North Dakota Public Adjusters Now Need Surety Bonds

North Dakota Public Adjusters Now Need Surety Bonds

Passed earlier this year and effective on August 1, 2019, House Bill 1219 established the requirement that North Dakota public adjusters are to be licensed and have a $20,000 surety bond. Previously, those who held a consultant license were granted the authority to act as a public insurance adjuster. However, that allowance has been rescinded by this legislation. Pursuant to the new legislation, both individuals and businesses are eligible to apply for a public adjuster license.

What is a public insurance adjuster surety bond?

Similar to other surety bonds, a public adjuster bond is a legally binding agreement between the following three parties:

  • The principal is the public adjuster required to have a surety bond
  • The obligee is the entity responsible for licensing the principal. In this instance, the North Dakota Insurance Department is the obligee.
  • The surety is the company that issues the bond on behalf of the adjuster.

North Dakota public adjusters are required to provide the Insurance Department with a $20,000 to guarantee their adherence with all applicable rules and regulations, especially those found in chapter 26.1-26.8-15. of the North Dakota Century Code, which establishes the standards of conduct to be met by licensed public adjusters.

If the adjuster acts in such a manner that results in financial harm to consumers, a claim may be made against the adjuster’s bond. If the claim is found to be valid, reimbursement is available up to the full amount of the bond, which is then required to be repaid to the surety by the adjuster.

How much does a public adjuster bond cost in North Dakota?

A public adjuster bond in North Dakota costs 1% of the total bond amount, meaning applicants will pay just $200 for their $20,000 surety bond. These bonds do not require underwriting, meaning first-time applicants are all approved at the same rate. However, if an adjuster has a history of claims, they will almost certainly not be approved at this rate, if they are approved at all.

Does the surety bond requirement apply to all North Dakota public adjusters?

Yes, anyone not specifically listed in chapter 26.1-26.8-08. of the Century Code is required to have a $20,000 surety bond when acting in the capacity of a public adjuster, as a license is invalid without one. Any individual or business that violates subsection 1 or 2 of chapter 26.1-26.8-03. is guilty of a Class C felony.

What other requirements are there to become a licensed public adjuster?

Along with obtaining a $20,000 surety bond, there are several additional steps applicants must take prior to receiving an individual license.

  • Pass the public adjuster examination
  • Submit to a background check, including fingerprinting
  • Complete the appropriate application and pay a $100 fee

The licensing process differs slightly for businesses applying for a public adjuster license. They must submit a completed business entity application and pay a $150 application fee. Businesses must also designate a responsible licensed producer.

Ready to get your surety bond to become a North Dakota public adjuster?

The experts at are licensed to issue public adjuster bonds in all 50 states, meaning they can get North Dakota public adjusters the bond they need. Apply online in minutes by visiting or get answers to any questions you may have by calling 1 (800) 308-4358 today.

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About the Author

Jon Gottschalk
Jon Gottschalk is the Senior Marketing Director for and regularly blogs at the Surety Bond Insider to keep consumers informed on new legislation and updates in the commercial surety industry. He is also a licensed property & casualty insurance producer in Missouri.