homeowner, “I can get your fire claim doubled; just pay me 10% of the settlement.” The contractor is negotiating a first-party claim for compensation. Even without a signed contract, this is public adjusting without a license and exposes the contractor to cease-and-desist orders, fines, and denial of the fee. The homeowner should verify the license through the DOI.
Traps
Do not confuse public adjusters with company or independent adjusters. Do not assume a license from another state authorizes Kentucky work. Do not treat “free estimate” as a loophole when the person later negotiates the claim.