Insurance adjusters play a vital part in the life cycle and outcome of an insurance claim. Adjusters assess damages and work between the insurance company and client to settle claims.
A career as an insurance adjuster is great for those who enjoy investigative work and can focus on details such as the specifics of a policy and the circumstances of a claim.
A career as an insurance adjuster involves understanding the specifics of insurance coverage and policies as well as investigating losses and damage. An insurance adjuster plays a critical role in determining a fair payout to provide benefits for the policyholder and protect the insurance company from fraudulent claims.
Insurance adjusters should be familiar with the insurance process, as well as be able to determine value and damage to insured property. All insurance professionals, including insurance adjusters, must comply with their state’s license requirements.
Follow our step-by-step guide to get your insurance adjuster’s license.
Insurance licensing is regulated at the state level. Everything from pre-licensing education requirements to exam content varies by state. Becoming an insurance adjuster requires familiarity with your state’s requirements and process from education and exams to your final application.
For states that require an insurance adjuster license, you must complete the steps to apply for a resident license in your state. For states that do not offer an insurance adjuster license, you will be able to work as an insurance adjuster without a license in your state only.
If your state does not offer an insurance adjuster license, you can choose a Designated Home State (DHS) to pursue licensure. Two of the most popular states to designate as DHS are Texas and Florida. Simply complete the non-resident insurance adjuster license steps and application.
Many states require that insurance adjusters show your education as an insurance adjuster as a prerequisite to applying. These education requirements can be met in a variety of ways. For example, to become a Resident All-lines Insurance Adjuster in Florida, you must complete one of the state-approved pre-licensing education courses or pass the state exam.
The following courses satisfy the insurance adjuster professional knowledge requirement in Florida and mean that you are exempt from the state insurance adjuster licensing exam.
Many states include a similar list of approved professional licenses and certifications that will satisfy the insurance adjuster licensing education requirement. If you meet one of these requirements, you will often be able to skip the insurance adjuster license exam step and proceed right to your state’s application.
If you do not have a certification or background in insurance, you will still be able to pursue your insurance adjuster license by showing your knowledge on a state insurance adjuster license exam. A pre-license education course is the best way to prepare for the state insurance adjuster exam.
Each state that offers an insurance adjuster license includes an exam content outline to help applicants prepare. The insurance adjuster’s exam content outline is the most comprehensive list of testable material available and is reviewed in exam preparation courses. Learn more about your state’s insurance adjuster exam by reviewing your state’s requirements.
You will need to understand and apply the following information on the state insurance adjuster exam:
A pre-license education course will help you learn the ins and outs of being a claims adjuster and the insurance industry.
Your state will require your personal and background information to process your insurance adjuster license application. You can apply for your insurance adjuster license through your state’s Department of Division of Insurance. Most use an online secure portal to keep your information safe.
Application fees range from $20 to over $200. You can expect to pay multiple fees to become fully licensed as an insurance adjuster.
Some states, such as Texas, offer an emergency insurance adjuster license during disasters. If you apply as an emergency insurance adjuster, you must be sponsored by a licensed insurance adjuster or licensed insurance company in that state. Emergency insurance adjuster licenses are only valid for 90 days.
Many states also require fingerprints, which the applicant must pay for as part of their application. Fingerprinting fees are typically around $50 and are completed through a third party. Even if you have provided fingerprints previously in your state, you may be required to complete a new set as part of your insurance adjuster application.
Your state will review your application and notify you when your insurance adjuster license is processed and complete. Congratulations! You are officially a licensed insurance adjuster.
While not a requirement to be licensed as an insurance adjuster, having state reciprocity can greatly increase your ability to process claims in neighboring states or areas during a disaster. If you plan to work as a catastrophe insurance claims adjuster, you will likely need to pursue a license in multiple states.
Many states offer reciprocity with other states, knowing that insurance adjusters may need to handle claims in multiple states or areas. Reciprocity allows insurance adjusters licensed in one state to pursue licensure in another state without completing new requirements, such as training or continuing education.
If you plan to work as a Catastrophe adjuster, you may be required to travel to areas hit with natural disasters to work on insurance claims. Having reciprocity in these areas means that you will be licensed to work as soon as you are needed. States such as Texas and Florida that offer DHS licenses are areas commonly impacted by natural disasters, such as hurricanes.
Insurance adjuster state reciprocity can apply to licensing, continuing education, or both. It is important to learn your state’s requirements to see if you may be able to save time and fees while pursuing reciprocal licenses.
If you live in a state that does not require insurance adjusters to hold a license, you will be able start working right away. But you will be limited to conducting business in that state, which can mean less work and earnings. If you want to maximize your professional opportunities as an insurance adjuster, you should pursue license as a non-resident in a Designated Home State.
Insurance adjuster courses can range from a few weeks to a few months if you need to take and pass the state exam. Remember that preparation is important. Focused study using an insurance adjuster exam prep course can save you time and money by helping you pass your exam on the first attempt.
Insurance claims adjusters must be able to confidently investigate insurance claims and complete paperwork. A lot of an insurance adjuster’s time is spent outside, examining property such as buildings or automobiles, to determine damage and estimated repair costs. You will also need to know basic math to calculate insurance claim payouts.
If you plan to work as a catastrophe claims adjuster, you should be prepared to travel to areas hit by disasters in order to process claims. This career path can offer a lot of financial earnings but does require a flexible schedule and quick action.
According to the Bureau of Labor Statistics, the median annual salary for claims adjusters, examiners, and investigators was $66,790. This was higher than the median salary for all occupations in May 2019, which was $39,810.
The highest earners worked for the government, with a median salary of $73,470. This was followed by those working for direct insurance company carriers (other than life, heath, and medical carriers), earning a median annual salary of $66,690.
If you want to work as a catastrophe claims adjuster in an area frequently affected by natural disasters, such as the Gulf Coast, you will likely have higher earnings potential and employment. For independent insurance adjusters that work on commission rather than salary, the high demand for claims adjusters in these areas can result in a lot of business.
You do not need a four-year degree to become licensed as an insurance adjuster. However, you will need to complete your education requirements or pass your state’s exam.
One of the prerequisites that satisfies the education requirement for many states is completing a minimum number of semester hours of college level insurance-related coursework. If you are working on an associate’s or bachelor’s degree, consider taking courses that will work toward your state’s insurance adjuster license requirements.
Information on this page has been gathered by a multitude of sources and was most recently updated on September 2020.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state’s authority on insurance.
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