Surety Bond Encyclopedia

Public Adjuster ($50,000) Bond - Statewide in Virginia

Brief Summary

Virginia does not scale this bond to the size of your practice. Every public adjuster license, whether held by a person or a firm, carries its own $50,000 bond. Keeping it in force without a gap is what protects the license, because a lapse sends you back through prelicensing from the start.

Va. Code 38.2-1845.2 requires every public adjuster applicant, and every business entity licensed as a public adjuster, to attest before licensing that it holds a $50,000 bond in favor of the Commonwealth, written by a corporate surety licensed by the Commission on the form the Commission prescribes. The bond must stay in force for as long as the license remains in effect and cannot be terminated without 60 calendar days' written notice to the Commission.

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How to Apply for a Public Adjuster ($50,000) Bond:

Pass the Virginia public adjuster exam within 183 days before applying.
Order the $50,000 bond on the form prescribed by the Commission, in the exact name being licensed.
If a firm is being licensed, order a separate $50,000 bond in the entity's name.
Attest on the license application that the bond is in force.
Submit fingerprints and the nonrefundable application fee.
Before each bond expiration date, file a certification or attestation that the new bond is in effect.

Detailed Information About the Virginia Public Adjuster ($50,000) Bond:

One flat amount, and often two bonds

The figure is $50,000 and there are no tiers. What people miss is that the statute repeats the requirement for business entities. An adjusting firm attests to its own $50,000 bond, and each individual adjuster attests to theirs. The firm must also designate a Virginia licensed public adjuster to be responsible for its compliance.

Nonresidents are not excused. Va. Code 38.2-1845.5 requires the same attestation and the same $50,000 bond from an applicant licensed in another state.

How the bond is filed

Virginia works on attestation. Before the license issues, the applicant attests that the bond is in place and will be kept in force. The bond itself must run in favor of the Commonwealth, be written by a corporate surety licensed by the Commission, and be on the form the Commission prescribes. It is conditioned on the public adjuster conducting business under the license in accordance with Virginia law.

A lapse ends the license

If the bond reaches its expiration date and the adjuster has not filed a certification or attestation that a new bond is in effect, the license terminates. The adjuster then has to satisfy every prelicensing requirement again to apply for a new license. A surety that wants to end the bond must file at least 60 calendar days' written notice with the Commission.

Who is exempt

Va. Code 38.2-1845.3 excludes adjusters working for insurers, independent adjusters contracting with insurers, attorneys licensed in Virginia, people employed only to gather facts or give technical help to a licensed public adjuster such as photographers, estimators, private investigators and engineers, motor vehicle repair shop estimators, and anyone settling subrogation claims between insurers.

Other rules that come with the license

Applicants must be at least 18, pass the public adjuster exam within 183 days before applying, and submit fingerprints. Individual licenses renew every two years based on birth month, and business entity licenses renew every two years by May 1. After a catastrophic disaster, fees are capped at 10 percent of the insurance settlement proceeds, and if the insurer pays or commits to pay policy limits within 72 hours of the loss being reported, the adjuster cannot take a percentage fee.

Eligibility and Requirements for a Virginia Public Adjuster ($50,000) Bond:

Obligee: the Commonwealth of Virginia.
A corporate surety licensed by the Commission.
Bond amount of $50,000, the same for individuals, business entities and nonresidents.
At least 60 calendar days' written notice to the Commission before the bond can be terminated.
Bond kept in force for as long as the license remains in effect.

Virginia Public Adjuster ($50,000) Bond FAQs:

My firm is bonded. Do I still need my own bond?

Yes. Va. Code 38.2-1845.2 requires each individual applicant and each business entity to attest to its own $50,000 bond in favor of the Commonwealth. The firm's bond does not stand in for yours.

What happens if my bond renewal slips past the expiration date?

If you have not filed a certification or attestation that a new bond is in effect before the old one expires, the license terminates. You would then have to meet every prelicensing requirement again to apply for a new license.

I am licensed as a public adjuster in my home state. Do I need the Virginia bond?

Yes. Va. Code 38.2-1845.5 requires nonresident applicants to attest to the same $50,000 bond, on the Commission's form, and keep it in force for as long as the Virginia license is active.

Do independent adjusters working for insurers need this bond?

No. The public adjuster article does not apply to an adjuster acting as an independent contractor for one or more insurers, or to an adjuster representing an insurer. The bond is for adjusters who work on behalf of the policyholder.

How is the premium set?

The surety prices the $50,000 bond from your personal credit, your licensing and claims history, and for a firm, its financial condition. You get a firm quote once the application has been reviewed.