Public Adjuster Licensing
What this domain tests
Who must hold a Pennsylvania public adjuster license, how the license is obtained and kept, and what the license does not authorize.
Who needs a license
- Any person who, for compensation, acts for an insured to negotiate, settle, or advise on a first-party property or casualty claim, including soliciting, investigating, and preparing the claim.
- Staff adjusters (carrier employees) and independent adjusters (carrier-hired) work for insurers under a different license category. Public adjusters represent the insured only.
- Contractors, roofers, and "claim consultants" who negotiate a settlement for a fee are acting as public adjusters and must be licensed. A contractor may measure, estimate repairs, and hand the estimate to the insured or adjuster, but may not negotiate the claim.
- A business entity providing public adjusting services needs its own entity license in addition to the individual license held by each adjuster.
Obtaining and keeping the license
- Apply to the Pennsylvania Insurance Department, meet the statutory age, education, and examination requirements, submit background information and fingerprints, and file the required surety bond.
- Pass the state examination, renew on the Department's schedule, and complete continuing education.
- Nonresident adjusters must obtain a Pennsylvania nonresident license; a home-state license alone is not authority to work in Pennsylvania.
Worked example
A homeowner's relative offers to "handle the paperwork" for 10% of the settlement. He holds no license. Because he is negotiating a first-party claim for compensation, he is engaged in unlicensed public adjusting. The arrangement is unenforceable, anyone paying him faces discipline, and the insured should be directed to a licensed adjuster. The test is compensation plus representation of the insured, not the job title used.
Traps that cost marks
- Assuming an out-of-state license travels.
- Forgetting the separate entity license.
- Believing a contractor's license permits claim negotiation.
- Letting a license lapse while claims are open.