Texas’ insurance adjuster license has been voted the most desired license in the country. The Texas adjuster license, which is known for its high degree of reciprocity with other state licenses, is often viewed as a panacea for independent adjusters and companies looking for full licensure. What are the true implications of being licensed Texas adjuster? Are the common misconceptions correct? This license has many reciprocal benefits. Companies can make informed licensing decisions about their staff adjusters. Independent adjusters can also save money and have well-informed expectations. Let’s get real and dispel common misconceptions about the most sought-after adjuster license in America.
License Overview
The Texas Department of Insurance (TDI), offers two types of multiline adjuster licenses: one is an all-lines license, and the other is a property and casualty. All-lines permits licensees to handle all types of claims, including residential, commercial and automobile. Only the property and casualty license (P&C), does not allow licensees to work with worker’s compensation cases. These licenses can be used for property adjusters and cat adjusters. The resident status of the license is another distinction in licensure. Both certify their designees to work exactly the same types of claims. However, there are crucial differences in regards to reciprocity which will be discussed further below.
How to get the Texas Adjuster License
You can obtain your Texas adjuster licence, whether it is property and casualty or all-lines, by either passing the Prometric state exam or taking a certified prelicensing class. It is notoriously difficult, and passing the state exam is not guaranteed. Many insurance industry veterans, who rely on their expertise, have failed to pass the state exam due to questions on obscure topics such as farm, ranch, inland, and ocean marine. Prometric must schedule the state exam. Exam study courses can be helpful in preparing. Pre-licensing classes are 40-hour online or classroom courses that can be used as a substitute for the state exam. There are 30 hours of classroom instruction and 10 hours of self study. The total time is 40 hours. The final evaluation for potential adjusters is usually a 150-question exam that is administered at the end.
Pre-licensing courses satisfy all requirements of the Texas Department of Insurance for Texas adjuster license. Students must submit their application to state after passing the state exam and the pre-licensing courses. The average processing time for an application is between 2 and 4 week. For a successful submission, the application might require fingerprinting and a criminal background check. Any adjuster who holds a CPCU/AIC designation may apply immediately for licensure.
Reciprocity, Texas License
It is difficult to understand and accurately represent the reciprocal benefits of the Texas adjuster licence. Common misconceptions state that you can be licensed in 32 states once you have been licensed in Texas as an adjuster. Others believe that the Texas license is reciprocal to every state in the nation or that it is the most reciprocal. These statements are incorrectly applying the principles of reciprocity, and the extent of the license’s influence. Unfortunately, the real answer is somewhat complex. Each state interprets reciprocity differently, so it varies from one state to another. However, it is essential to have a clear understanding of the situation. This will save companies and individuals time and money.
Let’s start with what is reciprocity. The principle that favors, benefits or designations granted by one state to residents of another state should be returned is known as reciprocity. It refers to adjuster licensing. If a state licenses adjusters in Texas, for example, Texas should also do so for Florida-licensed adjusters. This is the fundamental principle. With the notable exception of Nevada, Hawaii and New York, Arizona, most states are reciprocal with all other states that license adjusters.
Non-resident licenses can complicate the matter. Many states, including Kansas, Missouri, Pennsylvania and Ohio, Ohio, Illinois, Colorado, do not require that their adjusters be licensed. A twenty-year-old adjuster in Kansas City might need to be licensed in Georgia in order to work on hurricane claims. There is no reciprocal license with Kansas. This dilemma is often solved by obtaining a Texas non-resident license. It can lead to disappointing results. Georgia, as many other states, requires that you pass the exam if you don’t have a resident license before you can apply for licensure. In order to enjoy reciprocal privileges, adjusters from states that do not require licenses are often punished. States like Georgia, on the other hand, are trying to close any reciprocal loopholes. Georgian residents are trying to become licensed in Georgia by using a Texas adjuster license. However, there are some states (e.g. Alabama doesn’t care if your license is non-resident.
The lesson to be learned is that the matter should be examined on a case by case basis and should consider a) your state of residence b) the licenses you hold and their resident/non-resident status and c) the policies by state of the licenses you wish to obtain. The Texas license does not guarantee reciprocal licensure in all states. The most important consideration and the factor that will most influence the level of reciprocity to be enjoyed is the resident/non-resident factor. Non-resident adjusters will have greater reciprocal privileges than non-residents, regardless of their state.
Additional benefits of the Texas License
The Texas adjuster license has many other benefits. The Texas adjuster license is the most respected and widely accepted license in the independent insurance industry. Texas is home to many adjusting firms that hire IAs to handle claims. This license could be required in certain cases to be employed, regardless of whether you’re a Texas resident.
This license has another advantage: it is easy to get. You can register immediately for online licensing courses or regular classroom licensing courses. The Texas Department of Insurance has a reputation for providing the best education and support for licensure in the state.
Check your state’s adjuster licensing requirements before you start your career as an insurance adjuster. Start your career with the right license!
Daniel Kerr is a consultant and career coach to thousands of insurance claims adjusters. Apart from his work as a catastrophic claim adjuster, Mr. Kerr has been recognized as one of the country’s leading authorities on adjuster licensing.