Overview of Texas Public Adjuster Bond Requirements
Public adjuster bonds are surety bonds obtained by applicants for a public insurance adjuster license. In the state of Texas, these bonds are required by the Texas Department of Insurance. Their purpose is to guarantee that public insurance adjusters, whose job it is to negotiate insurance claims on the side of policyholders, will do so in an honest and impartial way, and in full compliance with Chapter 4102 of the Texas Insurance Code.
If an insurance adjuster violates these or other state laws, the bond guarantees that compensation can be extended to the parties that have been wronged as a result. The amount of compensation that can be extended can be as high as the penal sum of the bond.
To understand how surety bonds work, have a look at our detailed ‘What is a surety bond’ guide.
Below you can learn more about how much the Texas public adjuster bond costs, how you can get a bond with bad credit, what gives rise to bond claims, and how to obtain your own bond.
If you need more information regarding the bond or bonding process, give us a call at 866.450.3412 to speak to our bond professionals.
Texas Public Adjuster Bond Cost
The penal sum of the Texas public adjuster bond is $10,000, and the cost of obtaining the bond is a small percentage of that amount.
Surety bond cost is determined by looking at an applicant’s finances. Personal credit score is the most important determining factor, followed by financial statements, liquidity and assets. Applicants whose credit score is 700 FICO or above are typically offered the best rates, which can be as little as 1% of the total amount, or $100 in this case.
| Bond Type | Surety Bond Amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
|---|---|---|---|---|---|
| Texas Public Adjuster Bond | $10,000 | $100-$150 | $100-$300 | $250-$500 | $500-$1,000 |
For a free quote on your bond, complete and submit the bond application form, and we will contact you with the details.
Getting Bonded With Bad Credit
As you can see from the table above, getting a bond with lower credit scores is still possible. The only difference for applicants under our Bad Credit Program is that they need to pay slightly higher rates for their bonds. This is necessary because applicants with low credit scores constitute a higher risk for the surety companies that issue bonds.
By applying with us, you are sure to be provided with the lowest and best possible rate on your bond. We work with over 20 of the best sureties in the country, who provide us with exclusive access to a variety of bond rates.
How much your bond will cost under this program is determined on an individual basis. Visit the program page for more information, and contact us directly for a free quote under this program.
Claims Against Your Public Adjuster Bond
The Texas Insurance Code requires public insurance adjusters to obtain a surety bond to satisfy the financial responsibility licensing requirement. Under the Code, the bond protects the customers of the adjuster and their interests.
If an adjuster does not represent their clients’ interests, acts dishonestly, and causes losses or damages to policyholders, a claim can be brought against the bond and compensation can be requested.
In such an instance, the surety company which backs the bond can– upon investigating the claim– extend compensation to claimants. The amount of compensation can be as high as the total bond amount, though not higher.
Claims are costly and time-consuming. They can also jeopardize your ability to get bonds in the future. That’s why it is best to stay away from any practices that may give rise to a claim, and to always communicate with the surety directly if you are concerned about the possibility of a claim arising.
Apply for Your Texas Public Adjuster Bond Today!
Complete and submit the surety bond application form to apply for your public adjuster bond. We’ll get in touch with you to provide you with an entirely free quote on your bond.
Once you complete the application process, it takes about two working days for the bond to be issued and mailed to you. Once you complete the application, we will also provide you with a digital copy of the bond.
If you need any help or further information, you can always call us at 866.450.3412. Our bond professionals are there to help you out. Don’t hesitate to call!
