5.3 Hawaii Adjuster Licensing: Definitions, License Types, Qualifications, Examination & Emergency Registration

5.3 Hawaii Adjuster Licensing: Definitions, License Types, Qualifications, Examination & Emergency Registration

Adjuster licensing is governed by HRS chapter 431, article 9. The outline lists its general provisions and definitions (§§ 431:9-101 and 105) and its licensing requirements (§§ 431:9-201, 203, 204, 206-209, 222-227 and 232). This section covers who needs a license and how to get one; 5.4 covers records, trust funds, renewal and discipline; and 5.5 covers public adjuster bonds and contracts.

Who Is an "Adjuster"? (HRS § 431:9-105)

An adjuster is an individual who:

1. acts solely on behalf of either the insurer or the insured, as an independent contractor or as an employee of an independent contractor; and
2. investigates for, reports to, or adjusts for that principal relative to claims arising under insurance contracts.

The definition does not include:

• an attorney who adjusts insurance losses from time to time incidental to practicing law;
• an adjuster of marine losses;
• a salaried employee of an insurer, or a salaried employee of an adjusting corporation or association owned or controlled by an insurer; or
• an individual who acts for a self-insurer, or for an insured that administers its own group insurance contract.

Two license categories follow from the definition:

• Independent adjuster — an adjuster representing the interests of the insurer.
• Public adjuster — an adjuster employed by and solely representing the financial interests of the insured named in the policy.

Staff Adjusters Are Not "Adjusters" Under Hawaii Law

Because salaried insurer employees are excluded from the definition, a staff claims representative employed by the insurer does not need a Hawaii adjuster license. The Insurance Division's emergency registration FAQ confirms the same point: salaried employees of an insurer, or of an insurer-owned adjusting company, handling Hawaii claims from an out-of-state call center do not need to register. An independent contractor in the same call center does.

License Types

The commissioner licenses independent and public adjusters under separate licenses, and the full fee is paid for each. A person may hold both at the same time (§ 431:9-224). However, a concurrently licensed person may not represent both the insurer and the insured in the same transaction (§ 431:9-226(b)). Each license authorizes the holder to act only for its principal — insurers for an independent adjuster, insureds for a public adjuster (§ 431:9-226(a)). The license itself states whether the holder is licensed as an independent or public adjuster (§ 431:9-225).

The limited license in § 431:9-222.5 requires domicile in Hawaii or a state that allows Hawaii residents to adjust there, adequate experience or training in workers' compensation or crop claims, and a passing grade on the workers' compensation or crop examination (or a USDA Risk Management Agency-approved crop exam). It is extended biennially upon successfully passing a reexamination.

Who Must Be Licensed (HRS § 431:9-201)

No person engaging in the business of insurance in Hawaii may act as, be appointed as, or hold himself or herself out to be an adjuster unless licensed by Hawaii (§ 431:9-201(a)). Penalties:

• a civil penalty of up to $5,000 for each factually different violation; and
• if the violation is knowing, a civil penalty of $1,000 to $10,000 for each violation.

Each repetition is a separate violation.

Qualifications (HRS §§ 431:9-203, 9-222)

To qualify for an adjuster's license, an applicant must:

1. be at least 18 years old (§ 431:9-203(a));
2. be domiciled in Hawaii, or in a state that will permit Hawaii residents to act as adjusters in that state;
3. have experience, special education or training in handling loss claims under insurance contracts sufficient to make the individual competent;
4. pass the required examination (§ 431:9-206); and
5. pay the license fees (§ 431:7-101).

A public adjuster must also file the $10,000 surety bond (§§ 431:9-222(b), 9-223).

Licensees must report any change of status — legal name, trade name, business, home or mailing address, phone numbers, email or website — within 30 days (§ 431:9-203(d)). They must also notify the commissioner of a change of business address within 30 days (§ 431:9-228). A trade name requires prior approval.

