October 27, 2016
Carrier Adjuster Licensing Best Practices – Pt.3:
Education and CE Fun Facts
By: Heather Omran
In our last post, we discussed the Step 1 in initial licensing processes and for those in states without license requirements, designated home state selection. Step 2 in the process includes completing all education requirements for the state that the adjuster is doing claims in. And as you may be aware, it's not as simple as taking a single exam.
Many states have pre-licensing exams specific to their state, it is not uncommon that an adjuster is required to take a new exam or course before managing a claim in a new state regardless of their current license status. Additional complications arise when you have to differentiate which types of claims your adjusters are handling, because those CE requirements for specific types of claims are different between states as well.
So in short, what else makes this process so complex?
- Some states have paper processing instead of electronic
- States aren't reciprocal (as stated before, so no surprise here!)
- Requirements changed based off the types of claims you're managing.
- For example: Depending on the state exam you take, if your state only offers P&C licensing but need to be licensed for workers comp then you have to take additional exams for your works comp licenses
- If you're adjusting a new type of business, exams and courses are specific to that type of claim, so you must complete exam and CE requirements specifically for each type of business (crop, workers comp, etc.)
- Some states do not provide resources that explain education and CE requirements, so the industry relies on calling those states to ensure proper compliance
Here are a couple Education and CE Fun Facts to help you better understand the different requirements:
- Only 28 states recognize a nonresident exam
- Texas requires a 40 hour course or the adjuster has the option to take an exam
- Typically states don't have pre licensing requirements for adjusters like producers do
- Your original DHS may not have CE requirements, so you must designate a different state for your CE home state in addition to your DHS (something to think about and consider early on!)
- Here's the issue many run in to here: If your DHS doesn't match your CE state, some states won't let you renew or get a new license in that state
- For example: Rhode Island does not have CE requirements, so if you have a Rhode Island DHS, then you designate Florida for CE, states like Wyoming will not accept your CE because they require that your DHS and CE home state are the same. So in this case, if the adjuster needs to do business in Wyoming, they have to switch their DHS to a state that requires CE as well.
- Some states require various hours of ethics courses
- Online education is available, however, some states have various online vs. in person hours required. Texas, for example, only allows a certain amount of online hours and the rest must be done in a classroom.
So, in spite of these facts, there are a few questions that you can address early on with your staff adjusters so that you don't run in to some of these road blocks. Or, at least take the path with the least bumps in the road.
- Where do you live? This will help with test center locations for states that require that the adjuster is in the classroom.
- What type of claims will you be adjusting? Here you can ensure that the adjuster is licensed for all the claims they plan on adjusting and that those are covered early on as opposed to scrambling right before managing a claim.
- What states will you be adjusting claims in? By discussing this early on, it will help ensure that the adjusters education is accepted in all of those listed states.
- Does your DHS have CE requirements? If not, we may want to reconsider the adjusters DHS because as we said before, some states do not accept different DHS and CE states. Or, for example, if an adjuster completes their education requirements in Delaware, they only require 9 hours of education where Oklahoma requires more hours. So, that adjuster could not manage claims in Oklahoma because they have not completed enough hours of education.
- Does your DHS require CE hours that meet reciprocal agreements? For those adjusters who have DHS' that don't require CE, they will have to designate a second state for CE that meets reciprocal agreements to maintain licensure.
Again, these are all important facts and questions that you should be aware of and asking yourself before your tell an adjuster that they're all set with their education requirements. There are simpler paths that can be taken and can get you the biggest bang for your buck by planning ahead and asking these questions up front.
Still having difficulties choosing what CE works for your adjusters? Please feel free to contact me and we'll assist you in giving our recommendations for your adjusters!
After graduating from Indiana University, Mrs. Omran began her career in customer service working for a Consulting Company that managed a Federal tax credit plan. After five years, she started working for a publishing company in the Academic Support department where she managed the inbound call center team that serviced our 25,000+ customer base.
After many years in customer service, Mrs. Omran moved to insurance industry with Farmers Insurance. She started with Farmers in the Indianapolis Agency Point office assisting new agents in learning the quoting platforms and the forms required to bind and issue policies. She then moved to a District Farmers office where she was the District Trainer for a year and a half. Currently in her role as Manager, Licensing & Registration Services, with Vertafore Mrs. Omran manages a team that handles several different customers including adjusters, producers, and securities.