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California Insurance Adjuster ($2,000) Bond
Before receiving a license to work as an independent insurance adjuster in California, persons are required under Section 14050 of Division 5 Chapter 1 Article 4 of the Insurance Code to post a California Insurance Adjuster Bond in the amount of $2,000. When applying for a license to work as an independent adjuster, you will need to submit state form 31A-14, which is formally known as the Bond of Insurance Adjuster.
The California Insurance Adjuster Bond form provides particular protection for any person who has been damaged as a direct result of the intentional, malicious, or negligent actions of an independent adjuster.
Before obtaining a license to work as a public insurance adjuster in California, persons are required under Section 15033 of Insurance Code Division 5 Chapter 2 Article 4 to post a surety bond in the amount of $20,000. Form 94A of the California Department of Insurance is formally known as the Bond of Public Insurance Adjuster, but it is more commonly referred to as the California Public Adjuster Bond.
When adjusting claims for fire and associated coverages, burglary, flood, property claims (both real and personal), and loss of income, licensed insurance adjusters in California are explicitly required to do business in a loyal and honest manner. This is one of the specific requirements of the California Insurance Adjuster Bond.
The surety bond guarantees that the insurance assessor will comply in every respect with the requirements outlined in sections 14050 and 14051 of the California Insurance Code. The proprietor is also required to maintain a trustworthy and honorable business behavior in order to qualify for the security bond. An action can be brought on this bond by any person who has been wounded as a result of the intentional, malevolent, or unlawful act of the pledged proprietor in order to collect financial damages that have been accumulated.
There are two distinct categories of insurance adjusters that can be found in the state of California:
- Public adjusters
- Commercial adjusters
In order to obtain a license to work as an insurance adjuster in the state of California, applicants must first obtain a California Insurance Adjuster Bond from the California Producer Licensing Bureau.
Purpose
If you want to become a licensed independent adjuster in California, you need to submit a surety bond form 31A-14. If you want to become a licensed public adjuster in California, you need to file form 94A. When you operate as an insurance adjuster in the state of California and you file your California Insurance Adjuster Bond, you are agreeing to comply with the requirements of the California Insurance Code.
In the event that you fail to comply, your surety business will pay genuine claims to those who have been damaged up to the entire amount of your bond, and you will be responsible for repaying them.
Qualifications/Requirements
To become a licensed insurance adjuster or public adjuster in the state of California, you will need to complete the following procedures:
- At a minimum, you must be 18 years old.
- Complete the application for your individual adjuster license or for the adjuster license required for your corporate organization.
- Buy a public adjuster surety bond in the amount of $20,000 or an independent adjuster surety bond in the amount of $2,000.
- If relevant, please include an application for a certificate to be issued to a branch office.
- Please provide your fingerprints and a picture that is 2×2 inches.
- Successfully complete the test for the license.
- Pay any and all fees that are necessary.
- You will need to fill out an application for authorization and a sample contract form.
Keep in mind: Mailing in your California Insurance Adjuster Bond application paperwork and fees is required by the California Department of Insurance (CDI).
Bond Amount
The majority of the time, an Insurance Adjuster Bond in the state of California may be acquired for a set amount and do not need a credit check.
- A public insurance adjuster bond in the amount of $20,000 may be obtained for a total premium of $200.
- A private insurance adjuster bond in the amount of $2,000 may be obtained for only $100.