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January 03, 2017

Carrier Adjuster Licensing Best Practices – Pt.5:
How are other carriers managing the process?

By: Lisa Duling

So, we've discussed challenges of adjuster licensing; shared licensing, state by state rules, and designated home state requirements; discussed CAT losses and emergency licensing; and discussed simple tricks of managing education and CE. All of these posts aim to help you better understand the ins and outs of adjuster licensing, but I'm sure you're asking yourself– how can I take this knowledge back to my team and implement a better compliance practice for adjuster licensing?

First, let's go over some of the mistakes we're seeing in today's adjuster licensing world:

  1. Many carriers have no central group that manages licensing. In most cases, carriers require that the adjuster manage their own compliance however necessary.
    • Issue #1: These carriers have no central database of record for their adjusters. Although some may try to maintain this information on spreadsheets manually, information can quickly be out of date. And the implications of bad data can really come down on you during an audit.
    • Issue #2: How many adjusters do you have? Many carriers struggle to report how many licensed adjusters they have – this is important to know!
    • Issue #3: Who is at fault when information is out of date or cannot be found? YOU – the carrier. So, those scary audits and hefty fines will land on your business. Shouldn't someone from your company be ensuring that this information is correct and your adjusters are compliant?
  2. Several carriers do not have a process or plan for regulation changes.
    • Issue #1: In these cases, carriers are finding out that a regulation has been changed when an item is rejected from the state. You should be ahead of regulation and the requirements for your adjusters and your business in order to respond properly.

So, in order to help you get ahead of these changes, you must first monitor regulation more closely.

Resources to help you monitor requirements

NIPR

The NIPR provides a state by state list of Non-Resident Adjuster Licensing requirements. Here, you can find primary rules, print licenses, find business rules and state offerings, inquire on license fees, and FAQ's for each state. However, be sure to check when the site was last updated (above the "apply here" button) as you run the risk of new regulation changes.

AMCAT

AMCAT Adjusting Services shares rules and reciprocity by state including whether or not a license is required, reciprocity with Texas, and restrictions. These are helpful tips, but be sure to dive a little deeper in to the states' requirements beyond high-level requests.

ePAL

The Electronic Producer All-lines Licensing Service (e-PAL) from Vertafore is the original single-source electronic reference tool for insurance licensing. With more than 2,500 users, e-PAL is the number one reference tool in the industry. Insurance requirements and regulatory forms are conveniently housed in one location as state rules, regulations, forms, and fees are constantly changing. Here, you can monitor all changes to ensure that your adjusters are compliant.

Do you think you could still use additional assistance with your adjuster licensing practices?

Licensing & Registration Services

For those that are unaware, Sircon has a Licensing & Registration Services team that assists several top industry carriers with their adjuster licensing and compliance. Members of the Sircon LRS team are also members of the SILA adjuster licensing committee to help them stay abreast of industry challenges and regulatory changes. So, along with their own tried and true practices, they're always staying on top of the most recent available best practices and process updates.

And that's where it starts with our customers. We share best practices and are available to our customers whenever they have an adjuster licensing need– from DHS and initial licensing to CAT losses, the LRS team can help.

And when it comes to regulation, it doesn't hurt to have an expert by your side.

There are adjuster licensing changes almost every week, and you have to have a regulatory affairs team that prepares you to change your processes quickly. Sircon LRS can be that team to help you stay proactive and keep your adjusters compliant– you will have a piece of mind that the industry's most knowledgeable experts are there to help you at the drop of a hat.

The Hanover Insurance Group is one of many carriers who use our Adjuster Licensing services. Click here to hear their story or here to learn more about how Sircon LRS can help you.


Lisa Duling

Lisa has been with Vertafore (formerly Kaplan Compliance Solutions) for 17 years and has managed various Call Centers, the Grading and Certification Department and is currently a Senior Manager within the Licensing and Registration Services group (LRS). She works with current customers to build strong partnerships and also works with our new customers to determine solution design and work flows.
Lisa Is Securities & Insurance Licensing Association (SILA) certified and is an active member of SILA.