| The Texas insurance adjuster license is easily the | | | | license truly has. The real answer, unfortunately, is |
| most sought after adjuster license in the country. | | | | slightly complex and, because each state's |
| Famed for its extremely high level of reciprocity | | | | interpretation of reciprocity is different, varies |
| with other states' licenses, the Texas adjuster | | | | from state to state. Nonetheless, coming to a |
| license is often perceived as a cure-all to | | | | correct understanding of the situation is vital and |
| companies and independent adjusters looking for | | | | will prevent undue expense of time and money |
| comprehensive licensure. But what are the real | | | | for companies and individuals alike. |
| implications of becoming a licensed Texas adjuster | | | | First, what is reciprocity? Reciprocity, generally |
| and are the common representations accurate? | | | | speaking, is the principle whereby the favors, |
| Understanding the true reciprocal benefits of this | | | | benefits, designations, or penalties granted by one |
| license will enable companies to make sound | | | | state to the residents of another state should be |
| licensing decisions for their staff adjusters and | | | | returned in kind. In the context of adjuster |
| allow independent adjusters to maintain | | | | licensing, it means that if one state, say Florida, |
| well-informed expectations and save time and | | | | licenses adjusters already licensed in Texas, then |
| money. Let's separate reality from common | | | | Texas should do the same for those adjusters |
| perception and demystify the nation's most | | | | licensed in Florida. That is the basic principle. Most |
| coveted adjuster license. | | | | states, with the notable exceptions of Nevada, |
| License Overview | | | | Hawaii, New York, Arizona, and South Carolina, |
| There are two types of multi-line adjuster licenses | | | | are reciprocal with most other states that license |
| that may be obtained through the Texas | | | | adjusters. |
| Department of Insurance (TDI): the 1) all-lines | | | | The matter becomes complicated when dealing |
| license and b) property and casualty license. The | | | | with non-resident licenses. Many states (Kansas, |
| all-lines designation enables licensees to handle | | | | Missouri, Pennsylvania, Ohio, Illinois, and Colorado |
| residential, commercial, automobile, farm and | | | | to name a few) do not require their adjusters to |
| ranch, inland marine, ocean marine, and worker's | | | | be licensed. Thus a twenty year adjuster from |
| compensation claims. The property and casualty | | | | Kansas City wishing to become licensed in Georgia |
| (P&C) license is different only in that it does | | | | to work hurricane claims might have a problem |
| not certify licensees to handle worker's | | | | because there is no license in Kansas for Georgia |
| compensation claims. For the purposes of | | | | to be reciprocal with. A Texas non-resident license |
| property adjusters, particularly cat adjusters, | | | | is then often turned to as a means of resolving |
| these licenses are effectively the same. Another | | | | this dilemma. The results can be disappointing. |
| distinction regarding licensure is the resident vs. | | | | Georgia, like many other states, mandates that if |
| non-resident status of the license. While both | | | | you do not hold a resident license you must pass |
| certify its designees to work the exact same | | | | their exam before successfully applying for |
| types of claims, there are absolutely crucial | | | | licensure. It is unfortunate that adjusters in states |
| differences with regards to reciprocity that will be | | | | that don't require licenses are punished when it |
| explained in greater detail below. | | | | comes to reciprocal privileges. On the other hand |
| Obtaining the Texas Adjuster License | | | | states such as Georgia are merely trying to close |
| Obtaining your Texas adjuster license, be it all-lines | | | | reciprocal loopholes (i.e. Georgia residents |
| or property and casualty, is ordinarily | | | | attempting to get licensed in Georgia without |
| accomplished by taking either 1) the state exam | | | | taking the state exam by using a non-resident |
| administered by Prometric or 2) a certified | | | | Texas adjuster license). There are, however, |
| pre-licensing course. The state exam is notoriously | | | | some states (i.e. Alabama) that aren't concerned |
| difficult and there is absolutely no guarantee of | | | | whether your license is resident or non-resident. |
| passing the exam. Many veterans within the | | | | The lesson to be learned is that the matter should |
| insurance industry, counting on expertise in their | | | | be examined on a case by case basis and should |
| particular field, have failed the exam owing to | | | | consider a) your state of residence b) the licenses |
| unexpected questions asked on more obscure | | | | you hold and their resident/non-resident status |
| lines such as farm and ranch and inland and ocean | | | | and c) the policies by state of the licenses you |
| marine. The state exam must be scheduled with | | | | wish to obtain. Again, merely holding a Texas |
| Prometric and exam study courses are available | | | | license doesn't guarantee reciprocal licensure in |
| to assist in preparation. Pre-licensing courses are | | | | most states. The most important consideration |
| 40 hour classroom or online courses that are | | | | and the factor that will most influence the level of |
| offered as substitutes for taking the state exam. | | | | reciprocity to be enjoyed is the resident |
| The 40 hours consist of 30 "classroom" hours and | | | | non-resident factor. Adjusters holding resident |
| 10 hours of self-study. An exam consisting of 150 | | | | licenses will be able to gain far greater reciprocal |
| questions is generally administered at the end of | | | | privileges than those holding non-resident licenses - |
| the course and serves as the culminating | | | | regardless of the state. |
| evaluation for the prospective adjusters. | | | | Other benefits of the Texas License |
| The pre-licensing course satisfies all Texas | | | | There are other benefits, aside from reciprocity, |
| Department of Insurance requirements for | | | | to be gained by obtaining the Texas adjuster |
| obtaining the Texas adjuster license. Once the | | | | license. Within the independent insurance adjuster |
| state exam or a pre-licensing course is completed, | | | | industry, and especially among cat (catastrophic) |
| students must still submit their application to the | | | | adjusters, the Texas adjuster license is probably |
| state. Application processing typically takes | | | | the most widely recognized and respected of |
| between 2 and 4 weeks. The application may | | | | licenses. Many adjusting firms that contract IAs to |
| require a criminal background check and | | | | work claims are based in Texas. Having this |
| fingerprinting for successful submission. Finally, any | | | | license may be even be mandatory as a |
| adjuster holding a CPCU or AIC designation is | | | | prerequisite to employment in some cases, |
| exempt from taking any course or exam and | | | | whether you are a resident of Texas or not. |
| may immediately apply for licensure. | | | | Another benefit of this license is that it is |
| Reciprocity and the Texas License | | | | relatively easy to obtain. Online licensing courses |
| The reciprocal benefits of the Texas adjuster | | | | and an abundance of regularly scheduled |
| license are poorly understood and inaccurately | | | | classroom licensing courses are available for |
| represented. One common misconception holds | | | | immediate registration. Most other states lack the |
| that once licensed as an adjuster in Texas you | | | | educational resources and support for licensure |
| are automatically licensed in 32 other states as | | | | that are hallmarks of the Texas Department of |
| well. Other notions have it that the Texas license | | | | Insurance and its licenses. |
| is reciprocal with every other state in the country | | | | If you are beginning your insurance adjuster |
| or that it is by far the most reciprocal license. | | | | career, be sure to check your state's adjuster |
| While certainly a powerful license, these | | | | licensing rules. Starting with the right license will get |
| statements incorrectly apply the principles of | | | | you started on the right foot! |
| reciprocity and the scope of influence that this | | | | |