The Application Process

According to the Insurance Division's licensing instructions:

• Exam first. Pass the Hawaii Adjuster exam (independent or public adjuster license) or the Workers' Compensation Adjuster exam. Crop adjusters do not take an exam.
• Fingerprints (resident applicants). Schedule fingerprinting through Fieldprint Hawaii and enter the Insurance Division's code HI-DCCA-INS so the results reach the division. The application must include fingerprints for state (Hawaii Criminal Justice Data Center) and FBI criminal history checks (§ 431:9-204).
• Apply online through NIPR. Applications and fees are submitted electronically through the National Insurance Producer Registry.
• Attachments within 7 days. A public adjuster's $10,000 surety bond and a crop adjuster's CAPP card must be uploaded within 7 days. Otherwise, the application may be rejected without a refund.
• Fees. The adjuster license fee schedule shows $165 for an initial license and $90 for renewal. The statute sets a $75 issuance fee plus a $45-per-year service fee (§ 431:7-101).

There is no reciprocity for adjusters. All individuals, residents and nonresidents, must pass the Hawaii exam, except crop adjusters; the producer reciprocity rules in article 9A do not apply to adjusters. A former Hawaii adjuster whose license was inactivated for nonpayment may reinstate without an exam within 12 months by paying the unpaid fee plus a double-fee penalty. After that, the person must apply as a new applicant (5.4). The Pearson VUE handbook still mentions a two-year exemption for prior Hawaii licensees, but the division's current reinstatement rule is the 12-month window.

The Pearson VUE Examination

By statute, the commissioner may require a waiting period of up to six months before re-examining an applicant who has failed two previous similar examinations (§ 431:9-208(b)).

Federal Criminal Disqualification: 18 U.S.C. § 1033

Federal law prohibits a person convicted of a felony involving dishonesty or breach of trust (or of an offense under § 1033) from willfully engaging in the business of insurance affecting interstate commerce. The penalty is up to 5 years in prison, a fine, or both (18 U.S.C. § 1033(e)(1)(A)). It is also a crime for an insurance business to knowingly permit such a person to participate (§ 1033(e)(1)(B)). The person may work in insurance only with the written consent of an insurance regulatory official — in Hawaii, the Insurance Commissioner — authorizing the specific engagement (§ 1033(e)(2)). Applicants with such convictions must obtain this consent before acting as adjusters.

Emergency Registration of Nonresident Independent Adjusters (HRS § 431:9-201(b))

After a disaster, Hawaii does not issue emergency licenses. Instead, the commissioner may issue a declaration authorizing the assistance of nonresident adjusters. A nonresident adjuster may then adjust the event's losses without a Hawaii license if:

1. the common losses are a direct result of an event — insured property losses from a sudden, specific natural or manmade disaster, as determined by the commissioner — and are so severe that resident licensed adjusters cannot adjust them within a reasonable time;
2. the nonresident adjuster provides the commissioner a certified copy of a current adjuster license from another state whose licensing requirements are substantially similar to § 431:9-222; and
3. within three working days of the adjuster starting work, the insurer, independent adjusting company or producer using the adjuster provides, on its letterhead, the adjuster's name, Hawaii mailing and business addresses and phone numbers, and permanent home and business addresses and phone numbers.

The registered adjuster may adjust the event's losses for up to 120 days from registration or a shorter period set by the commissioner. Recent declarations illustrate how the commissioner uses this power:

• After the August 2023 Maui wildfires, registrants were first allowed 120 days, and a November 2023 follow-up allowed re-registration for 60-day periods.
• In 2026, declarations followed the March 2026 Kona low and Hurricanes Lala and Lowell. Declaration 2026-4LIC (September 25, 2026), issued for Hurricane Lala, Hurricane Lowell and Tropical Storm/Hurricane Nolo, allows nonresident independent adjusters to work for up to 120 days from registration and gives them 30 days to register. Adjusters already registered under the earlier Lala declarations may continue until January 23, 2027.
• The November 2023 and September 2026 declarations expressly exclude nonresident public adjusters until the commissioner finds a need for them.

The division's FAQ adds that a Hawaii street address (not a P.O. box) and an 808 phone number are required, and that independent contractors handling Hawaii claims from mainland call centers must be registered.