Mississippi Public Adjuster Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $350 per year
- Bond Amount: $50,000
- Who Needs it: Public adjusters operating in Mississippi
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or engages in unfair business practices
- Who Regulates Public Adjusters in Mississippi: The Mississippi Department of Insurance
Background
Mississippi Statute 83-17-503 requires all public adjusters operating in the state to obtain a license from the Department of Insurance. The Mississippi 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 either a $50,000 surety bond or errors and omissions (E&O) insurance policy to be eligible for licensure.
What is the Purpose of the Mississippi Public Adjuster Bond?
Mississippi requires public adjusters to purchase a surety bond or purchase E&O insurance 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 Title 83 of the Mississippi Code. 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 Mississippi Public Adjuster Surety Bond?
BondExchange makes obtaining a Mississippi 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 Mississippi Public Adjuster Bond?
No, a credit check is not required for the Mississippi Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in Mississippi regardless of their credit history.
How Much Does the Mississippi Public Adjuster Bond Cost?
The Mississippi Public Adjuster bond costs just $350 per year.
Who is Required to Purchase the Mississippi Public Adjuster Bond?
Mississippi requires public adjusters to purchase a surety bond or E&O insurance as a prerequisite to obtaining a professional license. To paraphrase Mississippi Statute 83-17-501, a public adjuster is a person that acts on the behalf of or aids insureds in negotiating the settlement for first-party insurance claims. Licensed attorneys are exempt from this definition.
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 Mississippi?
Public adjusters in Mississippi must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page and application instructions for details on the process.
License Period – The Mississippi Public Adjuster License expires every two years on the last day of the adjuster’s birth month (May 31 for business entities)
Step 1 – Complete the Pre-Licensing Education
Public adjusters must complete at least 20 hours of pre-licensure education and can find a list of approved course providers here. Public adjusters that can demonstrate to the Department of Insurance that they have sufficient experience handling loss claims under insurance contracts are exempt from this requirement.
Step 2 – Pass the Exam
After completing the pre-licensure education, public adjusters must pass a state exam administered through Pearson Vue. Non-resident adjusters must have passed a similar exam in their home state.
Step 3 – Purchase a Surety Bond or Insurance
Public adjusters must purchase and maintain either a $50,000 surety bond or E&O insurance policy.
Step 4 – Complete the Application
Public adjusters can apply for licensure online through Sircon or the NIPR or by mailing a completed application (click here if a business) to the following address:
Mississippi Insurance Department
P.O. Box 79
Jackson, MS 39205
Public adjusters must complete the application in its entirety and pay a $100 fee.
How do Public Adjusters in Mississippi Renew Their Licenses?
Public adjusters can renew their licenses, and pay the required $50 renewal fee, online through either Sircon or the NIPR. Public adjusters must complete 24 hours of continuing education, with at least three hours devoted to ethics, each renewal period. The Mississippi Public Adjuster License expires every two years on the last day of the adjuster’s birth month (May 31 for business entities).
What are the Insurance Requirements for Public Adjusters in Mississippi?
Mississippi requires public adjusters to purchase and maintain either a $50,000 surety bond or E&O insurance policy.
How do Mississippi Public Adjusters File Their Bonds?
Public adjusters in Mississippi can submit their completed bond forms, including the power of attorney, online with their license applications or mail them to the following address:
Mississippi Insurance Department
P.O. Box 79
Jackson, MS 39205
The surety bond requires signatures from the surety company, the public adjuster, and a commissioned notary public. The surety company should include the following information on the bond form:
- Legal name, address, and MID license number of the entity/individual buying the bond
- Surety company’s name, address, and NAIC and MID license number
- Date the bond goes into effect
- Date the bond is signed
What Can Mississippi Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Mississippi 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
How Can Insurance Agents Prospect for Mississippi Public Adjusters?
Mississippi conveniently provides city-by-city lists of licensed public adjusters in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
