Louisiana Public Adjuster Bond: A Comprehensive Guide
At a Glance:
- Lowest Cost: $375 per year or $38 per month, based on the applicant’s credit
- Bond Amount: $50,000
- Who Needs it: All public adjusters operating in Louisiana
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud, engages in unfair business practices, or fails to pay them all funds owed
- Who Regulates Public Adjusters in Louisiana: The Louisiana Department of Insurance
Background
Louisiana Statute 22:1693 requires all public adjusters operating in the state to obtain a license from the Department of Insurance. The Louisiana 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 $50,000 surety bond to be eligible for licensure.
What is the Purpose of the Louisiana Public Adjuster Bond?
Louisiana 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 Louisiana Statute 22:1701. Specifically, the bond protects insureds if the public adjuster commits fraud, engages in unfair business practices, or fails to pay them all funds owed. 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 Louisiana Public Adjuster Surety Bond?
BondExchange makes obtaining a Louisiana 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 Louisiana Public Adjuster Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Louisiana Public Adjuster bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Louisiana Public Adjuster Bond Cost?
The Louisiana Public Adjuster bond can cost anywhere between $375 to $3,500 per year or $38 to $350 per month. Insurance companies determine the rate based on a number of factors, including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $50,000 bond requirement.
$50,000 Public Adjuster Bond Cost
| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 700+ | $375 | $38 |
| 620 – 699 | $500 | $50 |
| 600 – 619 | $1,250 | $125 |
| 575 – 599 | $1,500 | $150 |
| 550 – 574 | $2,500 | $250 |
| 500 – 549 | $3,500 | $350 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Louisiana Public Adjuster Bond?
Louisiana requires public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase Louisiana Statute 22:1692, a public adjuster is a person that assists insureds in settling first-party insurance claims on the insured’s property (not including a motor vehicle).
Exemptions to this definition include:
- Licensed attorneys
- Persons employed solely to obtain facts or provide technical assistance to licensed public adjusters or attorneys
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 Louisiana?
Public adjusters in Louisiana must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page and statutes for details on the process.
License Period – The Louisiana Public Adjuster License is valid for two years and must be renewed before the expiration date. Public adjusters whose licenses end in an even number will expire on the last day of their birth month during even-numbered years, while public adjusters whose licenses end in odd numbers will expire on the last day of their birth month in odd-numbered years.
Step 1 – Complete the Application
All Louisiana Public Adjuster License applications should be submitted online here. Public adjusters must complete the application in its entirety, and pay a $55 fee.
Step 2 – Pass the Exam
Louisiana requires public adjusters to pass a state exam before receiving their license. The exam is administered through PSI, who will reach out to the public adjuster to schedule their exam after the Department of Insurance processes their application.
Public adjusters are not required to take the exam if they are currently licensed as a public adjuster in a state that requires an exam or have been licensed within the past 12 months. Additionally, public adjusters that have previously been licensed in Louisiana are not required to take the exam if their license has been inactive for 12 months or less.
Step 3 – Get Fingerprinted
Public adjusters must have their fingerprints taken and submitted to the Department of Insurance. The fingerprinting will occur when the public adjuster goes to take their exam. More information on the fingerprinting process can be found here.
Step 4 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $50,000 surety bond
How do Public Adjusters in Louisiana Renew Their Licenses?
Public adjusters should submit their completed renewal applications, including the required $50 fee, through either the state’s Industry Access Portal or through the NIPR. All public adjusters are required to complete 24 hours of continuing education each renewal period, with at least three hours devoted to ethics. The Louisiana Public Adjuster License is valid for two years and must be renewed before the expiration date. Public adjusters whose licenses end in an even number will expire on the last day of their birth month during even-numbered years, while public adjusters whose licenses end in odd numbers will expire on the last day of their birth month in odd-numbered years.
What are the Insurance Requirements for Public Adjusters in Louisiana?
Louisiana 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 $50,000 surety bond.
How do Louisiana Public Adjusters File Their Bonds?
Public adjusters in Louisiana should mail their completed bond forms, including the power of attorney, to the Department of Insurance at the following address:
1702 N. Third Street
P.O. Box 94214
Baton Rouge, LA 70802
The surety bond requires signatures, including witness signatures, from the surety company and the public adjuster. The surety company should include the following information on the bond form:
- County/parish the public adjuster operates in
- Date the bond goes into effect
- Date the bond expires
- Surety company’s name and NAIC number
- Legal name and NAIC number of the individual buying the bond
- Bond amount
What Can Louisiana Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Louisiana 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 Louisiana?
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 Louisiana Public Adjusters?
Louisiana conveniently provides the public with a list of active public adjusters in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
