New Mexico Public Adjuster Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a New Mexico Public Adjuster bond
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All public adjusters operating in New Mexico
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or engages in unfair business practices
- Who Regulates Public Adjusters in New Mexico: The New Mexico Division of Insurance
New Mexico Statute 59A-13-3 requires all public adjusters operating in the state to obtain a license from the Division of Insurance. The New Mexico 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 New Mexico Public Adjuster Bond?
New Mexico 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 New Mexico Statute 59A-13-5. 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 New Mexico Public Adjuster Surety Bond?
BondExchange makes obtaining a New Mexico 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 New Mexico Public Adjuster Bond?
No, a credit check is not required for the New Mexico Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in New Mexico regardless of their credit history.
How Much Does the New Mexico Public Adjuster Bond Cost?
The New Mexico Public Adjuster bond costs either $100 per year or $10 per month.
Who is Required to Purchase the New Mexico Public Adjuster Bond?
New Mexico requires public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase New Mexico Statute 59A-13-2, a public adjuster is a person that acts on behalf of or aids insureds in negotiating the settlement of first-party insurance claims.
Exemptions to this definition include:
- Licensed attorneys that do not advertise themselves as public adjusters
- Licensed agents, general agents of authorized insurers, or an employee of an agent or general agent that adjust claims or losses solely for policies issued by the insurer
- Agents or employees of life and health insurers that adjust claims or losses under the insurer’s policies or contracts to administer policies or benefits of that type
- Claims agents or investigators employed by self-insured persons
- Persons employed for the sole purpose of gathering facts around a potential loss or to provide technical assistance to a licensed public adjuster
- Licensed health care providers or their employees that file health claims on behalf of patients
- Persons that settle subrogation claims between insurers
- Persons employed to investigate fraudulent claims but do not adjust losses or determine claim payments
- Employees of insurers that receive loss reports from insureds and who advise insureds regarding the claims process or available coverages but do not act as adjusters on 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 New Mexico?
Public adjusters in New Mexico must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page and the licensing statutes for details on the process.
License Period – The New Mexico Public Adjuster License is valid for two years and expires on the last day of the adjuster’s birth month
Step 1 – Complete the Exam
New Mexico requires public adjusters to pass a state exam before receiving their license. The exam is administered by Prometric and public adjusters can register for it online here. Nonresident public adjusters licensed in a state with an exam requirement are exempt from this requirement.
Step 2 – Get Fingerprinted
License applicants must get fingerprinted and pass a background check and can find the instruction on how to do so online here. There is a $59 fee that public adjusters must pay when completing this requirement.
Step 3 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $10,000 surety bond.
Step 4 – Complete the Application
All New Mexico Public Adjuster applications should be submitted online through the NIPR. Public adjusters must complete the application in its entirety and pay a $30 fee.
How do New Mexico Public Adjusters Renew Their Licenses?
Prior to their licenses’ expiration dates, the Division of Insurance will send public adjusters instructions on how to renew their licenses. Public adjusters must complete 24 hours of continuing education each renewal period. The New Mexico Public Adjuster License is valid for two years and expires on the last day of the adjuster’s birth month.
What are the Insurance Requirements for Public Adjusters in New Mexico?
New Mexico 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 New Mexico Public Adjusters File Their Bonds?
Public adjusters in New Mexico should submit their completed bond forms, including the power of attorney, electronically 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, NPN, and address of the individual buying the bond
- Surety company’s name and address
- Date the bond goes into effect
- Date the bond is signed
What Can New Mexico Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in New Mexico 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 New Mexico?
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 New Mexico Public Adjusters?
Agents can obtain a full list of all New Mexcio 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.