“What will this year’s hurricane season look like?”

Some years, we have to wait till the end of the summer to find out but, my oh my! 2020 doesn’t appear to be one of those years. We are just a few weeks into hurricane season and, already, we’ve had multiple named storms in the Atlantic. Cristobal, in early June, became the third named storm of the 2020 season. It’s the earliest a third named storm has ever formed.

Heightened early activity combined with warming Atlantic ocean temperatures has lead experts to almost unanimously predict the 2020 hurricane season to be above average at best, to disastrous at worse.

It is also hard to annually predict how the adjusting industry is gearing up for the season so we sat down with our friends at Pilot to get their take on the need for new adjusters. The bottom line? A very busy spring brought tornadoes, some flooding, and hail – as it usually does. Combine those claims with the daily claims load and the result is Pilot already utilizing most of their entire roster.

So, with most adjusters currently deployed, what does that mean heading into what experts are saying will be a busy hurricane season? It means that the need for new adjusters could be as high as it’s been in recent memory. It means…opportunity!

Having your license in hand and ready when a hurricane hits is always our recommendation. After all, why would employers wait on you to get a license when they could send a licensed adjuster out today? But this year, in particular, there seems to already be an increase in the need for good adjusters.

So if you’re serious about becoming an adjuster, set yourself up for success by preparing today. We have several great resources to get you going.

Hurricane Season Adjuster Resources

• Hurricane Season Resource Center
• Ready for the Storm blog article
• Free Live Q&A Webinar on Claims Adjusting
• Xactimate Training and Why You Need It

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These courses, developed in partnership with a top insurance company, were created to teach the practical knowledge and estimating skills adjusters use while in the field working insurance claims. The discounted bundle includes courses that review different components and materials, as well as how to estimate damages to these systems and structures:

• Estimating Cabinets, Countertops, & Trim: Components of a residential kitchen, cabinets & countertops, materials, quality, & terminology
• Estimating Commercial Damage: Roofing, framing, exterior finishes, storefront windows & glass, plumbing, electrical, flooring, & fire-rates systems of small to mid-market commercial structures
• Estimating a Home’s Internal Structures: HVAC systems, electrical & plumbing systems, attics, and insulation
• Estimating Foundations, Framing, Windows, & Doors: Basic concepts in foundations and framing, windows and doors, materials, how to calculate damages, and tips on how to talk to contractors
• Estimating Interior Walls & Floors: Interior wall finishes, drywall, paint, plaster, different flooring materials, and shower tiles
• Estimating Mitigation & Remediation: Basics of estimating claims involving water, mold, smoke, hazardous material mitigation and remediation, water extraction, mold testing, equipment, smoke and fire cleanup, and pack-out and storage costs
• Estimating Roofs & Exterior Walls: Types of residential building roofs, siding, and veneers, identifying styles and materials, installing and repairing roofs, exterior wall finishes, and masonry veneers

In 2020, 97% of all homeowners insurance claims were property damage claims. Whether those involved fire, flood, or other perils, an insurance adjuster needs to understand a property’s basics before they can estimate any damages for the claim.

Who Should Take These Courses

We’re often asked, “Ok, I got my adjuster license, but what’s next? How do I actually do the job? What can I do to make myself stand out to employers?”

Our Estimating Property Damage package takes insurance claims training to the next level, giving adjusters the ability to correctly identify construction materials and building components so they can write accurate damage assessments in Xactimate.

If you’re a new or relatively inexperienced insurance claims adjuster who is planning on working property claims and you’re familiar with Xactimate, these courses are perfect for you. We do highly recommend you have a working knowledge of Xactimate or take our Tactical Xactimate Training before moving on to the property damage courses. You will be working in the software on simulated claims, so it’s vital you understand and can operate Xactimate.

Knowing your way around construction materials and building basics is vital if you want to write claims efficiently and accurately. These courses will give you the knowledge and skills to walk into a property damage claim settlement confidently.

You can purchase these courses individually and some are approved for CE credit in certain states. However, we recommend the package since it will give you the most complete skill set and save you money. If you have questions about these courses or need help deciding what training you need, get in touch with us. We’re here to help.

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We are thrilled to announce the launch of our Florida 6-20 Certified Adjuster Course in Spanish. The original course has helped thousands of people obtain their Florida insurance claims adjuster license over the past 15 years.

