Overview of New Mexico Public Adjuster Bond Requirements
When you apply for a public adjuster license in New Mexico, you will need to submit a $10,000 public adjuster bond to the Office of Superintendent of Insurance.
What is the purpose of this bond?
This bond guarantees that once a public adjuster is licensed in the state of New Mexico, they will comply with the provisions of the New Mexico Insurance Code, and in particular Article 13.
If a licensed adjuster violates these laws and causes harm to any individual who makes use of their services, the latter may file a claim against the adjuster's bond.
The surety which has issued the bond must then conduct an assessment of the claim and decide what amount of compensation to extend to the claimant. Potentially, compensation can be as much as the full penal sum of the bond.
If you want to know more about how bonds work and why businesses need them, see our detailed ‘What is a surety bond' guide!
In the following sections you can learn more about the cost of this bond, what can trigger a bond claim, and how you can apply for a bond!
If you have any further questions about this bond, and how to apply, call us at 866.450.3412!
How Much Does The New Mexico Public Adjuster Bond Cost?
The cost of your bond, i.e. the surety bond premium, is a percentage of the entire amount of your bond. Your surety will determine your premium based on the information you provide in your application. It will look at the following factors primarily.
Factors that determine your bond premium
The main thing that your surety will want to review is your personal credit score.
Credit score is considered a solid indicator of the likelihood of a claim being filed against a bond. The higher an applicant's score, the less likely that applicant is to give rise to a claim.
Applicants with excellent scores are therefore offered rates between 0.75% and 1.5% of the total amount of their bond. Applicants with good or moderate scores are typically bonded in the range of 1.5% and 5%. Finally, applicants with low scores can expect to be offered a rate between 5% and 15% of their bond's amount.
Along with your credit score, your surety will possibly also request to see your:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Get an estimate of the cost of your bond, based on your credit score, from the table below!
|New Mexico Public Adjuster Bond Cost Based on Credit Score|
|Above 700||650-699||600-649||Below 599|
|New Mexico public adjuster||$10,000||$100-$150||$100-$250||$250-$500||$500-$750|
How Do Bond Claims Occur?
Section 59A-13-5 of Article 13 of the New Mexico Insurance Code specifies the requirement for public adjusters in the state to get bonded. According to the Section the purpose of the bond is to guarantee that if the state or any member of the public suffers actual damages due to an adjuster's actions, the bond will serve as financial security.
In other words, if someone is harmed by an adjuster, they may file a claim against their bond to secure compensation. This prompts the surety to investigate the claim and determine whether it is legitimate and claimants require compensation.
If it is, the surety will extend compensation to cover damages. Such coverage may even be as high as the full amount of the bond, if necessary.
Once the surety compensates claimants, the adjuster must reimburse the surety in full. Liability for claims is always assumed by the bonded party, and not the company that extends the bond. Due to this condition, it is advised that once you get bonded, you strictly comply with all the requirements of your bond, so as not to incur costs associated with a claim.
How Do I Apply For a Bond?
To get started with your application, click on the banner below and complete our brief bond form. As soon as we have processed your application, we will provide you with a free quote and additional information.
If you want to know more about getting bonded in New Mexico and prefer speaking to someone in person, call us 866.450.3412 anytime!