Adjuster Licensing and Regulation
Licensing framework
Mississippi licenses adjusters through the Mississippi Insurance Department (MID). The license category matters: a public adjuster contracts with and represents the insured for compensation; an independent adjuster represents insurers through appointments; a company adjuster works directly for one insurer. A public adjuster license is not an insurer appointment and does not authorize representing the insurer. Applicants must pass the adjuster exam, submit fingerprints and background information, pay fees, and maintain a resident or nonresident license in good standing. Continuing education is typically 24 hours per two-year term, including ethics hours; keep certificates because CE audits happen.
Contract and conduct rules
Public adjuster contracts must be written, signed by the insured, identify the loss, state the compensation method (percentage, hourly, or flat), and disclose the insured's right to cancel within the statutory cancellation window. Never charge or collect a fee for claim work before the contract is executed. Solicitation is restricted immediately after a loss; do not canvass at a disaster scene or use high-pressure tactics. A public adjuster owes a fiduciary duty to the insured, cannot represent both sides, and cannot split fees with unlicensed persons.
Worked example
After a tornado, a homeowner asks a friend to negotiate with the insurer for 10% of the settlement. The friend has no license. This is unlicensed public adjusting, even if the friend calls the fee a "consulting" charge. The friend may not negotiate, and the insured should use a licensed public adjuster or the insurer's adjuster.
Traps
- Treating an independent adjuster license as authority to represent insureds for a fee.
- Missing the contract cancellation notice, which can void the fee agreement.
- Letting a license lapse while still negotiating a claim.
- Assuming an agency or LLC license licenses its individual adjusters.