The Toledo Hail Claim and the Michigan License
Priya holds a Michigan public adjuster license and works from Grand Rapids. A Michigan client owns a rental duplex in Toledo, Ohio, that was damaged by hail. Priya signs a Michigan-format contract, sends her unlicensed assistant to inspect the roof and meet the Ohio tenant, and tells the client she can handle everything under her Michigan license because the policy was bought in Michigan. The Ohio insurer asks for proof of licensure. Priya sends her Michigan license and says Ohio reciprocity is automatic. She also advertises on her website, Licensed in Michigan, serving Ohio, Indiana, and Illinois. The assistant later tells the tenant which hail damage will be covered and suggests a dollar amount for the roof.
1. Is Priya's Michigan license sufficient to adjust the Ohio hail loss? Explain.
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No. Public adjuster licensing is generally tied to the jurisdiction where the loss is located and where the adjusting activity occurs. A Michigan license authorizes adjusting in Michigan; it does not automatically authorize Priya to negotiate an Ohio claim. Ohio has its own public adjuster licensing and contract requirements, and there is no automatic reciprocity that lets her use a Michigan license. The fact that the insured bought the policy in Michigan does not control; the damaged property and the claim are in Ohio. Priya should not sign an Ohio contract, negotiate with the Ohio insurer, or hold herself out as Ohio-licensed until she confirms Ohio requirements and obtains the proper license or associates with an Ohio-licensed adjuster. The insurer is entitled to a truthful licensure response.
2. What is the problem with sending her unlicensed assistant to inspect and meet the tenant?
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An unlicensed assistant may perform clerical or administrative tasks but cannot negotiate, advise on coverage, or perform adjusting functions. Inspecting the roof and meeting the tenant can be fact-gathering. But if the assistant discusses the claim, suggests what hail damage will be covered, or proposes a dollar amount for the roof, that is unlicensed adjusting. Priya must supervise and document the assistant's role; she cannot use the assistant to do what she herself is not licensed to do in Ohio. The Michigan license does not cover the assistant either. This creates exposure for unlicensed activity and for DIFS discipline if the conduct is directed from Michigan. The assistant's conversation with the tenant is especially risky because it may be treated as claim advice.
3. What should Priya do about the insurer's request for proof of licensure and her website advertising?
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She should respond truthfully: provide her Michigan license and state clearly that she is not yet Ohio-licensed, rather than claiming automatic reciprocity. She should remove or correct the website claim serving Ohio, Indiana, and Illinois unless she holds those licenses or works through properly licensed affiliates. She should notify the client in writing of the licensing limitation and either obtain Ohio licensure or refer the claim. If she has already negotiated, she should stop and document what was done. DIFS may treat false advertising and out-of-state unlicensed activity as disciplinary matters. Prompt correction is mitigating, but it does not erase the earlier misrepresentation. The client also needs a clear explanation of who can legally handle the Ohio claim.