Like the English version, the course will include the Florida adjuster exam so students won’t need to purchase any additional courses or exams. Simply complete the pre-licensing training and pass the included exam and you’re ready to apply for your Florida insurance adjuster license.

The Florida Certified Adjuster course also works for those who live in a non-licensing state and want to get a Designated Home State (DHS) license.

Bi-lingual insurance adjusters play an increasingly important role in the insurance industry. We’re excited to offer a course that will help increase the number of claims adjusters ready and willing to help a large group of policyholders.

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Retiring Talent Opens the Door

According to Property & Casualty 360, approximately 50% of the current workforce will be entering retirement by 2028. This mass retirement will open up thousands of jobs in all sectors of insurance. That means Millennials, Gen Z, and others looking for a new career have an almost unprecedented opportunity to join the insurance industry.

The job openings expected to hit the industry by 2028 range from entry-level to the C-Suite as an entire generation moves into retirement. These positions will require various levels of skills and experience. Sources cited computer and math literacy, communication, customer service, analytical, organizational, and problem-solving skills as highly desired.

Potential future insurance job openings include insurance claims investigators, loss control consultants, brokers, actuaries, customer service representatives, adjusters, regulators, processing clerks, claims examiners, and junior and senior underwriters. The wide range of these positions gives people of all backgrounds and experience levels an avenue to enter this dynamic industry. This is exciting news for those (Millennial or not) interested in a new career that offers growth, stability, and great compensation. 

While we have seen some carriers laying off over the past few years, a recent Labor Market Study found that only 10% of insurers are planning to cut or lay off employees in the next 12 months, while others reported these goals:

• 72% of insurance companies expect to grow their revenue in 2024.
• 63% of carriers reported expected increases in hiring.
• 65% of property and casualty insurers plan to boost staff numbers.
• 56% of life and health insurance carriers plan to expand.

Attracting New Talent to the Insurance Industry

One of the biggest challenges for employers is the younger generations’ lack of interest in insurance careers. For example, Gen Z will make up 75% of the workforce by 2025, but according to The Pew Research Center, only 4% are interested in careers in insurance. To put it very unscientifically, that is a whole lotta jobs, and not many folks who want to fill them.

Insurers are beginning to understand that they will need to ‘sweeten the pot’ to attract the talent the industry will need in the coming years. Many are revisiting their compensation packages, benefits, and work flexibility to entice new entrants. Mentorship programs and educational initiatives are also being emphasized to guide aspiring professionals through their career trajectories.

Perhaps one of the biggest, but most important challenges to overcome in attracting new talent, is getting the word out on the benefits of a career in insurance. Insurance is a stable industry, even during a stagnant or declining economy. People will always need protection from risks. In fact, we are insuring more today than we ever have.

Employment in the insurance industry also provides more job security than many other career fields, such as the volatile tech or construction industries. That stability provides a safety net for employees so they can build a nest egg, invest, or pay off debts sooner than their peers.

Insurance also offers a variety of positions not seen in many industries. No matter what you are interested in: marketing, customer service, IT, finance, artificial intelligence, education and training, forensics, cybersecurity, climatology, and data analytics, there is a job for you in the insurance field.

Starting an Insurance Career

The ways to enter the insurance industry are as varied as the fields we listed above. But if you’re interested in an insurance career, becoming a licensed insurance claims adjuster is a great way to get started. (We are, admittedly, a little biased.)

You don’t need a college degree, years of training and education, or tens of thousands of dollars to become an insurance adjuster. You need to get your home state license, and you can begin applying for positions. You can read more about the process in How to Become an Insurance Adjuster in 5 Steps or check out the AdjusterPro blog for more articles and information.

Once licensed and working as an adjuster, you’ll learn about the insurance business and likely figure out where your skills lie. Adjusters can work in the field after a disaster, from a traditional office, or even from home. Some work directly for the insurance carrier, and others are independent contractors.

The insurance industry is on the cusp of a very transformative period. The changes will offer ample opportunities for those seeking stable and rewarding jobs in a thriving business arena. We hope you’ll consider the insurance industry if you’re looking for a new career. Opportunities are opening up every day, and companies are ready to hire talented and dedicated individuals to help fill the gaps left by a generation of talent.

