What Is The Purpose Of A Public Insurance Adjuster?

A Public Insurance Adjuster is an individual who acts in the best interests of an individual that’s insured or another PIA for indirect, direct or other compensation acts.

A PIA can also be described as an individual who assists, advises or adjusts, investigates, settles, solicits business or advertises an insured individual with a settlement of claims for damage or loss under any insurance policy or private property.

One who is responsible to the people when affecting or negotiating damage covered by any insurance policy or settlement of a claim (s) covering personal or real property.

Must One Be Licensed To Be A PIA?

Yes. According to Texas laws and regulations, you are prohibited from working as a PIA or holding yourself out to become one unless you hold a license from the administrator under the section 4102.053 and 4102.054.

The only exception to this law is a state-licensed attorney who has observed provisions of Section 4102.053(a) (6), an individual certified as a personal lines casualty and property agent, and general casualty and property agent the under chapter 4051. And even in this situation, they should be acting on behalf of an insured person in loss related matters under a policy that was issued by the agent.

An attorney who is licensed and therefore is able to practice the law in Texas in compliance with the Section 4102.053 (a) (6) or an individual certified as a personal lines casualty and property agent or general casualty and property agent under the chapter 4051 is also not required to get a different PIA license while working for a client that’s insured in matters related to the loss under the policy that was insured by this particular agent.

A PIA license gives individual adjusting claims the authority to act on behalf of an individual that’s insured for claims concerning coverage of flood, burglary, fire and related coverage and other property claims both personal and real. This also includes loss of income but this is only in the event that the client is under the insurance policy.

PIA’s Should Keep Records

A licensed PIA should keep a clean record of all their transactions in their state. The records must include:

1. Name of the insured
2. Location, amount and date of the loss
3. A copy of contract made by the insured and the licensed PIA
4. Amount and the insurer’s name, the number of every policy covered by loss, and the expiration date.
5. A testimony of the items that have been recorded by the insured from sources that the licensed PIA is familiar with.
6. Total compensation the insured received for the adjustment.
7. A testimony of the disbursed items by the licensed PIA from the recoveries he/she received on the behalf of the insured.

Prohibited Business Related to Roofing

Roofing contractors are prohibited from working as a PIA or advertising themselves for adjusting claims for a property being provided by them. They can, however, offer roofing services even when they do not hold a license in the Texas state.

 The Application Process for a PIA License

To apply for a PIA license in this particular chapter, you must first fill in a form that the administrator approved. The application form is then authenticated and submitted together with a non-refundable fee for license application, as stipulated in Section 4102.066.

Upon confirmation that the applicant meets the license requirements designated in this chapter, and that the fee for the application has been cleared, the administrator will then issue a PIA license to the applicant.  Some of the requirements for license application by the applicant include:

1. 18 years old and above
2. A United States Citizen or has observed with federal laws in regards to the operation of business or employment in the US.
3. A Texas state resident
4. A trustworthy individual with confirmed good moral character. This is to ascertain that the individual will run the PIA business in a fair manner and without causing any harm to the public.
5. Hasn’t received any criminal charges within the last 10 years prior to application for the PIA license in this particular chapter. If he/she has been convicted of any crimes within the ten years before the application then they should have been freed from the blames in relation to the conviction or received a pardon.
6. Is adequately trained or has enough experience when it comes to the valuation of:
   1. Personal and real property values
   2. Damage or physical loss to personal or real property that is covered by insurance.
7. Is knowledgeable of the terms as well as consequences of the different kinds of contracts for insurance which offer insurance cover to personal or real property.
8. Is sufficiently informed and has experience that can be useful to an applicant who wants to carry out a PIA business fairly without causing any harm to the common people or any other individual who has been a PIA client to the applicant.
9. Has done and passed the PIA exams and qualified to be exempted.
10. Has observed the requirements for financial stability as stated under the section 105.
11. Has observed all other necessities under the applicable state laws provided under the section 103including fingerprints upon request.

(b) The administrator could issue a PIA license to any individual who was convicted at least 11 years before they applied for the license. So long as the administrator can verify that the conditions surrounding his/her conviction don’t warrant a rejection of a PIA license in accordance with this chapter.

Financial Responsibility

Public insurance adjusters are required to prove financial responsibility, each PIA applicant is expected to give a surety bond amounting to not less than $10,000. This should be paid to the Texas Department of Insurance on a bond form.

Interested in seeking claim assistance from a public insurance adjuster? Fill out this form below:

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(PIA) stands for Public Insurance Adjuster