1.2 License Maintenance, the Bond & Certificate Exemptions, Grounds for Revocation (§ 2110) & Temporary Permits
Key Takeaways
- NY Insurance Law § 2108(l)(1) requires the $1,000 bond only for adjuster licenses “other than an independent adjuster’s license,” and § 2108(d)(3) excepts independent adjusters from the five certificates of character — both are public adjuster prerequisites.
- Every adjuster license expires December 31 of an even-numbered year; the fee is $50 per year or fraction of a year, so $100 for a full two-year term and $50 for a year or less.
- Independent adjusters have no continuing education requirement; the 15-credit-hour biennial obligation in § 2108(r) reaches public adjusters only.
- Licensees must report address changes within 30 days (11 NYCRR 26.6), administrative actions within 30 days of final disposition, and criminal prosecutions within 30 days of the initial pretrial hearing (§ 2110(i)–(j)).
- Under § 2110(b) a hearing must be held not less than ten days after notice, and § 2127 caps civil penalties at $500 per offense and $2,500 in the aggregate in any one proceeding.
License Maintenance, the Bond & Certificate Exemptions, Grounds for Revocation (§ 2110) & Temporary Permits
Exam Focus: Pay close attention to statutory figures: the two-year license term expiring December 31 of even-numbered years, the $50-per-year fee, the absence of continuing education for independent adjusters, the 30-day address-change and reporting-of-action rules, the 10-day hearing notice under § 2110(b), the $500/$2,500 penalty ceilings in § 2127, and the 120-day limit on temporary permits under § 2108(h) and § 2108(n). Know which prerequisites the independent adjuster is exempt from.
The $1,000 Bond: A Public Adjuster Requirement, Not an Independent Adjuster Requirement
This is the single most frequently mis-taught point in New York adjuster prep material, and it is worth memorising the statutory language.
NY Insurance Law § 2108(l)(1) provides:
“No adjuster's license or renewal license, other than an independent adjuster's license, shall be issued to any applicant unless there shall be on file with the superintendent of financial services a bond, executed by such applicant and by approved sureties, in the penal sum of one thousand dollars conditioned on the faithful performance by such licensee and by all sub-licensees named in such license, of their duties as such adjusters.”
The words “other than an independent adjuster's license” do the work. The $1,000 penal-sum bond is a public adjuster prerequisite. The Department of Financial Services says the same thing on its Insurance Adjuster Licensing page: “A bond is no longer required of Independent Adjuster applicants.”
Where a bond is required (public adjusters), the statutory mechanics are still testable:
- Penal sum: $1,000, covering the full licensing period.
- Approval: approved as to form by the Attorney General and as to sufficiency of security by the Superintendent (§ 2108(l)(2)).
- Obligee: the bond is made to the State of New York and specifically authorises the State to recover the penal sum if the adjuster or a sub-licensee is guilty of fraudulent or dishonest practices, or is convicted under Penal Law Article 150 (arson) (§ 2108(l)(3)).
Certificates of Character: Also a Public Adjuster Requirement
§ 2108(d)(3) requires that an adjuster application be approved by not less than five reputable citizens of the applicant's community, each certifying five years' personal acquaintance, honesty, good character and competence, and no blood or marriage relationship — but the paragraph is prefaced “Except in the case of an application for a license to act as an independent adjuster.” DFS states: “Certificates of Character are no longer required for Independent Adjuster applicants.”
| Prerequisite | Independent Adjuster | Public Adjuster |
|---|---|---|
| Written examination | Required (§ 2108(f)) | Required (§ 2108(e)) |
| $1,000 surety bond | Not required (§ 2108(l)(1) carve-out) | Required |
| Five certificates of character | Not required (§ 2108(d)(3) carve-out) | Required |
| 40 hours prelicensing / 1 year experience | Not required | Required (§ 2108(e)(1)) |
| Fingerprints | Required (§ 2108(d)(2)) | Required |
| Continuing education | None | 15 credit hours biennially (§ 2108(r)) |
License Term, Renewal & Administrative Compliance
Biennial Licensing Cycle
Every adjuster's license issued under § 2108 runs for a term expiring on December 31 of an even-numbered year (§ 2108(j)(1)). A brand-new applicant may be issued a longer first term so that the licence lands on that cycle, but the statute caps that initial term at 30 months.