If you have questions, we can help.

REFERENCES

Property & Casualty 360

Forbes

Insurance Business Magazine

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Recently, I’ve gotten quite a few text messages from independent adjusters and other claims-related professionals asking, in a panic, “Are IA’s going away? Will I be able to find work? What is going on?! What is the future of independent insurance adjusters?!”

I wanted to address the topic, the current employment situation, and what you can do to best set yourself up for success, no matter what tomorrow brings.

This all came to a head when one of the biggest insurance carriers in the U.S., let’s call them Top Insurance, recently indicated that they won’t be using independent adjusters moving forward. To be clear, I don’t work for Top Insurance. I am certainly not in their boardroom or a part of their executive meetings, but it is clear they are lowering their dependency on independent adjusters.

Couple that with the rumor that they are hiring and yes, it would appear that Top Insurance is hoping to move forward keeping things in-house.

First things first: This is the 4th time in my thirteen years in the industry that I’ve seen Top Insurance make a switch like this. While the fluctuation or change in tactics can sound scary, rest assured: it’s normal, healthy, and not the first time.

Top Insurance is doing whatever is best for Top Insurance. Most large corporations do. My advice to you is that you should do the same. 

Industry Changes

Insurance claims is a steady business. Claims happen year-round, in every location, regardless of the economy or budgets or forecasts. However, the ways in which carriers deal with claims can fluctuate depending on a lot of different factors.

For the past few years, Top Insurance has employed a large number of IA’s with desk work. Many of those positions were entry-level IA opportunities, which was great for those looking to break into independent adjusting. New adjusters gained experience and were often able to grow their salary while learning valuable skills. 

On the flip side, these positions can be a grind. Long hours, six days a week, mostly sitting at a desk. It wasn’t what a lot of independent adjusters envisioned when they joined the industry and certainly not what they were hoping for long-term. 

Top Insurance lowering their dependency on independent adjusting firms and their contractors will have an effect on the industry and the employment landscape. The companies that built their business on mostly Top Insurance contracts will struggle the most. But that doesn’t mean you, as an independent adjuster, have to struggle as well. 

Surviving the Shift

Just to reiterate, I’ve seen shifts like these before. The relationship between carriers and IA firms will continue to change and evolve based on current industry needs. So how, as an insurance adjuster, can you best navigate these shifts?

Diversify your skill set!

In other words, learn how to handle different types of claims in a wide variety of states.

Excel at handling FIELD and DESK claims

Top Insurance didn’t use independent adjusters for most of their field work. They have an in-house team to handle those. But that does mean that Top’s desk jobs will become much more sought-after. If you can handle both types of claims, you’ll be a much more attractive candidate for both staff and independent jobs.

Learn to handle multiple types of claims

If you know how to do property claims, learn how to handle auto claims. If you know auto, learn heavy equipment or property claims. When a company or firm can assign you whatever type of claim comes in, you become incredibly valuable.

Be flexible

Only focusing on one type of work, or refusing to assist with anything that isn’t your ‘preferred’ contract, is the fastest way to work yourself out of a job. If you are used to getting deployments, focus on breaking into daily. If you are used to getting daily claims, you probably aren’t as affected by this shift, but explore the idea of deployments this upcoming cat season.

Whether you are an independent or a staff adjuster, being versatile enough to handle anything thrown your way establishes trust with your employer. And being trusted is the key to surviving in this industry.

Independent adjusters will continue to be needed. But I recommend learning how to handle different types of claims and diversifying your skill set so that you are prepared today, and in the future, for whatever changes come our way.

AdjusterPro has insurance adjuster licensing courses for every state, as well as courses to help you elevate and expand your skills.

• State Licensing Courses
• Xactimate
• Customer Service
• Career Success Course
• California and New York Licensing Courses (These states do not offer reciprocal licenses – you must pass the states’ exams to adjust claims.)

If you need help diversifying your skill set, IA Path can help. Mentorships are available for:

• Level 1: Auto Collision Damage CCC One Software (Daily Auto Field Claims)
• Level 2: Auto Flood & Hail Damage (Catastrophic Auto Field & Desk Claims)
• Level 3: Heavy Equipment, RV, & Semi Trucks

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The Nevada Division of Insurance (Division) has been informed of an email phishing scam targeting licensed insurance producers and agents in Nevada. The Division has received several phone calls from licensed individuals reporting that they have received a fraudulent email claiming that their license may be revoked if they do not pay an amendment fee via a payment link embedded in the email.

