I85PREP
⌘ K
NM Public Adjuster study materials
NM Public Adjuster study resources

NM Public Adjuster: Licensing, Appointment, and Regulatory Requirements for Public Adjusters

NM Public Adjuster · Work through your exam, one topic at a time.

All guide sections

Licensing, Appointment, and Regulatory Requirements for Public Adjusters

Domain 2 - Licensing, Appointment, and Regulatory Requirements for Public Adjusters

This domain covers who may act as a public adjuster in New Mexico, how the license is obtained and kept, and what a compliant engagement looks like from the first contact to the final invoice.

Licensed, not appointed

A public adjuster is licensed by OSI to represent the insured for compensation. Unlike insurance producers and company staff adjusters, a public adjuster holds no insurer appointment - no carrier sponsors the license. A public adjuster may not act for the insurer on the same claim, may not represent both sides, and may not acquire an ownership interest in the claim.

Getting and keeping the license

  • Meet the statutory qualifications, file the application, and pass the required examination unless exempt.
  • Provide fingerprints and background information; disclose criminal history and prior administrative actions.
  • File the surety bond required by statute; the bond protects the public and is not professional liability coverage.
  • Complete continuing education and renew on the cycle OSI sets; report address changes and any discipline promptly.
  • Nonresident licensing depends on reciprocity or statutory eligibility - it is never automatic.

Contract requirements

Every engagement must be in writing, signed by the insured, state the compensation method and amount, describe the services, and include the required notices and cancellation rights. Compensation may not exceed the contract terms and any statutory maximum, and no settlement may be made without the insured's authorization.

Worked example

A restoration contractor offers a newly licensed adjuster 30% of every fee in exchange for leads. This fails repeatedly: adjusting compensation must flow to the licensed adjuster under the insured's written contract, unlicensed entities may not share adjusting fees, and the arrangement creates a prohibited conflict of interest. Decline the split and disclose the referral relationship in writing.

Traps that cost marks

  • Assuming an out-of-state license transfers without an application.
  • Soliciting at a loss scene or implying you represent the insurer.
  • Using a contract form that omits the compensation terms or cancellation notice.