Missouri Public Adjuster Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount:
- $10,000 for public adjuster businesses or individual public adjusters not employed by a licensed public adjuster business
- $1,000 for public adjuster solicitors and public adjusters employed by a licensed public adjuster (individual or business) that holds a $10,000 surety bond
- Who Needs it: All public adjusters and public adjuster solicitors operating in Missouri
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or fails to account for all settlement/claims funds received
- Who Regulates Public Adjusters in Missouri: The Minnesota Department of Insurance, Financial Institutions, and Professional Regulation
Background
Missouri Statute 325.015 requires all public adjusters and public adjuster solicitors operating in the state to obtain a license from the Department of Insurance, Financial Institutions, and Professional Registration. The Missouri 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 either a $10,000 or $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Missouri Public Adjuster Bond?
Missouri requires public adjusters and public adjuster solicitors 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 Missouri Statute 325.020. Specifically, the bond protects insureds if the public adjuster commits fraud or fails to properly account for all settlement/claims funds received. 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 Missouri Public Adjuster Surety Bond?
BondExchange makes obtaining a Missouri 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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How is the Bond Amount Determined?
Missouri Statute 325.020 dictates that licensed public adjuster businesses and individual public adjusters not employed by a licensed public adjuster business must purchase and maintain a $10,000 surety bond. Public adjuster solicitors and individual public adjusters employed by a licensed public adjuster that holds a $10,000 surety bond need only purchase a $1,000 bond.
Is a Credit Check Required for the Missouri Public Adjuster Bond?
No, a credit check is not required for the Missouri Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in Missouri regardless of their credit history.
How Much Does the Minnesota Public Adjuster Bond Cost?
The Minnesota Public Adjuster bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Missouri Public Adjuster Bond?
Missouri requires public adjusters and public adjuster solicitors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Missouri Statute 325.010, a public adjuster is a person that acts on the behalf of or aids insureds in negotiating the settlement for claims of fire or allied lines of insurance policies.
Exemptions to this definition include:
- Persons adjusting claims for other types of casualty insurance
- Licensed attorneys
- Agents and employees of insurers
- Insurance brokers acting as adjusters for clients without additional compensation
Additionally, a public adjuster solicitor is defined as an employee of a licensed public adjuster that works to secure contracts with insureds and/or acts for or with a public adjuster in making settlements for claims.
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 Missouri?
Public adjusters in Missouri must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes and application form for details on the process.
License Period – All Missouri Public Adjuster and Public Adjuster Solicitor Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Pass the Exam
Public adjusters and public adjuster solicitors must pass a state exam before submitting a license application. The exam is administered through Pearson Vue and public adjusters can register for it online here.
Step 2 – Purchase a Surety Bond
Public adjusters must purchase and maintain a surety bond (limits outlined above).
Step 3 – Complete the Application
Public adjusters and public adjuster solicitors should email their completed applications to [email protected] or mail them to the following address:
Missouri Department of Commerce and Insurance
P.O. Box 4001
Jefferson City, MO 65102
Public adjusters and solicitors must complete the application in its entirety and pay a $100 fee.
How do Public Adjusters in Missouri Renew Their Licenses?
Public adjusters and solicitors should email their completed renewal applications to [email protected] or mail them to the following address:
Missouri Department of Commerce and Insurance
P.O. Box 4001
Jefferson City, MO 65102
Additionally, public adjusters and solicitors must pay a $50 fee when renewing their applications. All Missouri Public Adjuster and Public Adjuster Solicitor Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Public Adjusters in Missouri?
Missouri does not require public adjusters and solicitors to purchase any form of liability insurance as a prerequisite to obtaining a license. Public adjusters and solicitors must purchase and maintain a surety bond (limits outlined above).
How do Missouri Public Adjusters File Their Bonds?
Public adjusters in Missouri should email their completed bond forms, including the power of attorney, to [email protected] or mail them to the following address:
Missouri Department of Commerce and Insurance
P.O. Box 4001
Jefferson City, MO 65102
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
- Bond amount
- Date the bond is signed
What Can Missouri Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Missouri 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
- Properly account for all settlement/claims funds received
What Other Insurance Products Can Agents Offer Public Adjusters in Missouri?
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 Missouri Public Adjusters?
Agents can obtain a full list of all Missouri 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.