The email is being sent from INSURANCE LICENSING with the subject line: Nevada Division of Insurance AMENDMENT FEE.

**THIS EMAIL IS NOT FROM THE NEVADA DIVISION OF INSURANCE. PLEASE DO NOT CLICK ON ANY LINKS AND DELETE THE EMAIL IMMEDIATELY. **

All of Nevada’s official Division of Insurance Licensing emails are sent from nevada.licensing@doi.nv.gov or renewal.desk@doi.nv.gov. Emails received from any other addresses claiming to be the Division of Insurance should be considered fraudulent and immediately deleted.

Below is an example of what the phishing scam email looks like:

If you have received this email and have further questions or concerns, please contact Nevada’s Licensing Section directly at (775) 687-0700 and press option two or email nevada.licensing@doi.nv.gov.

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D.C. is one of 16 states that do not license insurance adjusters. This means you can legally adjust claims in your state without a license, but only your state. Being unlicensed presents some major challenges if you’re serious about a career as a claims adjuster.

First, many employers will only deploy licensed adjusters. After all, they have clients (insurance carriers) all over the country so they need adjusters who can help wherever there is a need. Second, most adjusters want out-of-state licenses that will enable them to work throughout the entire country: hurricanes in the Gulf, hail in the midwest, snow and ice in the north. This is how to truly maximize your income potential as an adjuster.

Designated Home State (DHS) License

So how do you get a license in a state that doesn’t license? The Designated Home State, or DHS, license. A DHS license allows you to declare a licensing state as your home state. You will go through that state’s licensing process, testing, and compliance regulations and their license will act as your resident, or home state license.

Once you hold a DHS license, you’ll be able to use it to get reciprocal license privileges so you are more employable and can adjust claims in other states. Both are vital if you want to have a long-lived and successful career as a claims adjuster.

Which Adjuster DHS License is Best?

In today’s claims industry, many of the licensing states offer a DHS license. And you really can’t go wrong with any of them. If you’re a resident of a nonlicensing state, the priority is simply to get a DHS license. But we do have a favorite and a runner-up: Florida and Texas.

One of the main reasons we like these options is the ability to take your pre-licensing course and state exam (or exam exemption) online. So no matter where you live, it’s a breeze to complete the licensing process conveniently from your own home, on your own time.

Florida 70-20 Nonresident Designated Home State License

Ultimately, obtaining Florida’s 70-20 license is our top recommendation for Ohio residents looking to become a licensed insurance adjuster. Here’s why:

• Florida offers the quickest turnaround time after you submit your documentation.
• A Florida DHS license is good for 4 years. That’s twice as long as most other DHS options.
• Florida requires fingerprinting which some states do not. Getting it done for your DHS license means you won’t have to worry about doing it later when you try to apply for reciprocal licenses in states that require it.
• The Florida 70-20 license is reciprocal with most licensing states and Puerto Rico.

Detailed information on the Florida 70-20 Designated Home State License is available on the Florida DFS Website.

AdjusterPro’s Florida Certified Adjuster Designation

If you’re ready to move forward with your DHS license, AdjusterPro has you covered. Our Florida Certified Adjuster Designation is 100% online and satisfies all state requirements. Simply complete the 40-hr pre-licensing course and pass the included exam and you are qualified to apply for your Florida 70-20 DHS license. No additional coursework or testing required.

You can find detailed licensing instructions and compliance information in our Florida DHS How-To Guide.

While Florida’s DHS is our top recommendation, our adjuster course and package also satisfy the DHS licensing requirements for Texas as well. See how to obtain that license in our Texas DHS Guide.

Obtaining your home state license is the first step to a career as an insurance adjuster. But if you’re looking to become an insurance adjuster in a nonlicensing state like D.C., the Florida 70-20 DHS License is the next best thing.

Once you have your DHS adjuster license, you can (and should) apply for reciprocal licenses so you can work in more states, making you more attractive to potential employers.

No matter where you’re at in your insurance adjusting career, we can help.

