Insurance Adjusters License Requirement
An adjusters license is required for an individual or business entity who, as an independent contractor, or as an employee of an independent contractor, adjustment bureau, association, insurance company or corporation, general property and casualty agent, managing general agent, or self-insured, investigates or adjusts losses on behalf of either an insurer or self-insurer, or for any person who supervises the handling of claims.
In addition, a license is required for a public insurance adjuster, defined as a person who for compensation acts on behalf of an insured in negotiating the settlement of a claim.
License Not Required
A license is not required for a licensed agent of an authorized insurer who processes undisputed or uncontested losses under policies issued by the agent, nor a person who performs clerical duties with no negotiations.
In addition to the other requirements for obtaining a licensing (see "Obtaining a License"), a person applying for an adjusterslicense must meet the following requirements:
- Be an individual or business entity
- Be a resident of the State of Texas, or a resident of a state or country which will permit adjusters who are residents of Texas to act as an adjuster in their state or country.
- Have experience or special education or training in handling of losses to the extent the person is competent to fulfill the responsibilities of an adjuster.
Exceptions to Required License
An individual who is undergoing education and training as an adjuster under the direction and supervision of a licensed adjuster, may for a period not to exceed 12 months act as an adjuster without having an adjuster's license if the name of the trainee has been registered with the commissioner.
No license is required of a nonresident adjuster for the adjustment of a single loss, or losses arising out of a catastrophe, or who is acting as temporary substitute for a licensed adjuster.
In the event of a catastrophe or emergency which arises out of a disaster, act of God, riot, civil commotion, conflagration or other similar occurrence, the commissioner upon application may issue an emergency license to persons who are residents or non residents. Emergency licenses remain in force for a period not to exceed 90 days and can be extended by the commissioner for an additional 90 days.
Exemptions to the Licensing Exam
The exam requirement shall not apply to any of the following:
- An applicant who for the 90-day period next preceding the effective date of the Adjusters License Act, has been principally engaged in the investigation, adjustment, or supervision of losses and who is so engaged on the effective date of this Act. (On or before 5/28/73 through and on 8/27/73)
- An applicant who is licensed as an adjuster in another state which has a reciprocal agreement entered into by the Texas commissioner.
- Any person who has completed a course or training program in adjusting losses as prescribed and approved by the Commissioner and is certified to the Commissioner of completion of the course or training program, and has passed an examination testing his or her knowledge and qualification, as prescribed by the Commissioner.
- Persons holding CPCU designations plus one year of Texas claims experience.
- Persons completing all parts of the Insurance Institute of America adjusting course plus one year of Texas claims experience.
Types of Adjusters Licenses
Adjuster licenses are issued in the following lines:
- All lines
- Property and Casualty
- Workers' Compensation