Earlier this year, the Texas Department of Insurance began sending notices to insurance companies about adjuster licensing.
The crackdown was based on a section in Statute 4101. Insurance Adjusters, which states:
Sec. 4101.152. REFERRAL BY INSURER. (a) An insurer may not knowingly refer a claim or loss for adjustment in this state to a person purporting to be or acting as an adjuster unless the person holds a license under this chapter.
(b) Before referring a claim or loss for adjustment, an insurer must ascertain from the commissioner whether the person performing the adjustment holds a license under this chapter. Once the insurer has ascertained that the person holds a license, the insurer may refer the claim or loss to the person and may continue to refer claims or losses to the person until the insurer has knowledge or receives information from the commissioner that the person no longer holds a license.
(In the statute definitions section, (5) “Person” means an individual or business entity.)
A business entity can be located in Texas (Texas entity) or out of state (Non-resident entity). The application process requires the usual information, fees and has specific fingerprinting third-party requirements. https://www.tdi.texas.gov/forms/form11apps.html
Any reputable independent adjuster or firm would keep up their adjuster licenses. Some were missing a business entity license. Clients could easily see the status of an individual or entity license on the National Insurance Registry found at www.nipr.com and then request proof. This sent some adjuster firms scrambling to apply and provide the license.
Meanwhile… the clients would have to find other adjusters to handle the assignments. You could say they were “mal-adjustered”.
Not all states require an entity license. Requirements can be found at www.nipr.com.
As far as Texas goes, Churchill Claims Services is a non-resident entity adjusting firm. And we are, of course, properly licensed with the Texas DOI.
Anyone caught in a mal-adjustered situation or just plain in need of help with more adjusters, reach out to us at 877 840-6277, info@churchill-
And please tell us if our blog sent you!