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Our Designation consists of a 100% online, 40-hour course with a 100-question, proctored exam at the end. The designation course and process comply with the requirements for state-specific adjuster licensing. While the designation is new for Arizona, we’ve licensed thousands of adjusters with this exam exemption since it was first offered in Florida in 2008, per Florida Statute 626.221 (j).

What is The Certified Adjuster Designation?

The Certified Adjuster Designation (CA) is a highly sought-after insurance industry certification that offers exam exemptions to Arizona and Florida state adjuster exams. Choosing to get licensed through our certification allows prospective adjusters to complete their requirements and take an exam online, skipping the step of scheduling and taking a test in person through an outside vendor.

This process also significantly speeds up the process for individuals seeking licensure and includes membership in the Association of Certified Adjusters.

Course and Compliance Information

• 100% online; including exam
• Offers AZ & FL adjuster exam exemptions, eliminating the need for a live state exam.
• Priced at $299
  • includes unlimited exam attempts
  • corporate pricing discounts are available
• Includes membership to the Association of Certified Adjusters
• Once you complete your Certified Adjuster training and exam, you are granted membership into the Association of Certified Adjusters and can apply for your Arizona adjuster license. To keep your adjuster license in good standing, you must maintain and renew your association membership.
• To renew your membership in the Association of Certified Adjusters, you must complete 24 hours of continuing education every two years and submit an application to us for renewal.
  • CE hours completed for another state, such as those needed for a reciprocal license, can count towards your Certified Adjuster requirements.
• To apply, Arizona applicants complete a paper application and include their Designation Certificate of Completion.

Additional states are considering this type of legislation as a way to simplify and speed up the licensing process. We’re monitoring these developments and looking forward to the opportunity to add more states to our Certified Adjuster Designation list.

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Let’s review some of the most common titles and terms regarding claims adjusters:

Inside Adjusters vs Field Adjusters

Inside adjusters, sometimes known as desk adjusters, work in an actual office. It has doors and walls, computers and desks, and probably a kitchenette. We’re not sure if they all have a Dwight Schrute but it’s likely some also have one of those. These adjusters handle claims on a computer using information and images they receive from the policyholder.

Field adjusters, on the other hand, go out into the field (occasionally, but not usually, an actual field) to handle all aspects of the claim. They will talk with the policyholder, walk the space, take pictures, inspect the damages, etc. They frequently work from their vehicles, spending the day going from claim to claim, often performing tasks on a laptop or cell phone.

Staff vs Independent vs Public Adjusters

Staff adjusters work for insurance carriers like Allstate or Progressive. The key here is that they work for a single insurance carrier, handling claims only for that insurer. Staff adjusters are usually hired as full-time employees that get the standard employee benefits such as health insurance, paid holiday and vacation time, and sick leave.

Independent adjusters (IA’s) work a bit differently. They also adjust claims on behalf of the insurer, but not directly as an employee of that insurance company. Typically, independent adjusters are contracted by a third-party claims-handling company, or “Independent Adjusting Firm.” These adjusters are employed by the IA Firm but operate as representatives of the insurance company.

For example: Let’s say ABC Insurance Company has an influx of claims from a hurricane – too many for its staff adjusters to handle. So ABC outsources the claims to an Independent Adjusting Firm. The firm then contracts with 10 of their independent adjusters who will go handle the claims as representatives of ABC.

Perhaps the biggest difference is that independent adjusters handle claims on behalf of many different insurers, often at the same time.

Public adjusters are self-employed and do not work for an IA firm or a carrier. They are hired by the policyholder, usually when the policyholder believes they have received an unfair or incorrect settlement offer from the insurance company. Public adjusters must sell their services to the public and are usually paid a percentage of the settlement fee.

CAT vs Daily

Catastrophe (or CAT if you’re cool) claims are those that arise out of some large-scale event, typically a natural disaster like a flood, hurricane, or hailstorm. CAT adjusters are usually ‘deployed’ out to a disaster zone to work those claims. When a CAT adjuster is deployed to the hard-hit area, it can be for weeks or sometimes even months. They can be staff or independent adjusters but in either case, they are “on-call” and when an event happens, they often have to leave with little notice and only get their assignments/claims once on site.

