What is Legislative Bill 743?
Nebraska passed Legislative Bill 743—also known as the Nebraska Public Adjusters Licensing Act—into law on March 21, 2018. The intention of the legislation was to establish a license requirement specifically for public adjusters. Previously, some insurance professionals were permitted to conduct the business of a public adjuster due to the license they held. However, as of July 19, 2018, any individual or business entity planning to operate as a public insurance adjuster must first apply with the Director of the Nebraska Department of Insurance.
What are the license requirements created by the bill?
LB 743 requires that prior to applying as a public adjuster, all applicants are at least 18 years old and demonstrate trustworthiness, reliability, and a good reputation. The legislation also requires applicants to have a primary residence or business location in Nebraska, depending on whether they are applying as an individual or a business.
Assuming all pre-licensing requirements are met, the applicant will be required to pass the public adjuster licensing examination, pay a $50.00 fee to the Department, and submit to the Department a $20,000 surety bond. The applicant must also complete the uniform public adjuster license application.
Why is a bond required for adjusters?
The $20,000 surety bond is required as proof of financial responsibility and allows for compensation to be paid out should the adjuster fail to conduct business in accordance with all rules and regulations set forth by the Act, resulting in harm to the state or any of its residents.
The surety company issuing the bond must be a Nebraska authorized insurer, and the bond must remain in effect for the duration of the adjuster’s license. The surety may cancel the bond at any point during the term by providing the Department of Insurance with 30 days’ written notice.
What else is Nebraska LB 743 changing?
Education requirements for licensees
Legislative Bill 743 eliminates the requirement for educational experience before obtaining an insurance producer license. For most applicants, passing the public adjuster examination is sufficient to obtain a license.
Insured Homeowners Protection Act
As a means of protecting both residential contractors and their customers, LB 743 mandates that job parameters of a residential contractor are made very clear to both parties.
Public adjuster license issuance
The Director of the Department of Insurance of the state of Nebraska is ultimately responsible for deciding if a person or business entity may become a licensed public adjuster. The Director is responsible for ensuring all licensees have adequately completed all licensing requirements established by this legislation.
Not sure where to get your bond?
Get your Nebraska public adjuster bond today by visiting SuretyBonds.com or giving us a call at 1 (800) 308-4358.