Independent adjuster or public adjuster in New York?

Opposite sides of one claim

When a kitchen fire damages a house, two kinds of licensed adjuster can be involved. An independent adjuster is sent by the insurer, or by a firm the insurer hires, to investigate the loss and work out what the policy owes. A public adjuster is hired by the homeowner to prepare and present the claim to the insurer. The New York bulletin puts it plainly: public adjusters work "on behalf of the insured," and independent adjusters "act on behalf of the insurer."

Both read the same policy forms and price the same damage. What differs is the client, and the rules that come with having a member of the public as your client.

What you need before you book

The bulletin's license table shows a real difference here. It lists 40 hours of prelicensing education for the Public Adjuster license and none for the independent adjuster lines. A public adjuster applicant also files a Statement of Employer showing at least one year of regular employment in the insurance business, in sales, underwriting or claims, or other experience the Superintendent considers sufficient.

For the independent lines, the requirement in the bulletin is the exam itself: you pass one for each license you want to hold before you apply.

How the exams differ

Series 17-62, the Public Adjuster exam, is 60 questions in 1 hour. Its largest topic is Adjusting Losses at 22%, followed by Businessowners Policy at 14%, then Insurance Basics and Homeowners Policy at 13% each. It is entirely property: dwelling, homeowners, commercial package and businessowners forms, with no auto or health.

Its regulation section is where the public side shows. The outline lists contract requirements, the insured's right to cancel, the compensation agreement and maximum compensation, all drawn from Regulation 10, Part 25. Those are rules about how a public adjuster deals with the person who hired them, and they do not appear on the independent outlines in the same form.

The independent exams range from the 100-question 17-70 General down to single-line exams of 60 questions, such as 17-64 Fire. Their regulation sections focus on licensing, unfair claim practices and claim settlement rules.

Picking one

If you want to be hired by people who have had a loss, you are heading for 17-62 and its course. If you want claim assignments from carriers, start with the independent line that matches the work. Some adjusters hold several licenses, but each one is its own exam and its own pass at 70%.