Handling CAT claims can be an extremely tough job with long hours working under brutal conditions, but this is where adjusters can make a lot of money. So while it’s difficult, the opportunity to make in a few months what you normally would in a year while helping people is exactly what most CAT adjusters love about it.

Daily claims, on the other hand, are claims arising from losses that happen every day in every community throughout the country but are not associated with a catastrophe. It can be anything from a grease fire to a toilet flood to a burglary.

Adjuster Licensing

For the most part, to do any job classifications above you just need to obtain an adjuster license. There isn’t a special license to handle one or the other with the exception of public adjusters. Public adjusters do often need additional licensing and education, which is the case in Florida.

There are certain certifications to consider getting if you’re interested in becoming an independent adjuster. While staff adjusters often get training and certifications through their insurance carrier employer, as an independent adjuster, that responsibility falls to you individually.

The State Farm Certification, Construction 101, and Xactimate Training are great examples of above-and-beyond training that will make you a more attractive candidate to IA Firms than those without.

Additional Claims-Related Jobs

Adjusters aren’t the only people who work on or deal with insurance claims. Here are a few other positions you might see referenced: 

Appraisers estimate the cost or value of an insured item. In some states, you need a separate appraiser license, but in others, an adjuster license is enough to be an appraiser.

Claims Examiners review claims after they are submitted to ensure claimants and adjusters followed proper guidelines. They may help adjusters with complicated claims or when, for example, a natural disaster occurs and the volume of claims increases.

Insurance Investigators look deeper into insurance claims when the carrier suspects fraudulent or criminal activity may be involved.

Arbitrator is an independent person or a body officially appointed to settle a dispute.

Umpire is a person chosen to decide on a controversial issue or question that has been submitted to arbitration but that hasn’t been resolved because the arbitrators cannot agree.

Examiners, investigators, arbitrators, and umpires are all positions that require experience working in claims and an ability to mediate tough situations between adversarial parties.

Insurance Producers, Agents, & Brokers sell, solicit, or negotiate insurance policies You can learn more about how to become an agent and the difference in titles in the All-Lines Training blog article: What is the Difference Between an Insurance Agent VS. Broker VS. Producer.

Most of us have interacted with insurance on some level, usually through either an agent or an adjuster. But there is a lot more depth in the industry than those two careers. Many adjusters find that they enjoy a certain part of the claims process, such as the inspection or mediating a problem, and enter one of these more specialized areas.

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However, the concept of reciprocity is often misunderstood or, at the very least, misrepresented. For an adjuster, knowing the true ins and outs of state licensing reciprocity can save significant time, money, and aggravation. So what is reciprocity? And what does an insurance adjuster need to know about it?

What Reciprocity Isn’t

First, it’s important to understand what adjuster reciprocity doesn’t mean. There is a common misconception that once you have obtained a state’s license – say Texas for example – you can waltz into any other state, at any time, and begin working claims. This is not the case. Sure, on occasion, a state’s insurance commissioner will declare a ‘state of emergency’ and approve licensed adjusters from other states to come in and assist. But this actually has less to do with reciprocity and more to do with meeting the demands of a catastrophe.

So it’s important to recognize that emergency licensing and reciprocal licensing are two different animals.

What Reciprocity Is

Adjuster license reciprocity refers to a mutual agreement between states that says an adjuster holding a license in his or her home state can successfully apply for a license in another state without having to take that state’s exam or pre-licensing course. This is important to adjusters because meeting other states’ educational and testing requirements involves a significant investment of time and money. Reciprocity bypasses those requirements. But to obtain a reciprocal license, the adjuster still needs to apply for the other state’s license and pay any required fees.

Are Some states better for Reciprocity?

Another common misconception suggests that some states enjoy more reciprocity than others (e.g. Texas is reciprocal with 32 states!). That may have been true once upon a time, but in today’s industry, reciprocity is predicated not on what state you have but on whether it’s your home state.

In this sense, the term reciprocity is somewhat ill-cast. It’s not true reciprocity in the sense that there is a quid pro quo, or a mutual agreement of exchange between two specific parties. Rather, it’s a more general, nation-wide acceptance that says ‘if you have your home state license, you can get our license too.’ Again, it doesn’t have anything to do with which state, so long as that state is your home state.

Again, it doesn’t have anything to do with which state you have your adjuster license in, so long as that state is your home state.

