How To Become An Insurance Adjuster In Michigan
What Kind Of Insurance Adjuster Will You Be?
There are four main types of insurance adjusters: staff adjuster, independent adjuster, catastrophe adjuster, and public adjuster.
Each of these positions accomplishes essentially the same task: assess the damage to property brought about by some event and make an evaluation of what monetary value the insurance claim should carry.
The big difference between these different types of adjusters is who pays them, and in the case of the public adjuster, who they are advocating for. Staff, independent, and catastrophe adjusters all require the same type of license, while a public adjuster license is a little different in its specifications.
- Staff Adjuster – Works directly for an insurance company
- Independent Adjuster – Works for a third-party company who performs insurance adjuster work and is contracted by an insurance company
- Catastrophe (CAT) Adjuster – An independent adjuster who travels to an area that has been largely affected by an event (usually severe weather) and performs claims adjuster services en masse
- Public Adjuster – Is an advocate for the insurance customer, not the insurance company (requires a different type of license)
This article will cover a standard insurance claims adjuster license (sometimes known as an independent adjuster license), not a public adjuster license.
How To Get Your Insurance Adjuster License In Michigan
Step 1. Adjuster Pre-Exam Education
Preparation for this exam is not something to take lightly, as the average pass rate of insurance exams nationwide is around 55% for first-time test-takers, and even less for any following attempts. We want you to pass your test the first time you take it.
Studying for this exam can take many different forms. The most common way to get prepared is to take an online study course. These courses are generally comprised of video and text with short knowledge quizzes to make sure you have a comprehensive understanding.
A slightly more minimal approach would be to purchase a state-specific study guide. These guides give you all of the facts that you need to pass the exam and maybe a bit less expensive than a course. They are, however, quite long and densely packed books, so be sure you are ready to tackle this task.
You should choose the method that fits best for you. Some people learn best out of a book, while others take in information better through video and short text. Remember, the goal is to pass your exam on the first attempt, so pick your best path forward and study hard.
Step 2. Michigan Insurance Adjuster License Exam
Once you have completed all your coursework, you are now ready to take and pass the Michigan Insurance Adjuster License exam.
This is a proctored test, which means that you will be in a controlled environment with a person watching over you. For people who haven’t tested in a situation like this should be aware of this fact, and work on taming their nerves prior to sitting for the exam. When you arrive at the exam location you must have a photo ID any other documents that the testing facility has asked you to bring.
Michigan offers an Independent Adjuster with Workers’ Compensation line and an Independent Adjuster without Workers’ Compensation line.
- The Independent Adjuster with Workers’ Compensation license exam consists of one hundred (100) questions, and you have two hours (2:00) to complete it.
- The Independent Adjuster without Workers’ Compensation license exam consists of one hundred (100) questions, and you have two hours (2:00) to complete it.
An outline of included subjects for these exams can be found here:
- PSI Michigan Independent Adjuster with Workers’ Compensation
- PSI Michigan Independent Adjuster without Workers’ Compensation
Each attempt of the exam costs $40 and will be paid when you make your reservation.
A total score of 70% or more is required to pass this test. For more information on the scoring of the exam, we will quote the PSI Michigan Department of Insurance and Financial Services Licensing Examination Candidate Information Bulletin:
“Examination Result Reporting
Passing examination results are valid for 12 months from the “pass” date. Your results will be given to you immediately following completion of the examination.
– If you pass, you will receive an examination result report which will indicate “PASS”
– If you do not pass, you will receive a diagnostic report indicating your strengths and weaknesses”
Insurance license tests are intentionally difficult, but not impossible by any means. You should study to the point of comfortability with the information before you attempt the test. Failing the exam isn’t the end of the world, but keep in mind that you will need to pay the fee each time you attempt the test.
You may register to take your exams and find more information on the PSI Michigan Insurance page or by calling (800) 733-9267.
Step 3. Michigan Insurance Adjuster License Application
Once you have completed all your coursework and passed the examination, you are now ready to apply for your license.
The fee for an application is $20.
Apply online with the Michigan Insurance Adjuster License Application.
Step 4. Application Review
Once you have submitted your application and have completed all the other requirements, your license application will be reviewed by the state. This process generally takes about fourteen (14) business days. Depending on the results of your background check, the Department of Insurance may request more information or documentation.
After the review is complete, you will receive an email from NIPR regarding the status of your license.
You’ve done the work, put in the time and effort, and now hold the key to your own success! We’re proud of you. Take five (5) minutes and celebrate.
Michigan Department Of Insurance Contact Information
Department of Insurance and Financial Services
P.O. Box 30220
Lansing, Michigan 48909
Phone: (517) 284-8800
Email: [email protected]
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