Renewal Process and Fees
Renewal is filed electronically before the December 31 expiration date. The fee under § 2108(i)(1) is $50 for each year or fraction of a year the license will be valid — so $100 for a full two-year term and $50 for a term of one year or less. A single independent adjuster license fee covers any one or more of the various types of independent adjuster licenses the Department issues (§ 2108(i)(3)). No license fee is charged to qualifying veterans (§ 2108(i)(2)). A replacement for a lost or destroyed license costs $15 (§ 2108(q)).
If a renewal application is filed by December 31 of the expiration year, the existing license stays in full force until the renewal is issued, or until five days after the Superintendent refuses it and gives notice (§ 2108(j)(2)).
Continuing Education (CE) Exemption
A frequent exam trick. § 2108(r) imposes the 15-credit-hour biennial continuing education obligation on public adjusters; producers and consultants have a parallel obligation under § 2132. Independent adjusters have NO continuing education requirement. Renewal requires only the application and the fee.
30-Day Address Change Requirement
Under Regulation 25, 11 NYCRR 26.6, each licensee must notify the Department of any change of business or residence address within 30 days of the change. Failure to do so is an administrative violation.
Reporting of Actions (§ 2110(i)–(j))
Two separate 30-day reporting duties apply to every adjuster licensee:
- § 2110(i): report any administrative action taken against the licensee in another jurisdiction or by another New York governmental agency within 30 days of final disposition, with a copy of the order or consent order.
- § 2110(j): report any criminal prosecution in any jurisdiction within 30 days of the initial pretrial hearing date, with a copy of the initial complaint and resulting order.
Prohibited Conduct Under Regulation 25 (11 NYCRR 26.5)
Regulation 25 adds two conduct rules aimed squarely at independent adjusters:
- No fee splitting with unlicensed persons. No licensee or sub-licensee may divide a fee, or give any fee, commission or other compensation, to any person, firm or corporation for procuring or assisting in procuring the adjustment of a loss, unless that recipient holds a valid independent adjuster's license.
- No association with revoked licensees. A licensee may not be employed by, or associated with, any person or entity — or any member, officer, director or stockholder of an entity — whose independent adjuster license has been revoked.
Violation of either rule is independent grounds for refusal, non-renewal, suspension or revocation.
Assumed Names (§ 2102(f))
A licensee who transacts business under any name other than the licensee's legal name must notify the Superintendent and obtain the Department's approval of the assumed name before using it.
Disciplinary Grounds and License Revocation (§ 2110)
Under New York Insurance Law § 2110(a), the Superintendent may refuse to renew, revoke, or suspend the license of any adjuster if, after notice and hearing, the licensee or a sub-licensee has:
- Violated any insurance law, regulation, subpoena or order of the Superintendent or of another state's insurance commissioner.
- Provided materially incorrect, misleading, incomplete or untrue information in the license application.
- Obtained or attempted to obtain a license through misrepresentation or fraud.
- Used fraudulent, coercive or dishonest practices, or demonstrated incompetence, untrustworthiness or financial irresponsibility.
- Improperly withheld, misappropriated or converted monies or property received in the course of business.
- Intentionally misrepresented the terms of an actual or proposed insurance contract or application.
- Been convicted of a felony.
- Admitted or been found to have committed an insurance unfair trade practice or fraud.
- Had an equivalent license denied, suspended or revoked in another state.
- Forged another's name on an insurance document, or improperly used notes or reference material during a licensing examination.
- Failed to comply with a child-support order, or failed to pay state income tax or comply with a tax payment order.
