NAIC Adjuster Licensing Guideline Revisions Define Staff Roles and Home State

The proposed update to the National Association of Insurance Commissioners’ (NAIC) independent adjuster licensing guideline centers on two definitions with practical effects for licensing: who qualifies as a staff adjuster, and where an adjuster’s home state is located. The revisions also address overlapping licenses and outline how states might handle examinations and reciprocal licensing.

The NAIC Adjuster Licensing Working Group adopted the revisions on July 15. The document is open for comments through Sept. 11, including submissions from NAIC members, state insurance regulators and consumer representatives. After that period, the Producer Licensing (D) Task Force is expected to review the submissions and continue discussing the guideline. The task force is targeting final adoption during an Oct. 15 conference call.

The guideline sets out qualifications and procedures for licensing independent adjusters, along with duties and restrictions tied to that work. It is a guideline rather than a model act, so states can adapt its approach to fit their existing licensing systems. NAIC told Repairer Driven News that the original guideline was adopted in 2008 and had not been revised since.

Clarifying who counts as a staff adjuster

The revisions propose defining a “staff (company) adjuster” as a person employed by an insurer or one of its affiliates who adjusts insured losses solely for that company or other companies under common control or ownership. The draft adds a note explaining that the meaning of “employee” can vary by context, but generally depends on whether the employer controls both the work and the methods used to complete it.

That definition gives states a starting point for distinguishing company adjusters from independent adjusters. The distinction matters because states may set different licensing requirements for each group. A separate drafting note says states can adapt the guideline to cover staff adjuster licensing where their rules require it.

For states that do not require staff adjuster licenses, the draft raises another option: a staff adjuster who lives in the state could be allowed to obtain a resident independent adjuster license. The stated aim is to help that adjuster qualify for reciprocal licensing in other states. The proposal leaves the choice with each state, so the treatment of staff adjusters could still vary across jurisdictions.

Home state and overlapping licenses

The proposed home state definition would account for a physical place of business or the location where an applicant or licensee spends most of their time conducting insurance business. That wording puts emphasis on where the person actually works, alongside the physical business location. For adjusters whose work spans multiple places, the revised definition could help establish which state serves as the licensing base.

The draft also seeks to reduce duplicate licensing requirements for people working through related roles or entities. Its drafting note says that someone licensed as an independent adjuster, third-party administrator or similar business entity should not need a separate independent adjuster license, provided the claims they handle do not involve life, health, annuity or disability insurance.

That exception is specific to the types of claims being adjusted. The proposal does not describe a blanket exemption for every person or business with another license. States considering the language will need to assess how it fits their current requirements and how they classify the work performed.

Exams and implementation timing

Additional notes address states that have adopted the Producer Licensing Model Act. Those states may not need to add separate written examination, non-resident licensing and reporting-of-actions requirements for independent adjusters. The document suggests they could instead amend their relevant insurance producer statutes to include independent adjusters.

For examinations, states may also choose to set limits by regulation on how often an applicant can apply, alongside other pre-licensing requirements. The draft therefore points to a framework that states can tailor, rather than one uniform process for every jurisdiction.

No effective date has been set for the revisions. The guideline recommends allowing at least six months to one year for implementation, giving states time to provide notice of changes and explain any related fees and procedures. That window will matter for adjusters and businesses planning around licensing requirements, particularly if states take different approaches to staff licenses, reciprocity or duplicate credentials. The next milestones are the Sept. 11 comment deadline and the task force’s targeted Oct. 15 adoption discussion.

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