Posted: Tue Sep 02, 2008 5:06 am Post subject: insurance adjuster insurance
i am looking into becoming a licensed insurance adjuster and i saw somewhere that i would have to have a $10,000 bond is this true and would it be expensive to get?
Well, the state of Texas may have a specific requirement in this regard. According to the Texas Department of Insurance the public adjusters and the trainee adjusters are required to maintain $10,000 bond towards their financial responsibilities as a professional. I guess it works like the Professional Liability Insurance.
Here is an excerpt from the TDI website:
Quote:
Each public insurance adjuster, as a condition for being licensed, and each trainee as a condition for receiving a temporary training certificate and as a condition for continuing the license or training certificate in force, must maintain proof of financial responsibility by obtaining a surety bond in the principal sum of not less than $10,000 that covers all the required perils and losses set forth under Insurance Code Article 21.07-5 §
jlovett185, you are required to submit the properly filled license application to the Insurance Department of Texas in order to obtain the license to operate in the state.
Jeremy, is right that this bond is required to cover the losses that may arise from the negligence of the public adjuster. Every independent adjuster is required to obtain separate bond and can't rely on the bonds obtained by the other public adjusters. However, adjusters associated with the insurance companies are not required to pay for such bonds.
You can get more information regarding this issue in the Texas Insurance Department's website.
Hi there,
The Texas dept. of insurance has a bond section which calculates the yearly cost towards a surety bond to be 2% of the entire bond value, which would be worth $200 for a surety bond worth $10,000.
There would be a charge of $50 to sit for an insurance adjuster exam & a re-exam fee of $50 if you're sitting for another time.
Regards, Fatman
