Surety Bond Encyclopedia

Public Adjuster ($20,000) Bond - Statewide in Delaware

Brief Summary

In Delaware the $20,000 bond is not a one time filing. A public adjuster license terminates automatically the day the bond stops being in force, so the bond has to be placed with the application and kept current for as long as you adjust claims. We write it through a surety insurer authorized in Delaware and keep it renewing on schedule so your license never lapses over a missed premium.

Delaware requires every public adjuster applicant to file a $20,000 surety bond with the Insurance Commissioner under 18 Del. C. § 1752. The bond must be issued by a surety insurer authorized to do business in Delaware, runs in favor of the State, and secures the faithful performance of the adjuster's duties. If the bond is not in force, the public adjuster license terminates automatically.

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How to Apply for a Public Adjuster ($20,000) Bond:

Pass the Delaware public adjuster examination, or confirm you qualify for the reciprocity waiver under 18 Del. C. § 1751(c).
Have your legal name exactly as it will appear on the public adjuster license application.
Provide your home address and Social Security number for the surety's credit review.
Pay the premium and receive the executed $20,000 bond in favor of the State of Delaware.
File the bond with the Insurance Commissioner at the time of the license application.
Keep the bond renewed for the life of the license, since the license terminates automatically if the bond is not in force.

Detailed Information About the Delaware Public Adjuster ($20,000) Bond:

A lapsed bond ends the license

The detail most applicants miss is in the first paragraph of 18 Del. C. § 1752: a public adjuster license automatically terminates when the bond is not in force. There is no grace period written into the statute. The bond is filed with the Commissioner at the time of application, and it has to stay active for the life of the license.

What the bond covers

The bond is $20,000, executed by a surety insurer authorized to transact business in Delaware, and it secures the faithful performance of the adjuster's duties. It is written in favor of the State and specifically authorizes the Commissioner to recover damages if the licensee is convicted of fraud or unfair practices in connection with the public adjusting business. The surety's total liability for all damages is capped at the bond amount, and the bond cannot be terminated without at least 30 days written notice given to the licensee and filed with the Commissioner.

The license around the bond

Under § 1751, the Commissioner issues a public adjuster license to an applicant who pays the same fee as for an adjuster's license, passes a written examination, and shows sufficient experience, training and instruction in adjusting first party property claims. The examination can be waived for an applicant licensed in good standing in another state that certifies the applicant passed a written exam and that extends the same treatment to Delaware licensees. The license stays in force as long as the adjuster completes continuing education and pays the renewal fees set for adjusters.

Contract and fee rules the Commissioner enforces

A public adjuster must have a written contract on a form approved by the Commissioner before acting for a client. The fee may not exceed 2.5% of the first $25,000 of the client's total insurance recovery, and may be up to 12% of the recovery above $25,000. The insured can cancel until midnight on the third business day after signing. Soliciting a client while a loss producing occurrence is still in progress is prohibited, and records of each transaction must be kept for at least 5 years after the transaction ends.

Who falls outside the chapter

Section 1759 excludes adjusters and employees acting for insurers, agents or brokers who adjust without compensation for their own insureds, attorneys who do not regularly act or advertise as public adjusters, health care providers filing health claim forms for patients, fact gatherers and technical support such as photographers, private investigators and engineers, people settling life and health claims, clerical staff, and people settling subrogation claims between authorized insurers.

Eligibility and Requirements for a Delaware Public Adjuster ($20,000) Bond:

Bond amount of $20,000 under 18 Del. C. § 1752.
Issued by a surety insurer authorized to transact business in Delaware.
Written in favor of the State, authorizing recovery by the Commissioner.
At least 30 days written notice to the licensee and the Commissioner before the bond can be terminated.
Continuous coverage, because the license automatically terminates when the bond lapses.

Delaware Public Adjuster ($20,000) Bond FAQs:

What happens if my bond is cancelled or lapses?

Your Delaware public adjuster license terminates automatically under 18 Del. C. § 1752(a). The surety has to give at least 30 days written notice to you and the Commissioner before cancelling, which is the window to replace the bond.

Who is the obligee?

The State of Delaware. The bond specifically authorizes the Insurance Commissioner to recover damages if the licensee is convicted of fraud or unfair practices in connection with the public adjusting business.

I am licensed as a public adjuster in another state. Do I still need the bond?

Yes. Reciprocity under § 1751(c) can waive the Delaware examination, but the $20,000 bond in § 1752 applies to every applicant.

Is there a limit on what I can charge a client?

Yes. Under § 1756 the fee cannot exceed 2.5% of the first $25,000 of the client's total insurance recovery, and can be up to 12% of the recovery above $25,000.

How is the premium set?

The surety underwrites the applicant, weighing personal credit most heavily along with adjusting experience and any complaint or claims history. The bond amount is fixed at $20,000, so credit drives most of the quote. Applying online shows the actual price.