Hawaii Public Adjuster Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All public adjusters operating in Hawaii
- Purpose: To protect insureds from financial harm if the public adjuster fails to pay them all funds owed
- Who Regulates Public Adjusters in Hawaii: The Hawaii Insurance Division
Background
Hawaii Statute 431:9-201 requires all public adjusters operating in the state to obtain a license from the Department of Commerce and Consumer Affair’s Insurance Division. The Hawaii legislature enacted the licensing requirement to ensure that public adjusters do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, public adjusters must purchase and maintain a $10,000 surety bond to be eligible for licensure.
What is the Purpose of the Hawaii Public Adjuster Bond?
Hawaii requires public adjusters to purchase a surety bond as part of the application process to obtain a license. The bond ensures that the public will receive compensation for financial harm if the public adjuster fails to abide by the regulations outlined in Hawaii Statute 431:9-223. Specifically, the bond protects the public if the public adjuster fails to pay all funds owed to insureds. In short, the bond is a type of insurance that protects insureds if the public adjuster violates the terms of their license.
How Can an Insurance Agent Obtain a Hawaii Public Adjuster Surety Bond?
BondExchange makes obtaining a Hawaii Public Adjuster bond easy. Simply log in to your account and use our keyword search to find the “public adjuster” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Hawaii Public Adjuster Bond?
No, a credit check is not required for the Hawaii Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in Hawaii regardless of their credit history.
How Much Does the Hawaii Public Adjuster Bond Cost?
The Hawaii Public Adjuster bond costs just $100 per year.
Who is Required to Purchase the Hawaii Public Adjuster Bond?
Hawaii requires resident public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase Hawaii Statute 431:9-105, a public adjuster is a person that acts on the behalf of or aids insureds in negotiating the settlement of first-party insurance claims.
Exemptions to this definition include:
- Licensed attorneys performing their normal duties
- Adjusters of marine losses
- Salaried employees of insurers adjusting corporations
- Individuals that act for insurers administering their own insurance contracts
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Public Adjusters Become Licensed in Hawaii?
Public adjusters in Hawaii must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page and candidate handbook for details on the process.
License Period – Hawaii Public Adjuster Licenses are valid from anywhere between 18-29 months, based on the discretion of the Division of Insurance
Step 1 – Pass the Exam
Public adjusters in Hawaii must pass a state exam before applying for licensure. The cost for taking the exam is $75. Public adjusters can register for the exam online here.
Step 2 – Get Fingerprinted
Public adjusters are required to get fingerprinted and can schedule an appointment to do so here.
Step 3 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $10,000 surety bond.
Step 4 – Complete the Application
All Hawaii Public Adjuster License applications should be submitted online here. Public adjusters must complete the application in its entirety, and pay a $164 application fee.
How do Public Adjusters in Hawaii Renew Their Licenses?
Public adjusters in Hawaii can renew their licenses online here. Before renewing their licenses, public adjusters are required to retake and pass the state licensure exam. Hawaii Public Adjuster Licenses are valid from anywhere between 18-29 months, based on the discretion of the Division of Insurance.
What are the Insurance Requirements for Public Adjusters in Hawaii?
Hawaii does not require public adjusters to purchase any form of liability insurance as a prerequisite to obtaining a license. Public adjusters must purchase and maintain a $10,000 surety bond.
How do Hawaii Public Adjusters File Their Bonds?
Public adjusters in Hawaii should submit their completed bond forms, including the power of attorney, electronically here when submitting their license applications. The surety bond requires signatures from the surety company and the public adjuster. The surety company should include the following information on the bond form:
- Legal name and address of the individual buying the bond
- Surety company’s name
- Date the bond is signed
What Can Hawaii Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Hawaii must ensure that they properly account for and pay all funds owed to insureds.
What Other Insurance Products Can Agents Offer Public Adjusters in Hawaii?
Most reputable public adjusters will purchase business liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Hawaii Public Adjusters?
Agents can obtain a full list of all Hawaii public adjusters through the NAIC. However, agents may need to pay a fee to do so. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.