North Carolina Public Adjuster Bond: A Comprehensive Guide
April 27, 2022
This guide provides information for insurance agents to help their customers obtain a North Carolina Public Adjuster bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $20,000
- Who Needs it: All public adjusters operating in North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the public adjuster violates licensing law
- Who Regulates Public Adjusters in North Carolina: The North Carolina Department of Insurance
North Carolina statute 58-33A-10 requires all public adjusters operating in the state to obtain a license with the Department of Insurance. The North Carolina legislature enacted the licensing requirement to ensure that adjusters engage in ethical 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 North Carolina Public Adjuster Bond?
North Carolina requires public adjusters to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the adjuster fails to abide by the regulations outlined in North Carolina Statute 58-33A-50. Specifically, the bond protects the public if the adjuster engages in any acts of fraud or misrepresentation. In short, the bond is a type of insurance that protects the public if the adjuster violates licensing law.
How Can an Insurance Agent Obtain a North Carolina Public Adjuster Surety Bond?
BondExchange makes obtaining a North Carolina Public Adjuster bond easy. Simply log in to your account and use our keyword search to find the “adjuster” bond in our database. Don’t have a login? Enroll 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 North Carolina Public Adjuster Bond?
No, a credit check is not required for the North Carolina Public Adjuster bond. Because the bond is considered relatively low risk, the same low rate is offered to all public adjusters in North Carolina regardless of their credit history.
How Much Does the North Carolina Public Adjuster Bond Cost?
The North Carolina Public Adjuster bond costs just $100 per year.
Who is Required to Purchase the Bond?
North Carolina requires public adjusters to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase North Carolina Statute 58-33A-5, a public adjuster is a person that helps insureds file claims against policies covering their real or personal property and negotiates with carriers so the insureds receive the highest possible payouts.
How do Public Adjusters Apply for a License in North Carolina?
Public adjusters in North Carolina must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the NIPR’s licensing page for details on the process.
License Period – All North Carolina Public Adjuster Licenses expire on March 31 of each year and must be renewed before the expiration date
Step 1 – Complete the Application
All North Carolina Public Adjuster License applications must be completed online through the NIPR. Public adjusters must complete the application in its entirety and pay a $207 fee.
The NIPR will send the public adjuster a fingerprint form and instructions on how to fill it out. A completed form must be signed by a law enforcement officer and submitted by fax, email, or mail to the NC Licensing Office of Pearson VUE.
Step 2 – Pass the Exam
After submitting their license application, public adjusters will receive an email containing instructions on how to register for the required licensure exam, which is administered by Pearson VUE. Unlike insurance agents, public adjusters do not need to complete any type of prelicensing education to become licensed in North Carolina.
Step 3 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $20,000 surety bond
How Do North Carolina Public Adjusters Renew Their Licenses?
Public adjusters in North Carolina can renew their business licenses, and submit their $109 renewal fees, online through the NIPR. All North Carolina Public Adjuster Licenses expire on March 31 of each year and must be renewed before the expiration date. Additionally, public adjusters must complete 24 hours of continuing education every two years.
What are the Insurance Requirements for Public Adjusters in North Carolina?
North Carolina does not require public adjusters to purchase any form of liability insurance as a prerequisite to obtaining a business license. Public adjusters must purchase and maintain a $20,000 surety bond.
How Do North Carolina Public Adjusters File Their Bonds?
Public adjusters should submit their completed bond forms, including the power of attorney, to the following address:
NC Department of Insurance
1201 Mail Service Center
Raleigh NC 27699-1201
The surety bond requires signatures from both the surety company that issues the bond and from the public adjuster. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Date the bond is signed
What Can North Carolina Public Adjusters Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, public adjusters in North Carolina must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud or misrepresentation
- Do not breach any contracts made with consumers
What Other Insurance Products Can Agents Offer Public Adjusters in North Carolina?
North Carolina does not require public adjusters to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, some public adjusters may obtain this insurance anyway. 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 North Carolina Public Adjuster Customers?
North Carolina unfortunately does not provide a database of active public adjusters in the state. We suggest contacting the Department of Insurance directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.