Colorado Public Adjuster Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $140 per year or $14 per month
- Bond Amount: $20,000
- Who Needs it: All public adjusters operating in Colorado
- Purpose: To ensure insureds will receive compensation for financial harm if the public adjuster commits fraud or engages in unfair business practices
- Who Regulates Public Adjusters in Colorado: The Colorado Division of Insurance
Background
Colorado Statute 10-2-417 requires all public adjusters operating in the state to obtain a license from the Division of Insurance. The Colorado 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 Colorado Public Adjuster Bond?
Colorado 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 Colorado Statute 10-2-417. Specifically, the bond protects insureds if the public adjuster engages in any acts of fraud or 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 Colorado Public Adjuster Surety Bond?
BondExchange makes obtaining a Colorado 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 Colorado Public Adjuster Bond?
No, a credit check is not required for the Colorado Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in Colorado regardless of their credit history.
How Much Does the Colorado Public Adjuster Bond Cost?
The Colorado Public Adjuster bond costs just $140 per year or $14 per month.
Who is Required to Purchase the Colorado Public Adjuster Bond?
Colorado requires public adjusters to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Colorado Statute 10-2-103, a public adjuster is a person that acts on the 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 Colorado?
Public adjusters in Colorado must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact Pearson Vue at (800) 275-8247 for details on the process.
License Period – All Colorado Public Adjuster Licenses expire every two years on the last day of the adjuster’s birthday month
Step 1 – Pass the Exam
Applicants must pass an exam before applying for a license. To schedule an exam, applicants should create an account with Pearson Vue and follow the online scheduling instructions.
Step 2 – Purchase a Surety Bond
After passing their exam, applicants must purchase and maintain a $20,000 surety bond and submit it with their license application.
Step 3 – Complete the Application
Public adjusters can submit their license applications online through either Sircon or the NIPR.
How do Colorado Public Adjusters Renew Their Licenses?
Public adjusters in Colorado can renew their licenses online through either Sircon or the NIPR. All Colorado Public Adjuster Licenses expire every two years on the last day of the adjuster’s birthday month and must be renewed before the expiration date. Public adjusters must complete 24 hours of continuing education each renewal period.
What are the Insurance Requirements for Public Adjusters in Colorado?
Colorado 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 $20,000 surety bond.
How Do Colorado Public Adjusters File Their Bonds?
Public adjusters 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
What Can Colorado Public Adjusters do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Colorado 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 Colorado?
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 Colorado Public Adjusters?
Colorado conveniently provides a public database of active public adjusters in the state (must search by city). Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
