What are the regulatory aspects of representing an insured mortgagee with their hazard claims?
What are the different types of adjusters?
Are there any exceptions to licensing?
How much can a public adjuster charge for their services?
How do I choose a competent and qualified Public Adjuster?
What are the regulatory aspects of representing an insured mortgagee with their hazard claims?
According to the National Association of Insurance Commissioners, in order to represent an insured one must be licensed as a public insurance adjuster.
As of October 2010, 44 states and the District of Columbia license public insurance adjusters. Most states require fingerprinting, licensing bonds, as well as the successful completion of an examination and continuing education requirements. Currently three states disallow public adjusting and consider it the unauthorized practice of law.
What are the different types of adjusters?
There are three types of adjusters:
Company Adjusters – Employed by the insurance company to represent the interests of the insurance company. Most states do not test or license company adjusters.
Independent Adjusters – Employed by an adjusting company to investigate a loss for the carrier, they are engaged by, and permitted only to represent, the interests of the insurance company. Some states require licensing of Independent Adjusting companies but typically not the individual adjuster. Independent Adjusters are not prohibited from having ownership interest in repair and salvage companies. This is a potential conflict of interest if the Independent Adjuster directs or influences the insured to hire certain companies to repair their damaged property. One could then ask, “how independent are they”?
Public Insurance Adjusters – The only adjusters qualified and authorized to represent the insured’s interest. They are not paid by the insurer, but rather are retained by the insured and represent the insured only. In California and many other states, Public Insurance Adjusters are not permitted to own any part of or participate in the repair of any assets for which they file a claim or represent the insured.
Are there any exceptions to licensing?
According to the NAIC there is an exception for an attorney-at-law admitted to practice in the state in which the loss occurred only when acting in his or her professional capacity as an attorney.
How much can a public adjuster charge for their services?
Most public adjusters charge a fee consisting of a percentage of the claim proceeds. Certain
states' regulations contain fee caps. Currently, 13 states have permanent fee caps and an additional 2 states
enact fee caps for certain designated catastrophes.
QCMC complies with industry regulations and abides by all statutory fee limitations.
How do I choose a competent and qualified Public Adjuster?
The National Association of Public Insurance Adjusters is the
industry’s trade group. All members must meet certain qualifications to be considered for
membership including compliance with licensing regulations. All NAPIA members must adhere to the
industry Code of Conduct as outlined in the
Rules of Professional Conduct and Ethics.
NAPIA also has a Professional Education and Certification program administered through
the American Institute for CPCU and the Insurance Institute of America (AICPCU/IIA).
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It is recommended that when selecting a professional public adjuster that you research
the qualifications of the firm as well as checking references.