Adjuster

DEFINITION

An adjuster is an individual or business that is paid to adjust, investigate or negotiate insurance claim settlements on behalf of an insurance company or insured. ARS § 20-321.

WHO MUST BE LICENSED

You (individual or business entity) must be an Arizona-licensed adjuster in order to act as an adjuster or to hold yourself out to act as an adjuster unless the scope of your activities is limited to one or more of the following conditions (ARS § 20-321):

Individuals who act as adjusters or hold themselves out to be adjusters must be individually licensed, even if they work for a business-entity adjuster.

APPLICATION REQUIREMENTS (not an exhaustive list)

Not everyone qualifies for an insurance license. The Department can deny a license for any cause listed in Arizona Revised Statutes ("ARS") § 20-295. You should review this statute before deciding to spend the time, effort and money to apply for a license. If you apply for a license, you must truthfully and completely answer questions asked on the application, and you may need to provide additional documentation.

GENERAL REQUIREMENTS Common to All Applicants
Be the minimum age Individuals must be at least 18 years old. ARS § 20-321.01(C)(1)
Pass an exam (individual applicant)  
Fees
(nonrefundable per ARS § 20-167(A))
SPECIFIC REQUIREMENTS For Arizona Residents For Residents of Other States (Arizona Non-residents) For Relocating to Arizona from Outside Arizona
Pass an exam (individual applicant) Individuals who reside in Arizona must pass an exam. ARS § 20-321.01(C)(3)

An individual who resides in a state that does not issue adjuster licenses must pass an exam. ARS § 20-321.01(C)(3)

You do not need to pass an examination if the state where you reside issues adjuster licenses and you are licensed in good standing in that state. ARS §§ 20-321.02, 20-287 and 20-288.

An individual who moves from a state that does not issue adjuster licenses must pass an exam. ARS § 20-321.01(C)(3)

If moving from a state that issues adjuster licenses, you do not need to pass an examination if we receive your license application within 90 days after you cancel your insurance license in your former home state and you submit a clearance letter from that state.

Submit fingerprints Submit fingerprints for individuals and business-entity members, officers, directors and owners. ARS § 20-142(E) Submit fingerprints only if you are not licensed as an adjuster in your home state. ARS § 20-142(E) Submit fingerprints for individuals and business-entity members, officers, directors and owners. ARS § 20-142(E)
License eligibility If you are an individual, submit Form L-152 with your license application. Submit Form L-152 if you are not licensed as an adjuster in your home state. If you are an individual, submit Form L-152 with your license application.
Apply for the license      
  • Individual
Form L-169
ARS § 20-321.01(B)

Form L-169
ARS § 20-321.01(B)
Form L-169
ARS § 20-321.01(B)
  • Business entity
Form L-176
ARS § 20-321.01(B)
Form L-176
ARS § 20-321.01(B)
Form L-176
ARS § 20-321.01(B)
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ADJUSTING CLAIMS DURING A CATASTROPHE

Arizona Revised Statutes (ARS) § 20-321.01(E) allows an insurance company to send to Arizona a person who is licensed or permitted to act as an adjuster in the adjuster’s home state to investigate or adjust a particular loss under an insurance policy or a series of losses resulting from a catastrophe common to all those losses.  The following answers a few frequently asked questions regarding this law.

What type of adjuster is allowed to handle catastrophe claims? Only a company adjuster (an employee of an insurer) or an independent adjuster (an independent contractor utilized by an insurer) may adjust catastrophe claims without an Arizona insurance adjuster license.  A public adjuster (acting on behalf of an insured) cannot.  

How do I apply for an "emergency adjuster" license? Arizona does not issue emergency adjuster licenses. Furthermore, neither the insurer nor the adjuster needs to notify the ADOI when the insurer sends the adjuster to Arizona to adjust claims on the insurer’s behalf. 

What does the insurer need to do to send a person who is not licensed by Arizona as an insurance adjuster to investigate or adjust catastrophe loss claims in Arizona? The insurer (not the Department of Insurance) needs to determine that a condition specified in ARS § 20-321.01 is satisfied and needs to send to Arizona a person who meets the qualifications in ARS § 20-321.01(E). The insurer may want to consult its legal counsel to help make this determination.

For their own protection, insurers should use qualified salaried employees or Arizona-licensed insurance adjusters to the extent possible before involving persons who do not hold an Arizona insurance adjuster license. 

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