The Importance of Obtaining a State License vs An Emergency License

Today’s blog is courtesy of compliance expert, Cyndie Jackson.

If you watch the news then you are aware of the recent tornadoes and baseball size hail that recently hit the Dallas, Texas area. Several people will be impacted by these storms and need assistance from their insurance companies and adjusters to take care of any damage their homes may have sustained. Many of these insureds may actually be without a home at this point. The sense of urgency for getting help to these insureds is why we need to look at the procedures in place for emergency licensing.

The state of Texas will only issue an emergency license if the Insurance Commissioner calls an emergency. They do not rely on any other third parties to call a catastrophe. It must come directly from the Insurance Commissioner himself. The Commissioner will not declare an emergency for storms such as the one recently experienced in Dallas as the state feels there are enough licensed adjusters to be able to handle a storm of this size. While this may be true across the country, it may not be true for one small agency using independent adjusters or independent adjusting firm. Therein lies the importance of obtaining a state license. If an adjuster holds a resident or non-resident adjuster license, they can work any and all claims in the state in which they hold a license. If a catastrophe should occur there is no need to wade through the paperwork and cut through the red tape to obtain an emergency license.

If an independent adjuster would like to be a catastrophe adjuster, it would benefit him or her to obtain any state licenses prior to any storms occurring. As we all know, the primary storm areas are along the East coast as well as the Southern coastal states such as Texas, Louisiana, Mississippi, Alabama, Florida and Georgia. Most of these states will reciprocate with a Texas license.

In closing, it is imperative you check the states requirements prior to beginning work in their state. Review our previous blog on reciprocity for more information.