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Virginia Public Adjuster Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain a Virginia Public Adjuster bond
At a Glance:
- Lowest Cost: $375 per year or $39 per month
- Bond Amount: $50,000
- Who Needs It: All public adjusters operating in Virginia
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or engages in unfair business practices
- Who Regulates Public Adjusters in Virginia: The Virginia State Corporation Commission
Background
Virginia Statutes 38.2-1845.2 and 38.2-1845.5 require public adjusters operating in the state to obtain a license from the State Corporation Commission. The Virginia 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 Virginia Public Adjuster Bond?
Virginia 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 Virginia Statute 38.2-1845.1 et seq. 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 licensing law.
How Can an Insurance Agent Obtain a Virginia Public Adjuster Surety Bond?
BondExchange makes obtaining a Virginia 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.
Not an agent? Then let us pair you with one!
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Is a Credit Check Required for the Virginia Public Adjuster Bond?
Surety companies will run a credit check on the public adjuster to determine eligibility and pricing for the Virginia Public Adjuster bond. Adjusters with excellent credit and work experience can expect to receive the best rates. Adjusters 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 adjuster’s credit.
How Much Does the Virginia Public Adjuster Bond Cost?
The Virginia Public Adjuster surety 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
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| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $375 | $38 |
| 625 – 719 | $500 | $50 |
| 600 – 624 | $1,250 | $125 |
| 575 – 599 | $1,500 | $150 |
| 550 – 574 | $2,500 | $250 |
| 500 – 549 | $3,500 | $350 |
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Who is Required to Purchase the Virginia Public Adjuster Bond?
Virginia requires public adjusters to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Virginia Statute 38.2-1845.1, a public adjuster is a person that acts on behalf of or aids insureds in negotiating the settlement of first-party insurance claims.
Exemptions to this definition include:
- Persons assisting insureds with liability claims for personal injury or property damage, other third-party claims, or uninsured or underinsured bodily injury liability claims
- Licensed insurance agents assisting insureds with claims on policies they sold, solicited or negotiated
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 Virginia?
Public adjusters in Virginia must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes and the state’s licensing page for details on the process.
License Period – The Virginia Public Adjuster License is valid for two years and expires on the last day of the adjuster’s birth month. Adjusters born in even-numbered years will have their licenses expire during even-numbered years, and adjusters born in odd-numbered years will have their licenses expire in odd-numbered years.
Step 1 – Pass the Exam
Virginia requires public adjusters to pass a state exam before receiving their license. Adjusters can register for the exam online here.
Non-resident public adjusters are exempt from this requirement.
Step 2 – Purchase a Surety Bond
All public adjusters operating in Virginia must purchase and maintain a $50,000 surety bond.
Step 3 – Complete the Application
After passing the exam and purchasing a bond, public adjusters should submit a completed license application, including a $250 application fee, online through either the NIPR or Sircon.
Public adjusters must also obtain a Virginia Criminal History Record Report from the Virginia State Police and submit it to the State Corporation Commission. Additionally, public adjusters licensed as a business entity must obtain a Certificate of Authority (or its equivalent) from the Office of the Clerk of the State Corporation Commission within 90 days of being issued a license.
How do Virginia Public Adjusters Renew Their Licenses?
Public adjusters should submit their completed renewal applications online through either the NIPR or Sircon. Resident public adjusters must complete 24 hours of continuing education, 3 of which must be devoted to ethics, each renewal period, and can find a list of available courses online here.
What are the Insurance Requirements for Public Adjusters in Virginia?
Virginia does not require public adjusters to purchase any form of liability insurance as a prerequisite to obtaining a license. All public adjusters operating in Virginia must purchase and maintain a $50,000 surety bond.
How do Virginia Public Adjusters File Their Bonds?
Public adjusters in Virginia 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 and address of the individual buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
What Can Virginia Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Virginia 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
For example, if a public adjuster does not provide a client with all claims funds owed to them, the client could file a claim against the adjuster’s bond to recoup their losses.
What Other Insurance Products Can Agents Offer Public Adjusters in Virginia?
Most reputable public adjusters will purchase 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 Virginia Public Adjusters?
Virginia conveniently provides a public database 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.
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