Advertising yourself as an insurance claims appraiser, soliciting business, or representing yourself to the public as a first-party appraiser are all activities that require a public adjuster's license. A public adjuster is an independent insurance professional that a policyholder can hire to help resolve an insurance claim on their behalf.
Public adjustersnegotiate on behalf of their client, the policyholder, and help them document the damages, understand the legal battles they might face, and get the agreement they need to make repairs. For example, in Colorado, a public adjuster must be at least 18 years old, have completed an application, and be in possession of a license; non-residents must go through a special process.
It is illegal for public adjusters to request employment from a client in connection with any loss that is the subject of an employment contract involving the client and another public adjuster. The bond will be granted in favor of the State and will specifically authorize the Commissioner to recover damages suffered if the licensee is convicted of fraud or unfair practices in connection with the licensee's activity as a public adjuster. Directly or indirectly soliciting business, investigating or adjusting losses, or informing an insured about first-party claims for losses or damages arising from insurance policies that insure real or personal property for another person engaged in the activity of adjusting losses or damages covered by an insurance policy are all activities that require a public adjuster's license. The Commissioner may deny a request or suspend or revoke a public adjuster's license if any person who directly or indirectly owns or controls the licensee, or who has voting power or has voting power or voting powers, 10 percent or more of the licensee's voting securities do not meet the requirements for obtaining the license under this chapter.
It is important to note that your public adjuster will not receive any payment unless you receive the settlement you deserve from the insurance company. One problem with this agreement is that the policyholder chooses the customer, not the public adjuster or the financing company. In the event of a business loss, if a contract is canceled pursuant to this subsection, the public adjuster shall be entitled to reasonable compensation for the actual services provided and the costs incurred between the time the contract was concluded and the time it was canceled. It is important to remember that while a public adjuster can help you with the claim process, they cannot provide you with more money than you are entitled to under your insurance policy.
In addition, in Colorado, public adjusters are not allowed to charge more than 10% of any insurance agreement or product. An appraiser, agent, or employee of an insurance company or group of insurers under common control or ownership who, as a representative of the insurer or group, adjusts losses or damages under policies issued by the insurer or group of insurers are also subject to these regulations. The Commissioner shall treat confidentially records submitted pursuant to this section that contain confidential information, identified in writing as such by the public insurance adjuster. The public adjuster is also subject to sanctions applicable to licensees under chapter 17 of this title.