Pursuant to recent changes in the Commonwealth Code, effective July 1, 2014 a non-resident adjuster must post a Virginia public adjuster surety bond just as resident adjusters must do. The State Corporation Commission has issued an advisory letter which states, “as a condition of licensure, the electronic application includes an “attestation” wherein the applicant must certify that they have, and will keep in force for as long as the license remains in effect, a $50,000 bond in favor of the Commonwealth with corporate sureties licensed by the Commission. The surety bond number, date and the name of the insurer must be included on the application for licensure. Currently, the Bureau does not require receipt of the actual bond as a condition of licensure.”
Under Virginia law an “individual or business entity who receives, either directly or indirectly, a salary, fee, commission or other compensation for investigating, negotiating, adjusting or providing advice to an insured in relation to first party claims arising under insurance contracts that insure real or personal property of an insured for the purpose of effecting the settlement of a claim on behalf of the insured. The Virginia public adjuster bond guarantees the that the adjuster will follow the statutes and rules of conduct while performing the duties above. Public adjusters work with insureds to assist in the preparation, presentation, and settlement of claims rather than representing insurers.
The new surety bond requirement brings nonresident adjuster license approval inline with the bonding requirements that were instituted for resident public adjusters on January 1st, 2013. A nonresident applicant must be currently licensed or otherwise authorized as a public adjuster and in good standing in his or her home state and pay the $250 non-refundable application processing fee. Adjuster licenses are good for a term of two years from the date of issuance and may be renewed every two years thereafter. Applications are submitted electronically through either SIRCON or the NIPR portal.
Virginia surety leader, Surety One, Inc. is a specialist in the bonding needs of independent and public adjusters. We offer both surety and fidelity bonds needed by these professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a Virginia public adjuster surety bond application for nonresident or resident adjuster, or information on ANY surety bonding need.