This post is part of a series sponsored by AgentSync.
It is well known that adjuster licenses are terrible. Ask someone who has worked as an appraiser. or handled adjuster compliance. Or even a state insurance department regulated adjuster.
There are many factors that make obtaining an appraiser’s license very difficult. One is that, like producers, regulators do not have a single agreed standard. Seriously, if you’ve ever gotten your adjuster’s license, you’ll find yourself crying like a nerd at how perfect it is. Producer License Model Law.
However, many states do not issue licenses to anyone other than public adjusters. Or perhaps issuing a public or independent valuer. However, some states license public appraisers, independent appraisers, and staff appraisers. And then there are professional fitters and apprentice fitters. Additionally, almost all require special licenses or procedures to be emergency coordinators in the event of a disaster. At the root of this complex state-by-state confusion lies an important question. That is, where is the home office designated by the appraiser?
Are you ready to make your adjuster licensing process a differentiator for your business? Download the guide here.
What is DHS?
A designated home state (DHS) license is used when an adjuster needs a license to obtain a reciprocal adjuster license, but the state of residence does not provide the required license. Instead of having to obtain an entirely new license in every state in which they adjust claims and comply with multiple states’ regulations for exams and continuing education, adjusters can obtain a license in a state where they do not live and then use that To obtain reciprocal licenses in (other) non-resident states. Regardless of the state in which an appraiser obtains their DHS, they must also meet that state’s requirements for exams and continuing education to obtain and maintain their license.
What makes Florida attractive for DHS licensing?
Florida has a reputation for issuing DHS licenses to out-of-state adjusters who require a license to transact business in multiple states with varying adjuster regulations. Therefore, if we were to audit the entire United States, the percentage of assessors in Florida could be somewhat skewed.
First, the Florida appraiser license is reciprocal with a large number of states. In fact, Florida is the only state that allows Puerto Rico to reciprocate appraiser licenses, and appraisers licensed in Florida are not required to retake the Puerto Rico exam. One more thing: Florida is one of 16 states that have reciprocity agreements for adjusters.
However, just because Florida can provide a convenient path to licensure does not mean it is always the best choice for appraisers who want to work across the United States. Here are three good reasons not to use Florida as your appraiser DHS.
No. 1: The state where the appraiser resides provides the required license.
This may seem obvious. But as much as I often hear people lament that they got Florida’s DHS only to find out that Florida provides the necessary staff and independent appraiser licenses. But if…well, there would be noisy pockets.
The standard advice of many large agencies and trucking companies is to “get a Florida DHS,” so some appraisers will undoubtedly get a Florida DHS without knowing anything about their state’s services. I will. Many states then deny these DHS licenses because they flag the adjuster’s address as being in a state where they have a required staff or independent license.
So, before forcing your appraiser to have a Florida DHS license by default, be sure to understand what resident appraiser licenses are available in different states.
No. 2: The assessor’s country of residence offers a universal license.
Just a small change in appraiser regulations can put hundreds of appraiser licenses in flux, such as the infamous Georgia appraiser change. Essentially, Georgia removed language that previously limited licensing in the state to public adjusters, and other states took notice. Several states have warned that after that point, Georgia residents who hold a staff appraiser DHS license from another state will no longer be able to renew or obtain a nonresident appraiser license in those states. uttered. In exchange, Georgia residents had to surrender their DHS licenses and take the Georgia expert witness exam.
This change is not so obvious. This change caused quite a headache a few years ago. If you weren’t working on an expert witness license at the time, you might be forgiven for not understanding this nuance. However, it’s still important to know if one of your appraisers resides in a state where they can take the expert witness exam, even if it’s not exactly the type of appraiser license you’re looking to obtain.
No. 3: The appraiser works in California, Hawaii, or New York.
There are three states that require all adjusters working in that state to take a state-specific exam, regardless of the adjuster’s state of residence. California, Hawaii, and New York require everyone to dance to their own tune, so if you have an appraiser who primarily works in one of those states, be sure to learn more about the nuances of those states. Digging deeper may be most effective.
One reason to tread carefully is that if you have a California, Hawaii, or New York license, some states may delay or deny your application for a nonresident license. . This is because it is not a reciprocal license in some states.
Make it easy for adjusters to get licensed, regardless of where they are licensed.
Until states make a concerted effort to standardize adjuster licensing, we will all be stuck in the wild west of adjuster regulation. But it doesn’t have to be the pain and liability that many carriers and agencies currently feel.
AgentSync provides a single interface to manage data and coordination power directly from the National Insurance Production Registry (NIPR). Our secret sauce is to bake appraiser data into our system, such as line of authority limitations and state reciprocity, so in addition to always having up-to-date data on where appraisers are licensed, we Become more reliable about non-resident licenses and renewals. .
To see how AgentSync Manage can transform your adjuster license management, visit Schedule a demo today.
Want to learn more about turning your adjuster license into a value proposition rather than a liability? Download the guide.
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