Independent Adjuster Requirements


Adjuster FAQs

Definition

An "independent adjuster" is a person who, for compensation as an independent contractor or as an employee of an independent contractor, undertakes on behalf of an insurer to ascertain and determine the amount of any claim, loss, or damage payable under a contract of property, casualty, or workers' compensation insurance or to effect settlement of such claim, loss, or damage. Ala. Code § 27-9A-3.

Exemptions - Those who do not require an independent adjuster license.

Independent Adjuster Exclusions

Qualifications

Firms and individuals may become licensed adjusters.

Individuals must:
  • Be 18 years of age or more.
  • Must complete the required 20 or 40 Hour Prelicensing Adjuster Course from an approved provider for the requested line of authority. Must take and pass the State final exam and then apply for the license.
NOTE: Non-resident individuals and non-Alabama firms must permit Alabama resident adjusters and Alabama firms to act as adjusters in their home state.
Adjuster Lines of Authority for which a 20 or 40 Hour Exam must be taken.
Property and Casualty, including Workers’ Compensation and Crop (40 Hour)
Property and Casualty, excluding Workers’ Compensation and Crop (20 Hour)
Workers’ Compensation (20 Hour)
Crop (20 Hour)
Apprentice Adjuster License (new license type / 12 month – 1 time Only temporary license)
Apprentice Adjuster Property and Casualty, including Workers’ Compensation and Crop
Apprentice Adjuster Property and Casualty, excluding Workers’ Compensation and Crop
Apprentice Adjuster Workers’ Compensation
Apprentice Adjuster Crop
Apprentice must be supervised by actively licensed Independent Adjuster who can only supervise up to 5 Apprentices at once.

Emergency Independent Adjuster (Only for Declared Emergencies by the Alabama Governor)
Registration is through T.E.A.R.S. system online now requires fee of $50 per individual registration.

Initial Licensing Process

Alabama Residents:

  • Must have completed the 20 or 40 hour prelicensing course and passed the state exam.
  • Applicant must apply online. Click Here.
  • Application fee of $20.00 and application fee of $80.00 will be accessed along with a credit card processing fee of 3.5%. NIPR FEES ARE NON-REFUNDABLE.
  • To change/add a designated adjuster click here. (Form AL-DP-1)
  • Click Here to print your license.
Non-Residents:

There are two different initial licensing processes. Online thru NIPR and online thru SBS.

NIPR Mandatory Online Process is for those non-resident adjuster applicants whose home state licenses Independent adjusters. Applicant must apply online. Click Here.

SBS Mandatory Online Process is for those non-resident applicants whose home state, as listed below, does not license adjusters. These states do not license Independent Adjusters (CO, DC, IA, IL, KS, MA, MD, MO, ND, NE, NJ, OH, PA, SD, TN, VA, and WI;
NOTE: Cannot use AL as a designated home state unless applicant is from a nonlicensing state and has passed AL exam).
Click Here

* Partial SBS applications will be rejected and no refund given. Must reapply.

  • To change/add a designated adjuster click here. (Form AL-DP-1)

Address Change Form

If your address changes, please complete the Address Change Form.

NOTE: Individual and Business Entity Adjusters now have the ability to update their e-mail addresses online, within the 30 days required by law in Alabama, through SBS Online tools. You can access this by going to our website at www.aldoi.gov and under Producers/Agents either click on Print Your License or View Your CE Info and that takes you straight to SBS and it will be under Email Maintenance.

Adjuster Renewal Process

Adjuster licenses are renewed biennially. Individual adjusters are allowed to renew their license online 45 days prior to their birth month until the last day of their birth month, with a renewal fee of $80. If your license is not renewed by the last day of the birth month, the license is given a 30 day grace period with a $40.00 late fee plus the $80.00 renewal fee.

Beginning January, 2014 continuing education is required for the independent adjuster license renewal as per the new Adjuster law (Act 2011-637) that went into effect January 1, 2012. Independent Adjusters will be required to complete 24 CE hours of which 3 should be in ethics.

MUST HAVE CE COMPLETED TO RENEW LICENSE.

Non-Resident Adjusters who have met CE compliance requirements in their resident state or designated home state’s CE requirement is exempt here. Otherwise, they must complete Alabama CE.

States who do not license independent adjusters: CO, DC, IL, IA, KS, MA, MD, MO, ND, NE, NJ, OH, PA, SD, TN, VA, and WI

States who do not require CE: AZ, CT, HI, ID, ME, MI, NV, NM, NY, OR, RI, SC, VT (only requires CE for WC), WA, and WV

Business Entity Adjuster licenses are renewed biennially by December 31st in odd years. Renewal fee is $200. The license is given a 30 day grace period, with one and one half times the renewal fee ($300).

The renewal license can be printed by clicking here.

If your license is not renewed by the last day of your birth month or your 30 day grace period the license will then be expired and have a 365 day reinstatement period from the last day of your birth month with a $160.00 fee.

Fees

Application Fee - $20.00
License Fee - $80.00
TOTAL INITIAL FEE - $100.00
Biennial License Renewal Fee - $80.00
Biennial License Late Renewal Fee = $120.00
Reinstatement Fee = $160.00