A public adjuster works on a contingency basis, i.e., the balance will not be paid in full until the claim is fully settled.
There are two types of Public Adjusters: Public adjusters who represent the policyholders (insured); and Public adjusters who represent the policyholders in disputes with insurers. When an claim is adjudicated, the Public Adjusters generally represent the policyholders. To be licensed, a Public Adjuster must be at least 18 years of age. A Public Adjuster must be an American Certified Public Accounting final degree holder or higher.
A Public Adjuster who is a “Certified Public Accountant” (CPA) or “CPA-Qualified” is eligible for licensing.
How to Become a Public Adjuster
You can apply for licensure to become a Public Adjuster by filing the form with the Department of Financial Services (DFS) and paying the $200 application fee. You do not need to be a lawyer or a certified public accountant. Applying by mail does not qualify you for licensing, but you may be able to request the form by email or fax. The deadline for filing is 30 days after the date of filing with DFS. The Department of Financial Services website has additional information about filing a Public Adjuster’s Application. You do not need to pay the filing fee when you file your application. However, the Department will require you to pay the special examination fee. The fee schedule is available on the website.
Once you receive the Department of Financial Services Licensing Application Package, which includes a copy of the law, forms, and instructions, you will be able to fill out the forms. The process generally takes 3 business days. Once you have filed your license application, you will be notified by mail or email. The Department of Financial Services will notify you by phone if they need more information or want to schedule a face-to-face meeting.
A Public Adjuster may be licensed by the DFS if they meet the general education requirement and have had significant experience as a Public Adjuster. Each license application is evaluated individually. If the Department of Financial Services finds that you are likely to operate in the insurance industry you will be invited to submit an application for Insurance Act authorization.
You do not need to hire a lawyer, accountant, or an insurance agent to be a Public Adjuster. However, they will need to follow the DFS Rules and Regulations and adhere to the Insurance Act as it relates to insurance licensees.
There is no minimum level of education required to be a Public Adjuster. You do need to hold a valid Class 2 Professional Engineer license issued by the Texas Supreme Court. A professional engineer holds a license that allows them to act as a public adjuster. You also need to hold a valid Class 4 Professional Insurance adjuster license issued by the Insurance Commission of Texas. These licenses are issued after passing the Exam for Insurance Adjusters.
You will need to have sufficient reserves to cover business expenses while a Public Adjuster, including your personal expenses. You will also need a current bond and minimum corporate capital. The Department of Financial Services will provide you with a list of approved financial institutions and how much money they need and whether you have enough available to complete the transaction.
The Department of Financial Services will provide you with a full description of what you need to submit in your application. They will provide you with a list of forms you need to complete, contact person information, and a fee schedule. You will be provided with an online version of the Insurance Act. The Department of Financial Services website is a great source for information about the Insurance Act.
The Department of Financial Services will provide you with a contact person information including a name, title, email address, and phone number. The contact person will be able to respond to any inquiries you may have about applying as a Public Adjuster.