For example, let’s say you live in and have an adjuster license in Oklahoma. You are applying for a North Carolina license. North Carolina will grant you a North Caroline nonresident license but not because of some previously agreed upon arrangement with Oklahoma. They grant you the license because Oklahoma is your state of residence and you have its license.

A few humbugs

Today, most states have gotten on board with offering adjusters licensed in their home state reciprocity but there are a few caveats to the standard reciprocity rules. Some states do not offer any kind of reciprocal agreement or observance. California, Hawaii, and New York all require adjusters to take their specific state adjuster exam to adjust claims in their state. No exceptions and no reciprocal licenses are available.

The lack of reciprocity offered by the three states above has created a bit of a domino effect. Some states, like Florida and Delaware, put a regulation in place that in essence says, “If your state doesn’t offer our adjusters a reciprocal license, then we won’t give your adjusters a license in our state either.”

So according to this rule, New York adjusters may not obtain a reciprocal license in Florida because Florida adjusters can’t get one in New York. Likewise, other states such as Oklahoma have specifically written in that adjusters from California, New York, and Hawaii cannot obtain a reciprocal license in their state. But the exceptions are few and far between and are mostly rooted around the three non-reciprocal states.

The primary pitfall adjusters encounter with reciprocity is when they attempt to skip their own state’s licensing requirements and obtain another state’s license first.

Unfortunately, this happens all too often. For example, residents of Oklahoma or Arkansas who wish to become adjusters get the impression that “a Texas license is better” so they skip getting their home state license and jump right to obtaining Texas’. Or residents of smaller northern states might bypass their state license and opt to get one where more claims, and therefore more employment opportunities, are available.

And unfortunately, things don’t work like this any longer. Still, based on hearsay or poor advice, some people try it and are obviously disappointed with the results. They may be rejected when it comes time to get their own states’ license or they’ll be denied reciprocal licenses down the road.

The bottom line? Get your home state license first.

What if your home state doesn’t license?

In the event that your home state does not require an adjuster license, you will want to obtain another state’s license and then designate it as your home state – now commonly referred to as a designated home state or DHS license. This is a specific license type and not every state offers a DHS license. When it comes to getting your adjuster license, you’ll want to make sure you choose a course/state with a DHS option and then make sure you apply for the correct license type once you pass your exam.

The benefit is that once you have your DHS license, you now have a “home state” and can apply for reciprocal licenses. If you don’t obtain a home state license, you will have to go through each state’s licensing and testing process in order to legally adjust claims there.

Florida and Texas are two of the most popular DHS options and you really can’t go wrong with either of them. However, we strongly recommend pursuing the Florida 70-20 DHS license. We have found the Florida Dept. of Insurance to be extremely responsive and easy to work with. Most importantly for many would-be adjusters, Florida works quickly and can often turn around a license within the week. If you want to read more about the pros and cons of the DHS licensing options, visit our Which DHS License is Best? article.

Your License Type Matters Too

Getting an All-Lines license will also allow you to obtain the most reciprocal licenses available. States will only approve a reciprocal license for the same lines of authority you are already approved for via your home state (or DHS) license.

So, for example, if you have a Workers’ Comp license in your home state, you’ll only qualify to get Workers’ Comp reciprocal licenses as well. You won’t qualify for a P&C and/or All-Lines reciprocal license.

It’s also important to remember that not all states offer the same types of licenses. Florida doesn’t offer a P&C license for example. Many don’t offer a single LOA like workers’ comp or crop. And if the state you’re applying in doesn’t offer that lower license type, you are denied a reciprocal license completely.

You can avoid the confusion and potential denials by obtaining the All-Lines license, which covers the most lines of authority and, therefore, offers the most reciprocity.

Remember: reciprocity isn’t a magic wand that grants licenses automatically once you have obtained your home state. You still need to go through the application process and pay the licensing fees in order to get the other states’ licenses. Most reciprocal license applications can conveniently and quickly be submitted through NIPR or SIRCON once you have your home state license number.

If you are beginning your insurance adjuster career, be sure to check your state’s licensing rules and procedures. When properly understood, reciprocity offers great benefits to adjusters looking to maximize their earning potential. Having more state licenses means being able to work more claims, plain and simple.

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