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Understanding Reciprocity in the World of Insurance Claims Adjusting

Natural disasters can occur anywhere. When a disaster strikes, the need for claims adjusters in the area increases dramatically – in many cases far exceeding the number of adjusters currently active in the state. For this reason, most property insurance companies maintain a network of professional claims adjusters who can be mobilized into disaster teams and sent to areas where this is needed. These agents often live in various states throughout the country, so insurance companies can quickly build a CAT team based on geographic needs. To do this, CAT team members must have non-resident correction licenses in all states where their services may be needed. At 2021 Training in Plano, TX, I’ve been working with people who are seeking to become insurance claims adjusters for years, and I understand how intimidating the idea of multiple licenses can be.

The good news is that at the end of the day, there’s a solution to some of the obstacles you might already be thinking of when it comes to getting a license for other states in the country. Anyone who is involved in the insurance claims industry and those who might be interested in becoming an adjuster will inevitably face the concept of reciprocity in their licensing procedures.

However, the concept of reciprocity is often misunderstood. For adjusters, knowing the right information about the interrelationships of state licensing can save significant time, money and frustration. To help clear up the air about this term, I decided to spend some time getting to the bottom of how it works.

Defining Reciprocity

Reciprocity in the world of insurance claims adjusting refers to an established agreement between states that allows an adjuster with a license in their home state to safely apply for a license in a partner state without the need for an exam or even a pre-licensing course. This is a big deal for claims adjusters because it can save them the time and resources they would otherwise need to spend to meet the educational and testing expectations of other states. While reciprocity allows an applicant to bypass certain requirements, it is important to keep in mind that a properly filled out application and associated fees are still required.

Checking the Fine Print

Presently, most states agree to offer licenses to insurance adjusters who also have a license in their home state, but there are some limitations on the standard rules for reciprocity. Some states do not offer mutual agreement or compliance. In California, Hawaii, and New York, adjusters must take a state exam and their special pre-license course to adjust claims. There are no exceptions and the possibility of reciprocal licenses.

The lack of reciprocity between the three states mentioned above has caused a form of a domino effect. Some states, such as Florida and Delaware, introduced regulations that basically say, \”If your state does not offer reciprocal licenses to our adjusters, we also will not license your adjusters in our state.\” According to this rule, adjusters in New York may not receive a license in Florida, because claims adjusters in Florida cannot obtain licenses in New York. Likewise, other states, such as Oklahoma, specifically point out that adjusters in California, New York, and Hawaii cannot obtain a reciprocal license in their country.

The Importance of Getting a License in Your Home State

Reciprocity is not a magical spell that can be used to get yourself a license automatically after you get home state license successfully. You still have to go through the application process and pay a license fee to receive a license from other states. In most states, applications can be submitted easily and quickly via NIPR or SIRCON. If you are starting a career in insurance adjusting, be sure to read your state\’s licensing policies and procedures. When well understood, reciprocity offers great benefits for claims adjusters who want to maximize their profit potential. Having more licenses means that more claims can be processed easily and without complications.

Get Started in Your Claims Adjusting Career with 2021 Training in Plano, Texas

Being an insurance claims adjuster starts with having the right knowledge, training, and licenses to get the job done. If you’re looking for the guidance and support you need to break into this exciting industry, then you don’t need to look any further. With years of on the job experience and more than a decade of success teaching new adjusters, my team and I are always ready to help people put their best foot forward on the first steps in this exciting career.


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