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Adjuster Licensing Agreements Between States

Adjuster Licensing Agreements Between States

Adjuster Licensing Agreements Between States

 
You will most definitely encounter the concept of reciprocity in your licensing endeavors. This includes those in the insurance claims adjusting business. Also, those who show interest in becoming an insurance adjuster.
 
The concept of reciprocity is often misunderstood or at the very least, misrepresented. For an adjuster, knowing the true ins and outs of state licensing reciprocity can save significant time, money, and aggravation. So what is reciprocity? And what does an insurance adjuster need to know about it?

What Reciprocity Isn’t

First, it’s important to understand what adjuster reciprocity doesn’t mean. There is a common misconception that once you have obtained a state’s license – say Texas for example. You can waltz into any other state, at any time, and begin working claims. This is not the case. On occasion, a state’s insurance commissioner will declare a state of emergency and grant “open doors” to licensed adjusters from other states. This has less to do with reciprocity and more to do with the demands of a catastrophe.
 
What if you hold an adjuster license in your home state? You will still need to go through the application procedure in other states where their reciprocity is granted.

What Reciprocity Is

Adjuster license reciprocity refers to a mutual agreement between states. An adjuster holding a license in his or her home state can successfully apply for a license in another state. This can be without having to take that state’s exam or prelicensing course. This is important to adjusters. Meeting other states’ educational and testing requirements mean significant investments of time and money.  Reciprocity bypasses those requirements. But to obtain a reciprocal license, the adjuster needs to apply for the other state’s license. Also, pay any required fees.

Are some states better for Reciprocity?

Another common misconception suggests that some states enjoy more reciprocity than others. Texas is reciprocal with 32 states. In today’s industry, reciprocity is predicated not on what state you have but on whether it’s your home state. In this sense, the term reciprocity is somewhat ill-cast. It’s not true reciprocity in the sense that there is a quid pro quo, a mutual agreement of exchange between two specific parties. Rather, its a more general, nation-wide acceptance. It says ‘if you have your home state license, you can get our license too.’. Again, it doesn’t have anything to do with which state, so long as that state is your home state.
If you have further questions about reciprocity, feel free to contact us!
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