New York Public Adjuster Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a New York Public Adjuster bond.
At a Glance:
- Average Cost: $50 per year or $5 per month
- Bond Amount: $1,000
- Who Needs it: All public adjusters operating in New York
- 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 York: The New York Department of Financial Services
Background
New York Statute 2108 requires all public adjusters operating in the state to obtain a license from the Department of Financial Services. The New York 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 $1,000 surety bond to be eligible for licensure.
What Is the Purpose of the New York Public Adjuster Bond?
New York 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 York Statute 2108. 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 York Public Adjuster Surety Bond?
BondExchange makes obtaining a New York 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 York Public Adjuster Bond?
No, a credit check is not required for the New York Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in New York regardless of their credit history.
How Much Does the New York Public Adjuster Bond Cost?
The New York Public Adjuster bond costs either $50 per year or $5 per month.
Who Is Required to Purchase the New York Public Adjuster Bond?
New York requires public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase New York Statute 2101, a public adjuster is a person that acts on behalf of or aids insureds in negotiating the settlement of insurance claims.
Exemptions to this definition include:
- Employees or authorized representatives of insurers acting in the adjustment of claims
- Licensed insurance brokers acting as an adjuster for their clients
- Licensed attorneys fulfilling their normal business operations
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 York?
Public adjusters in New York must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page for details on the process.
License Period – All New York Public Adjuster Licenses expire on December 31st of even-numbered years (2024, 2026, etc.)
Step 1 – Complete the Pre-Licensure Education
Public adjusters must complete 40 hours of pre-licensure education conducted by an approved course provider.
Applicants with at least one year of experience working in sales, underwriting, or claims within the insurance industry are exempt from the pre-licensure education requirement and must submit a Statement of Employer with their license application.
Step 2 – Pass the Exam
New York requires public adjusters to pass a state exam within two years of completing their pre-licensure education. Adjusters that do not pass the exam within this time must retake their pre-licensure course.
Step 3 – Get Fingerprinted
All license applicants must get printed before being issued a license. Details on the fingerprinting process can be found here.
Step 4 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $1,000 surety bond.
Step 5 – Obtain Certificates of Character
All applicants are required to obtain five Certificates of Character from community members they have known for at least five years that are able to, under the penalty of perjury, attest to the applicant’s character. The Certificates of Character should be uploaded with the adjuster’s license application.
Step 6 – Complete the Application
New York Public Adjuster License applications should be submitted online through the DFS portal. Applicants wishing to apply via a paper application should email [email protected] to request one.
How do New York Public Adjusters Renew Their Licenses?
New York public adjusters should submit their completed renewal applications, including a $100 fee, online through the DFS portal.
What are the Insurance Requirements for Public Adjusters in New York?
New York 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 $1,000 surety bond.
How do New York Public Adjusters File Their Bonds?
Public adjusters in New York 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 and address of the individual buying the bond
- Surety company’s name
- Date the bond is signed
- Adjuster’s license term
What Can New York Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in New York 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 York?
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 York Public Adjusters?
New York provides a public database to search for active public adjusters in the state. However, agents must know the adjuster’s license number or name to receive any information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.