- Ceased to meet the requirements for licensure.
Notice and Hearing Procedures
- Notice of Hearing: before revoking or suspending, the Superintendent must give notice to the licensee and every sub-licensee and hold a hearing not less than ten days after that notice (§ 2110(b)).
- Effect on Sub-Licensees: revocation or suspension terminates the authority of all sub-licensees named in the license (§ 2110(d)).
- One-Year Bar: a person whose license is revoked — and any firm in which that person is a member, or corporation in which that person is an officer or director — cannot obtain any license under the Insurance Law for one year after revocation (§ 2110(e)).
- Surrender Does Not Defeat Jurisdiction: the Superintendent retains enforcement authority even if the license has been surrendered, has expired, or has lapsed (§ 2110(h)).
- Judicial Review (Article 78): a final determination is reviewable in New York State Supreme Court by a CPLR Article 78 proceeding.
Civil Monetary Penalties (§ 2127)
In lieu of revoking or suspending a license, the Superintendent may by order require the licensee to pay a penalty:
- Not exceeding $500 for each offense, and
- Not exceeding $2,500 in the aggregate for all offenses in any one proceeding.
If the penalty is not paid within 20 days after the order is mailed, the Superintendent may revoke or suspend the license (§ 2127(b)).
Temporary Permits: § 2108(h) and the Catastrophe Permit Under § 2108(n)
New York has two temporary adjuster permits, both capped at 120 days, and the Series 17-70 exam expects you to keep them apart. Neither one lives in § 2109 — that section governs temporary agent and broker licenses (for example on the death or disability of a licensee) and has nothing to do with adjusters.
§ 2108(h) — Temporary Permit Pending an Application
An applicant who has at least five years' experience adjusting claims as an employee of an authorized insurer, or who holds a valid auto damage estimator's license issued by the Commissioner of Motor Vehicles and applies within 90 days of its expiration, may apply for a temporary permit to adjust claims while the independent adjuster application is pending. The Superintendent may waive the written examination for the permit period if satisfied the applicant is otherwise qualified. The permit may not exceed 120 days, and may be summarily suspended or revoked on 10 days' written notice.
§ 2108(n) — The Catastrophe Permit
To facilitate settlement of claims involving widespread property losses arising out of a conflagration or catastrophe, the Superintendent may issue a temporary permit — to a resident or non-resident — to act as an independent adjuster on behalf of an authorized insurer. The mechanics:
- Insurer Sponsorship: the individual cannot apply. An authorized insurer files the written application and certifies that the named person is qualified by experience and training to adjust claims.
- Duration: a term not exceeding 120 days.
- Renewal: the Superintendent may, in their discretion, renew the permit for such additional term or terms as may be necessary to adjust the claims.
- No Exam: a catastrophe permittee does not sit the Series 17-70.
| Feature | Standard Independent Adjuster License | § 2108(h) Pending-Application Permit | § 2108(n) Catastrophe Permit |
|---|---|---|---|
| Governing Statute | § 2108(c)–(j) | § 2108(h) | § 2108(n) |
| Term | 2 years (expires Dec 31 of even years) | Up to 120 days | Up to 120 days, renewable |
| Exam Requirement | Series 17-70 required (70% to pass) | May be waived by the Superintendent | None |
| Who Applies | The individual | The individual | The authorized insurer |
| Trigger | Ordinary licensing | Application pending + 5 years' carrier experience or MV estimator license | Conflagration or catastrophe |
An applicant is completing the paperwork for a New York independent adjuster license. Which statement correctly describes the surety bond obligation under NY Insurance Law § 2108(l)?
Under New York Insurance Law, when does an independent adjuster license expire, and what continuing education requirements must the adjuster complete prior to renewal?
A conflagration destroys hundreds of homes in Suffolk County and an authorized insurer needs experienced out-of-state adjusters immediately. Which statute authorizes a temporary catastrophe permit, who must file the application, and what is the maximum initial term?