North Dakota 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 North Dakota
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or engages in unfair business practices
- Who Regulates Public Adjusters in North Dakota: The North Dakota Department of Insurance
Background
North Dakota Statute 26.1-26.8-03 requires all public adjusters operating in the state to obtain a license from the Department of Insurance. The North Dakota 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 North Dakota Public Adjuster Bond?
North Dakota 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 North Dakota Statute 26.1-26.8-11. 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 North Dakota Public Adjuster Surety Bond?
BondExchange makes obtaining a North Dakota 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 North Dakota Public Adjuster Bond?
No, a credit check is not required for the North Dakota Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in North Dakota regardless of their credit history.
How Much Does the North Dakota Public Adjuster Bond Cost?
The North Dakota Public Adjuster bond costs either $200 per year or $20 per month.
Who is Required to Purchase the North Dakota Public Adjuster Bond?
North Dakota requires public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase North Dakota Statute 26.1-26.8-02, a public adjuster is a person that acts on behalf of or aids insureds in negotiating the settlement of first-party insurance 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 North Dakota?
Public adjusters in North Dakota must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page and licensing statutes for details on the process.
License Period – The North Dakota Public Adjuster License is valid for two years and expires and the last day of the adjuster’s birth month for individual licensees or on the date of issuance for licensed public adjuster businesses.
Step 1 – Pass the Exam and get Fingerprinted
North Dakota requires public adjusters to pass a state exam before applying for licensure. The exam is administered by PSI and public adjusters can register for it online here. Public adjusters are not required to take the exam if they are applying for a nonresident license or if they are reapplying for licensure within 12 months of their North Dakota Public Adjuster License being terminated.
Resident public adjusters must get fingerprinted and can do so at their exam appointment.
Step 2 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $20,000 surety bond.
Step 3 – Pass the Exam
All North Dakota Public Adjuster License applications can be completed online through the NIPR. Public adjusters must complete the application in its entirety and pay a $100 application fee.
How do Public Adjusters in North Dakota Renew Their Licenses?
Public adjusters can submit their completed renewal applications, including the required $25 fee, online here. Public adjusters must complete 24 hours of continuing education, with at least 3 hours devoted to ethics, each renewal period.
What are the Insurance Requirements for Public Adjusters in North Dakota?
North Dakota does not require public adjusters to purchase any form of liability insurance as a prerequisite to obtaining a license. Both resident and non-resident public adjusters must purchase and maintain a $20,000 surety bond.
How do North Dakota Public Adjusters File Their Bonds?
Public adjusters in North Dakota 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 of the individual buying the bond
- Surety company’s name and state of incorporation
- Entity requiring the bond
- Bond amount
- License being applied for
- Date the bond goes into effect
- Date the bond is signed
What Can North Dakota Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in North Dakota 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
- Pay all funds owed to insureds
- Do not engage in unfair business practices
What Other Insurance Products Can Agents Offer Public Adjusters in North Dakota?
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 North Dakota Public Adjusters?
Agents can obtain a full list of all North Dakota 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.