Wednesday, August 17, 2022
UncategorizedWhat Is An Adjuster License? And Why It Has Become Important

What Is An Adjuster License? And Why It Has Become Important

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Photo by Charles Forerunner on Unsplash
Photo by Charles Forerunner on Unsplash
  • In the U.S, the average employee age for insurance adjusters is 43 years. 
  • The U.S. insurance adjuster workforce exceeded 7500 persons in 2021
  • Insurance adjusters are paid an average annual salary of approximately  $45,000
  • Insurance adjusters are much more likely to work at private companies than in public ones

The National Association of Insurance Commissioners (NAIC) is responsible for providing the standard regulatory framework in the U.S’s insurance licensing industry. It has been created (and governed) by the chief insurance regulators from the 50 distinct U.S states, the five U.S. territories, and the District of Columbia. 

Through the NAIC, the insurance industry has established certain specific standards and ‘’conscionable practices’’ of conduct, which have been tailor made as a result of coordinated regulatory oversight and prolific industry peer review. The staff at NAIC represent the collective views of state regulators holistically in a domestic context (as well as internationally).

Adjuster Licenses Requirements

To be a successful adjuster, you have to not only complete certain legal prerequisites (such as attain an adjuster license depending on your state), but you will also need to stay ‘’on top’’ of your game by continuing to educate yourself in the sphere of insurance law post certification, particularly in relation to any additional certification amendments or renewals that you may need to make in the future.

Even though adjuster licenses are not always required, they indubitably remain an essential part of the trade and they continue to serve as an overt example of an adjuster’s commitment to his profession. 

If you are looking to become an insurance adjuster, you should start off by checking the requirements of your home state. As of 2021, 34 out of the 50 U.S. states require an adjuster license; these can vary significantly in relation to the procedural costs involved and the timespan that they require, so doing your research beforehand is always highly recommended.

Certain states, like New York, Georgia, and Florida require individuals to officially pass an examination before they can obtain a license. Individuals that live in a state that does not require such a test should look into obtaining a designated home state licence- allowing them to practice in states outside of their home without having to acquire additional certifications (California, Hawaii, and New York still require tests). 

The most popular of these is the Texas dhs adjuster license, this is because of the location’s high weather activity and reciprocity. It should be noted that despite the state’s reciprocity, applicants will still need to apply for a permanent adjuster licence before they are allowed to work as an insurance adjuster. 

Reciprocity will just ensure that they do not need to undergo any additional examinations- allowing them to submit an application directly to the relevant state’s department. For example, if you have obtained a Texas dhs adjuster license, you would be able to apply for your license in Georgia without needing to register for your adjuster exam (which you would have already completed). 

The next step to consider once you have officially obtained your licenses is what kind of claims (and consequently what lines of authority) you want to work in. 

This is important, as there are a plethora of lines of authority and license classes that you will be able to add to your adjuster license, which will then dictate the types of claims that you will be legally allowed to oversee. 

You may also want to consider getting an All-Lines or General Lines adjuster license- particularly if you are interested in working in a variety of different lines of authority. Obviously, if you are interested in specialising in only one area of claims, this would be highly unnecessary.  

What Makes a Good Insurance Claims Adjuster?

When you start working as an insurance adjuster, you will see that most of your deployments will be assigned a stack of claims; you will need to download these preemptively and contact all of them to set up appointment dates as soon as possible.

This makes time management an essential characteristic of being an adjuster, as logistics is a major consideration that you will need to keep in mind. Your clients’ time will be extremely valuable, and so setting a precedent of being coherent and responsive from very early on will likely go a long way in gaining peoples’ trust and proliferating your client base. 

Being sympathetic to your customers’ concerns is equally crucial. Doing your best to relate to their needs and specificities will likely mean that you will act appropriately, and maintain a direct and constant line of communication. This is important, as you will be dealing with a variety of different persons in different stages of panic, and so good ‘’people skills’’ are undoubtedly a fundamental element of the job. 

You should also remember your main objective in any claim situation, which is to restore an insured person’s assets to a pre-loss condition. Quite often, this isn’t easily quantifiable or discernible, and this means that you will need to be able to exercise a significant degree of personal judgement, common sense, and experience in each claim. Never underestimate peoples’ comprehension of insurance policies, or their desire to get large settlements. 

Being able to adequately understand and estimate the software that your insurance company uses will also be vital in your success. This can only be done through significant practice, policy evaluation, and fundamental industry-related knowledge, so make sure you do not stress yourself out in the start. 

Conclusion

Ultimately, becoming licensed is the first crucial step for an adjuster- regardless of whether your state demands it or not. 

Having said that, licensing remains a very small part of becoming a successful insurance adjuster as a whole, and aspiring adjusters should keep in mind that- as the adjusting industry is highly dynamic and involves a prolific number of  changes, it is extremely important to always stay committed and deployable by ensuring that your required licenses and expertise is up to date and desirable. 

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