2.1 Florida Adjuster License Types and Employment Relationships
Key Takeaways
- Florida classifies adjusters into distinct license types: the 6-20 Resident All-Lines Adjuster, the 7-20 Non-Resident All-Lines Adjuster, the 70-20 Designated Home State Adjuster and the 3-20 Public Adjuster.
- Under F.S. § 626.864(2) the same individual may not be concurrently licensed as a public adjuster and an all-lines adjuster, and § 626.864(3) allows an all-lines adjuster only one appointment type at a time.
- Company employee adjusters under F.S. § 626.856 represent only their employing insurer, while independent adjusters under F.S. § 626.855 are self-appointed or appointed by a licensed adjusting firm and work for multiple insurers.
- A public adjuster must maintain a $50,000 surety bond and is paid by the policyholder under statutory fee caps, which is why Florida bars the dual license.
- F.S. § 626.874 lets DFS issue catastrophe or emergency adjuster licenses for the period of emergency it determines, to applicants certified as qualified by an authorized insurer or licensed independent adjusting firm.
Florida Adjuster License Types & Qualifications
Quick Answer: Under Chapter 626 of the Florida Statutes, Florida issues specific adjuster licenses including the 6-20 Resident All-Lines Adjuster, 7-20 Non-Resident All-Lines Adjuster, 70-20 Designated Home State (DHS) Adjuster, and 3-20 Public Adjuster. Under F.S. § 626.864(2) the same person may not concurrently hold an all-lines license (6-20/7-20) and a public adjuster license (3-20). Candidates can waive the state examination by holding one of the department-approved adjuster designations listed in F.S. § 626.221(2)(j) (such as the ACA, CA, CALA, or UCC), or by qualifying through one of the other statutory exemption routes. Crucially, a license alone does not authorize claims work—an adjuster must secure an active primary appointment under F.S. § 626.112.
In Florida, anyone who investigates, negotiates, or settles insurance claims must be properly credentialed under the Florida Insurance Code. The state enforces precise licensing classifications based on state residency, employment representation, and lines of insurance authority. Understanding these statutory distinctions is vital for passing the licensing examination and practicing within Florida's legal boundaries.
Florida Adjuster License Classifications
Florida does not offer a single generic insurance license. Instead, the Department of Financial Services (DFS) administers specific alphanumeric license prefixes indicating the licensee's residency status and adjusting authority.
FLORIDA ADJUSTER LICENSES
│
┌─────────────────────────────────┼─────────────────────────────────┐
▼ ▼ ▼
6-20 RESIDENT 7-20 NON-RESIDENT 3-20 PUBLIC
ALL-LINES ALL-LINES ADJUSTER
• Florida residents • Non-resident adjusters • Represents insureds
• Property, casualty, • Licensed in reciprocal states • Fiduciary to policyholder
surety, workers' comp or passed FL exam • $50,000 surety bond
• Represents insurer • Represents insurer • STRICT CONCURRENT
or adjusting firm or adjusting firm DUAL-LICENSE BAN
1. The 6-20 Resident All-Lines Adjuster License
The 6-20 Resident All-Lines Adjuster license is the cornerstone credential for Florida claims professionals. It authorizes a bona fide Florida resident to adjust all classes of insurance claims, including:
- Property insurance (residential, commercial, dwelling, flood)
- Casualty and liability insurance (auto physical damage, bodily injury, commercial general liability)
- Workers' compensation claims
- Inland and ocean marine risks
- Surety and fidelity bonds
- Health insurance claims (disability income, accidental injury)
A 6-20 licensee may act as either a company (staff) adjuster or an independent adjuster, depending on their primary appointment.
2. The 7-20 Non-Resident All-Lines Adjuster License
The 7-20 Non-Resident All-Lines Adjuster license is issued to individuals who reside outside Florida in a state that licenses adjusters, provided that state maintains licensing reciprocity with Florida or the applicant successfully passes the Florida non-resident adjuster examination.
3. The 70-20 Non-Resident Designated Home State (DHS) Adjuster License
Many states (such as Pennsylvania, Ohio, Massachusetts, New Jersey, Virginia, and Tennessee) do not license independent or company property and casualty adjusters. Residents of these non-licensing states who wish to adjust claims across the country face severe regulatory hurdles. Florida addresses this through the 70-20 Designated Home State (DHS) license. A non-resident whose home state lacks adjuster licensing can declare Florida as their "designated home state," complete Florida's qualification requirements, and utilize Florida's extensive interstate reciprocity to adjust claims nationwide.
