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These surety bonds are general for all states.
Learn more about public adjuster bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Public adjusters are independent insurance adjusters that policyholders can hire to help them settle insurance claims. Some states require these professionals to be licensed and bonded in order to operate a business in the state. A public adjuster bond is a type of license and permit bond guaranteeing that the public adjuster will abide by all applicable state rules and regulations.
The purpose of the bond is to uphold the standards of the industry and protect clients against financial loss due to the actions of a public adjuster. This helps maintain consumer confidence in the profession.
Anyone applying for licensure as a public adjuster in a state requiring bonding must purchase a public adjuster bond. In order to maintain an active license, the bond must remain in force and be renewed when your license is renewed.
The state agency that licenses public insurance adjusters is the obligee requiring the bond, the public adjuster is the principal, and the company that underwrites and issues the bond is the surety.
The provides financial protection for the adjuster’s clients. If the adjuster commits an infraction of the state’s insurance rules and regulations, such as charging an unauthorized fee, the customer can file a claim against the bond. The surety will investigate the claim and determine its legitimacy.
While the surety will pay all claims it deems valid, the adjuster is responsible for reimbursing the surety for the amount of the claim. This serves as a financial incentive for adjusters to carry out their duties in complete compliance with state rules and regulations.
The state licensing body determines the required amount of all public adjuster bonds issued in the state. That’s one piece of the premium equation. The other piece is the annual premium rate the surety establishes for a particular applicant. The premium rate is established based on the applicant’s personal credit history and business financials.
An applicant with good credit typically will pay between 1% and 3% of the total bond amount as the annual premium. Applicants with credit problems may still be able to get bonded, but they will pay a higher premium rate.
Use our convenient online system to apply for a public adjuster surety bond today.
