Do You Need to Attend a Public Adjuster Exam Course?

No, you do not necessarily need to attend a public adjuster course. You can apply for and attend the PA exam even without a prep course. However, passing the licensing exam without professional prep is excruciatingly hard.

While the legal answer in states like Illinois is surprisingly lenient, the practical answer is much more complex. This guide explores the licensing requirements and why an adjuster course is often the difference between a passing grade and a failed initial application.

Is a Pre-Licensing Course Mandatory?

Individuals seeking an insurance producer license for lines like Life, Health, or Property must complete 20 hours of pre-licensing education per line. However, the Illinois Department of Insurance (IDOI) has distinct rules for those seeking a public adjuster license.

Unlike other professional licensure processes, the IDOI does not require candidates to attend a pre-licensing course to qualify for the public adjuster exam. Legally, you can:

• Apply online for the exam via the Pearson VUE website.
• Pay the $92 licensing fees.
• Sit for the state exam through self-study alone. 

However, just because a pre-licensing education course isn't legally required by the IDOI does not mean the path to becoming a licensed public adjuster is easy.

Why the Public Adjuster Exam is Not Easy

The public adjuster exam is a formidable hurdle, with first-time fail rates often hovering around 80%. While the IDOI doesn't force you into a classroom, the examination to qualify covers a staggering range of topics.

Mastering all these concepts without professional help is a tall order even for the smartest people. Want to know why? We've explained the reasons!

1. Mastering Property and Casualty Concepts

You must understand the intricacies of property and casualty insurance to adjust claims effectively. The exam requires you to determine how much an insurance company should pay based on complex policy language, fire policies, and commercial exclusions. Without an adjuster course, many candidates struggle to grasp how an insurance company should pay a claim legally.

2. Navigating State Statutes and Ethics

The state exam is heavily weighted toward the state’s insurance codes and the Public Adjuster Regulatory Act. You will be tested on licensing requirements, ethical mandates, and the specific language required in a public adjuster contract.

One small error in understanding these statutes can lead to a failing score. You must read and understand the necessary public adjuster terminologies, which is easier said than done.

3. Technical Handling vs. General Knowledge

The knowledge required to pass the exam is very different from the actual skills of an adjuster. The exam focuses on legal definitions, timeframes for insurance claims handling, and insurer obligations rather than just "common sense" field work. This is why in-person training or high-quality online courses are highly recommended by licensed adjusters.

How to Become an Insurance Adjuster: The Licensing Path

If you are ready to become an insurance adjuster who advocates for policyholders, you need to follow a specific sequence. Even without a mandatory pre-licensing course, the process for your initial application is strict.

Step 1: Meet the Basic Licensing Requirements

Before you can apply for a license, you must meet the following licensing requirements:

• Be at least 18 years of age.
• Undergo a background check, which includes being fingerprinted by an Illinois-approved live scan vendor.
• Be determined to be trustworthy and competent by the state.

Additionally, you should prepare for the costs of a PA License.

Step 2: Pass the State Exam

You must register via the Pearson VUE website and pay the $92 examination fee. To pass the state exam, you must achieve a score of 70% or higher. If you fail, you must pay the fee again for each retake.

Step 3: Secure a $50,000 Surety Bond

Effective January 1, 2024, every public adjuster in Illinois must provide proof of financial responsibility in the form of a $50,000 surety bond. This bond ensures the public adjuster complies with all insurance industry regulations.

Step 4: Submit Your License Application

Once you have passed the state exam and secured your bond, you must submit your license application online through the National Insurance Producer Registry (NIPR). The initial application fee is $250.

Maintaining Your License: Renewal and Continuing Education

Once your adjuster license is issued, the work to maintain it begins. Licenses are issued with a specific renewal date and must be managed carefully.

Renewal Period and Fees

In Illinois, a public adjuster license must be renewed annually. You must apply online for your renewal through the NIPR and pay a $250 renewal fee. The renewal period typically begins 90 days before the expiration date.

Continuing Education (CE) Requirements

To qualify for a renewal, public adjusters must be CE compliant. While the general insurance producer requirement is 24 hours of continuing education every two years, public adjusters in Illinois must complete their required hours to maintain their insurance license. At least 3 hours of these courses must be in a classroom or webinar format focused on ethics.

Non-Resident and Reciprocal Licenses

The insurance industry is often mobile, and many independent adjusters or public adjusters hold licenses in multiple states.

• Reciprocal Licenses: If you hold a public adjuster license in your home state, you can often apply for a non-resident license in other states without retaking the state exam, provided the states are reciprocal.
• Designated Home State: If your actual home state does not issue a public adjuster license, you can designate a licensing state as your designated home state to satisfy state licensing requirements elsewhere.

Frequently Asked Questions

Is an adjuster course required by the IDOI?

No, unlike producers, public adjusters are not required to complete a pre-licensing course before taking the state exam. However, courses are available and highly recommended due to the technical nature of the test.

How much does a public adjuster license cost in total?

Direct costs include a $92 exam fee, a $250 application fee, a $50,000 surety bond premium (usually $500 to $1,500), and fingerprinting fees (approx. $60). Total initial costs often range between $900 and $2,000.

Can I adjust claims before I receive my license?

No. You cannot enter into a contract with an insured until your public adjuster license has been issued and your contract forms have been approved by the state.

What happens if I miss my renewal date?

Failure to renew on time may result in late fees or the requirement to pass the state exam again to reinstate your insurance adjuster license.

Conclusion: The Value of Professional Help

Legally, you can attempt to become an insurance adjuster in Illinois without an adjuster course. However, passing the public adjuster exam is difficult to do through self-study alone. That's why a majority of candidates enroll in a public adjuster prep course.

Professional courses cover the distilled knowledge you need, provide realistic practice exams, and boost your confidence. Join our PA exam prep course and gain a foothold in the industry. We prepare you for the exam and everything that comes after it!