4. The 3-20 Public Adjuster License
A 3-20 Public Adjuster represents an entirely different legal relationship. While 6-20 and 7-20 adjusters represent the financial interests of insurance companies, a public adjuster is hired directly by the insured policyholder to evaluate, prepare, and negotiate a first-party property claim against their insurance company.
- Fiduciary Duty: The public adjuster owes an exclusive fiduciary duty to the policyholder.
- Statutory Bond Requirement: Every licensed public adjuster must file and maintain an active $50,000 surety bond with the DFS to protect the public against financial malfeasance.
- Fee Restrictions: Under F.S. § 626.854, public adjuster compensation is capped. On non-catastrophe claims, the fee cannot exceed 20% of the claim payment. On claims arising from a declared state of emergency (such as a hurricane), the fee is strictly capped at 10% of the claim proceeds paid by the insurer during the first year following the disaster.
Exam Trap: Absolute Dual-Licensing Prohibition!
Under F.S. § 626.864(2), the same individual may not be concurrently licensed as a public adjuster (3-20) and an all-lines adjuster (6-20 or 7-20). (F.S. § 626.8795 is a different rule — it bars a public adjuster from having a financial interest in the repair or salvage of property they adjust.) An adjuster cannot represent insurance companies on weekdays and homeowners on weekends. Furthermore, an adjuster cannot surrender an all-lines license to represent a policyholder on the very same loss they previously handled for an insurer. Violating this separation is grounds for mandatory license revocation and administrative fines.
Employment Relationships: Staff vs. Independent Adjusters
Florida Statutes distinguish between how an adjuster is employed and compensated in the marketplace:
Company Employee (Staff) Adjuster (F.S. § 626.856)
A company adjuster (commonly called a staff adjuster) is a direct employee of an authorized insurance company. They receive regular salary or hourly wages from the insurer and adjust claims exclusively for that company (or affiliated group carriers). Company adjusters possess settlement authority delegated directly by the insurer's corporate claims management.
Independent Adjuster (F.S. § 626.855)
An independent adjuster is an independent contractor or an employee of an independent adjusting firm or third-party administrator (TPA). Independent adjusters are contracted on a fee-for-service basis by multiple insurance companies to handle overflow claims, specialized commercial losses, or catastrophe surges. An independent adjuster acts as the authorized agent of the insurer that retains them for that specific assignment.
Emergency and Catastrophe Adjusters (F.S. § 626.874)
When a catastrophic hurricane or severe natural disaster strikes Florida, the volume of property damage claims instantly overwhelms resident claims personnel. Under F.S. § 626.874, the Department of Financial Services is authorized to issue Emergency Adjuster Licenses on an expedited basis.
Statutory Rules for Emergency Licenses
- Trigger: A declared state of emergency or major catastrophic disaster recognized by the Governor or the DFS.
- Application: An authorized insurance company, self-insurer, or licensed independent adjusting firm must submit an emergency application to the DFS certifying the applicant's competence.
- Eligibility: F.S. § 626.874(1) requires the person to be at least 18, a U.S. citizen or legal alien with work authorization, not already a licensed adjuster, and designated and certified as qualified by an authorized insurer or licensed independent adjusting firm. Florida residency is not required, and no state examination is required.
- Duration: F.S. § 626.874(1) does not fix a number of days. The department issues the license "for the purposes and under the conditions and for the period of emergency as it shall determine," so the expiration date is set by the DFS order or emergency declaration under which the license was issued. Do not assume a fixed term on the exam.
- Supervision: The sponsoring insurer or adjusting firm remains legally and financially responsible for all claim adjustments performed by their emergency adjusters.
A licensed 6-20 Company (Staff) Adjuster wishes to increase income by offering claim preparation and negotiation services directly to homeowners on weekends for a percentage of the settlement. How does Florida law govern this scenario?
Following a catastrophic hurricane that makes landfall on the Florida coast, an out-of-state adjusting firm needs to rapidly mobilize adjusters who do not hold Florida licenses. Which statutory mechanism permits these individuals to legally adjust claims in Florida?