Public Insurance Adjuster
Table of Contents
- Applicable forms
- Authorizing Act
- Filing Requirements
- Fees (Resident and Non-Resident)
- Study Material
- License Term
- Additional Information
- Application for Individual Adjuster License, form LIC 041-A.
- Application for Adjuster Business Entity License, form LIC 042-A.
- Bond of Public Insurance Adjuster, form LIC 94A.
- Application for Branch Office Certificate, form LIC 31A-13.
- Public Insurance Adjuster Authorization Application, form LIC 0100A.
- Public Adjuster Sample Contract form.
Authorizing Act: Section 15007 of the California Insurance Code (CIC) reads, in part:
A Public Insurance Adjuster is a person who, for compensation, acts on behalf of or aids in any manner, an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property or any person who advertises, solicits business, or holds himself or herself out to the public as an adjuster of those claims and any person who, for compensation, investigates, for those losses on behalf of any public insurance adjuster.
- Minimum Age: 18 years
- Residency: California residency is not required.
- Entity Types: Individual, corporation, partnership, nonprofit corporation, unincorporated association, limited liability company.
- Prelicensing Experience/Education: Must have two years certified experience in the insurance adjusting field. 2,000 hours of compensated time in the adjusting field is equal to one year of experience.
- Continuing Education: Section 15059.1 of the CIC was amended to establish a CE requirement of 24 hours including 3 hours of ethics during the two-year license term for California resident public insurance adjusters.
Individual License - Application for Individual Adjuster License, form LIC 041-A.
- Business Entity License - Application for Adjuster Business Entity License, form LIC 042-A.
- Bond: A Bond of Public Insurance Adjuster, form LIC 94A in the penal sum of $20,000 executed in California, by a California admitted surety. If the applicant is a business entity, the business entity must be named as principal.
- Branch Office Certificate: If the applicant intends to conduct business from any location in California other than the principal place of business, a Branch Office Certificate must be obtained by submitting an Application for Branch Office Certificate, form LIC 31A-13, with fee.
- Public Insurance Adjuster Authorization Application: Form LIC 0100A, must be submitted for each person who is employed by a licensed public adjuster. All persons acting as a public insurance adjuster must be licensed as such.
- Contract: Pursuant to Section 15027 of the California Insurance Code(CIC), no licensee shall, directly or indirectly, act within this state as a public insurance adjuster without having first entered into a contract, in writing, on a form approved by the insurance commissioner and executed in duplicate by the public adjuster and the insured or a duly authorized representative. One original contract shall be kept on file by the licensee, available at all times for inspection, without notice, by the commissioner or his or her duly authorized representative, and one original contract shall be given to the insured.
The California Department of Insurance (CDI) has provided a sample contract form for Public Insurance Adjusters to utilize. This sample contract form satisfies the requirements of Section 15027 of the CIC but the applicant is not required to use it. However, all contract forms must meet the requirements of CIC Section 15027 and must be approved by the CDI's legal division prior to use. Using this sample contract may help to speed up the approval process.
Note: Pursuant to Section 15027(v) of the CIC prior to the signing of the contract, the licensee shall provide the insured with a separate printed disclosure document that bears the name and license number of the licensee.
Fingerprint Impressions: Fingerprint impressions are required for unlicensed applicants. If an examination is required, fingerprint impressions may be taken at the California examination sites.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
- Application Fee - two year fee: $218 (effective March 1, 2015 this fee will be $240).
- Examination Fee: $56 (effective March 1, 2015 this fee will be $62). This fee will be charged when the first examination is scheduled using PSI examination scheduling service. Do not include the application fee with the examination fee when you submit your adjuster application.
- Branch Office Certificate: $32 (effective March 1, 2015 this fee will be $35).
- Authorization Application: $56 (effective March 1, 2015 this fee will be $62).
- Fingerprint Processing: Review Fingerprint processing link for fees.
- Examination: Both resident and non-resident applicants must pass the qualifying license examination prepared and administered by the Department.
Study Material: The Public Insurance Adjuster Examination Objectives were developed as a study guide to assist in the preparation for the examination.
Public Adjuster licenses are issued for two year terms. Specifically, the term of the license begins the date the license is issued and ends the last day of that same calendar month two years later.
The California Department of Insurance (CDI) discontinued mailing renewal notices to individuals and business entities licensed through CDI's Producer Licensing Bureau. CDI now emails licensees a renewal notification to their e-mail address on record. The e-mail notification includes the license number, license term, license type, and information regarding any continuing education requirements. You can update your e-mail address using CDI's Online Address Change service.
If renewal application is not received, complete the form Application to Renew Public Insurance Adjuster license LIC 448-29C, or the form Application to Renew Business Entity Public Adjuster license LIC 448-29D and mail the completed form to California Department of Insurance, P.O. Box 311, Sacramento, California 95812-0311.
Note: An expired license or branch office certificate may be renewed within one year after its expiration upon filing an application for renewal and paying the required renewal fees. If the license or certificate is renewed more than 30 days after its expiration, a delinquency fee is also required.
- Federal law (Title 18 United States Code Section 1033) prohibits anyone who has been convicted of a felony involving dishonesty or a breach of trust from conducting the business of insurance unless they have obtained the written consent of the Insurance Commissioner. It is a violation of this statute to conduct business of insurance without the Commissioners written consent. If you have been convicted of a felony involving dishonesty or a breach of trust then you must attach a copy of this consent. If you have not obtained this written consent you must do so by filing a 1033 Short Form Application for Written Consent prior to filing your application.
- A Pocket Identification Card will be issued to the licensee.
- An authorization application, form LIC 0100A, with fee must be filed for all persons employed by the applicant to settle claims. An authorization application must also be filed when such person ceases to be employed in that capacity.
- A branch office must be a bona fide place of business. A change in the person in charge of the branch office or a change of address for the branch office must be reported to the Department within 30 days of such change.
- In the case of an organization, any change in the officers, partners, and stockholders owning 10% or more of the corporate stock, directors, or controlling persons must immediately be reported to the Department giving full names, residence address and social security number.
- To obtain insurance licensing forms by mail, send an e-mail request to: Producer Licensing Bureau.
- To obtain Adjuster licensing information, you may phone the Producer Licensing Bureau's Adjuster unit at (916) 492-3085.
- All fees mailed to the department must be addressed to: California Department of Insurance, P.O. Box 1139, Sacramento, CA 95812-1139.
All filing fees are not refundable, whether or not the application is acted upon or an examination taken.
LIC 670B (Rev. 04/2014)