Kentucky Public Adjuster Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $200 per year or $20 per month
- Bond Amount: $20,000
- Who Needs it: All public adjusters operating in Kentucky
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or engages in unfair business practices
- Who Regulates Public Adjusters in Kentucky: The Kentucky Department of Insurance
Kentucky Statute 304.9-430 requires all public adjusters operating in the state to obtain a license from the Department of Insurance. The Kentucky 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 $20,000 surety bond to be eligible for licensure.
What is the Purpose of the Kentucky Public Adjuster Bond?
Kentucky requires public adjusters to purchase a surety bond as part of the application process to obtain a license. The bond ensures that insureds will receive compensation for financial harm if the public adjuster fails to abide by the regulations outlined in Kentucky Statute 304.9-430. Specifically, the bond protects insureds if the public adjuster commits fraud or engages in unfair business practices. 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 Kentucky Public Adjuster Surety Bond?
BondExchange makes obtaining a Kentucky 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.
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Is a Credit Check Required for the Kentucky Public Adjuster Bond?
No, a credit check is not required for the Kentucky Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in Kentucky regardless of their credit history.
How Much Does the Kentucky Public Adjuster Bond Cost?
The Kentucky Public Adjuster bond costs just $200 per year or $20 per month.
Who is Required to Purchase the Kentucky Public Adjuster Bond?
Kentucky requires public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase Kentucky Statute 304.9-020, 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 acting within their professional capacity
- Persons that negotiate or settle claims for life or health insurance policies or annuity contracts
- Persons employed solely to obtain facts surrounding a loss or provide technical assistance to a public adjuster
- Licensed health care providers and their employees who prepare or file health claim forms on behalf of patients
- Employees or agents of insurers that adjust claims relating to food spoilage with respect to residential property insurance in which the amount of coverage is limited to $1,000
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 Kentucky?
Public adjusters in Kentucky must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Kentucky Public Adjuster Licenses are perpetual and do not expire unless they are surrendered or suspended. However, public adjusters must renew their licenses every two years by the last date of their birth month.
Step 1 – Meet the Prerequisites
To be eligible for licensure as a public adjuster in Kentucky, applicants must be:
- At least 18 years old
- Eligible to designate Kentucky as their home state
- Trustworthy, reliable, and of good reputation
- Have not committed any acts outlined in Kentucky Statute 304.9-440
Step 2 – Complete the Application
All Kentucky Public Adjuster License applications should be submitted online here. Public adjusters must complete the application in its entirety, and pay a $100 fee. Public adjusters must request a criminal background check when applying for a license and can do so by submitting an electronic request via the AOCFastCheck portal.
Step 3 – Pass the Exam
After their application is processed, public adjusters must register for and pass a state licensing exam. Public adjusters can register for the exam online here.
Step 4 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $20,000 surety bond.
How do Public Adjusters in Kentucky Renew Their Licenses?
Public adjusters should submit their completed renewal applications, including the required $50 fee, online here. Public adjusters must complete at least 24 hours of continuing education each renewal period, with at least 3 hours devoted to ethics. All Kentucky Public Adjuster Licenses are perpetual and do not expire unless they are surrendered or suspended. However, public adjusters must renew their licenses every two years by the last date of their birth month.
What are the Insurance Requirements for Public Adjusters in Kentucky?
Kentucky 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 $20,000 surety bond.
How do Kentucky Public Adjusters File Their Bonds?
Public adjusters in Kentucky should mail their completed bond forms, including the power of attorney, to the Department of Insurance at the following address:
Department of Insurance
Agent Licensing Division
P. O. Box 517
Frankfort, KY 40602
The surety bond requires signatures from the surety company, the public adjuster, and a commissioned notary public. The surety company should include the following information on the bond form:
- Surety company’s name, FEIN, and address
- Legal name, SSN, and address of the individual buying the bond
- Bond amount
- Date the bond is signed
What Can Kentucky Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Kentucky must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not commit fraud
- Do not engage in unfair business practices
What Other Insurance Products Can Agents Offer Public Adjusters in Kentucky?
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 Kentucky Public Adjusters?
Agents can search for licensed public adjusters in Kentucky online here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.