Overview of California Public Adjuster Bond Requirements
This bond is required of all applicants for a public adjuster license in California. Public adjusters help in the negotiation of settlements or the effecting of settlements of claims with insurers on behalf of claimants. To ensure adjusters’ honesty and compliance with California statutes, a bond is required as a financial guarantee.
Under this bond agreement, if an insurance adjuster violate these statutes, leading to harms or losses for their clients, a claim can be filed against their bond. When a claim is filed, the surety that backs the bond may extend compensation up to the full amount of the bond, also known as the penal sum.
Licenses for public insurance adjusters in California are valid for two years and must be renewed on or before the date of their expiration. A delinquency fee is due if the renewal deadline is missed by licensees.
Want to know more about surety bonds? See our detailed ‘What is a surety bond’ guide!
Read on for more information about the cost of this bond, getting bonded with bad credit, why claims occur and how to obtain your own bond.
For more information regarding the bonding requirements for public insurance adjusters in California, call us at 866.450.3412!
Cost of Getting Your Bond
The bond amount required by the CDI for public adjuster bonds in California is $20,000, whereas private adjuster bonds are $2,000. This amount is the full amount of compensation that the surety may extend in case of a claim or several claims against a bonded insurance adjuster.
The cost of getting bonded is a fraction of that amount, determined by the surety when you apply for your bond. The surety determines the rate at which it can extend a bond by reviewing the personal credit score of an applicant, along with other important financial information. The higher an applicant’s score, the lower the rate which the surety requires for the applicant to get bonded.
Typically, applicants with a FICO score of 700 or above are considered applicants with high credit, and are offered the lowest rates - between .75% and 2.5% of the total bond amount.
Bad Credit Bond Program
If your credit score is not as high so as to qualify you for standard market rates, you can still get bonded by applying through our Bad Credit Program!
This program is devised to make bonds accessible to those of our applicants who have lower credit scores. Bonds under this program are issued by the same expert sureties we work with, though at slightly higher rates. This is necessary because of the increased risk when bonding applicants with lower scores.
Have a look at the program page for further information on how to get bonded, and to request a free quote.
Claims Against Your Bond
According to Chapter 2, Article 4 of the Insurance adjusters law, a bond is meant to guarantee that adjusters will conduct business faithfully and honestly. If, instead, someone is injured by a “willful, malicious, or wrongful act” of an adjuster, a claim can be brought against the bond in order to compensate for such injury, and the damage suffered as a result.
In such a situation, a complaint is filed with the Department of Insurance which may file a claim against the bond. When that happens, the surety may extend compensation to one or several claimants up to the full amount of the bond. In return, the bonded adjuster will have to repay the surety in full for such compensation.
Get Your Public Adjuster Bond Today!
Apply for your bond by now by completing our bond application form. We will contact you shortly with your free quote, along with further information on how to complete the application process.
After completing the application process, it will take about two working days to issue your bond. Once your bond is issued, we will provide you with a digital copy right away, as well as send the original to you via standard mail.
You can reach us at 866.450.3412 at anytime, if you have any questions about getting bonded or require assistance with your application. We will be happy to help!