1.2 Qualifications, 40-Hour Pre-Licensing, Character References & Bonding

1.2 Qualifications, 40-Hour Pre-Licensing, Character References & Bonding

Quick Answer: To obtain a New York public adjuster license under N.Y. Ins. Law § 2108, an applicant must be at least 18 years old, demonstrate trustworthiness and competence, complete a 40-hour state-approved pre-licensing course (or qualify via 1 year of recent insurance employment experience), submit 5 certificates of character from non-relatives who have known the applicant for at least 5 years, complete IdentoGO electronic fingerprinting, file a $1,000 bond made to the State of New York, pass the PSI Series 17-62 examination (60 questions, 1 hour, 70% passing score), and pay the license fee ($100 for a license period longer than one year; $50 for one year or less).

Statutory Prerequisites: Trustworthiness and Competence Standard

The statutory threshold for licensing public adjusters in New York is established in N.Y. Ins. Law § 2108(c)(1). The statute authorizes the Superintendent of Financial Services to issue a license only to an individual, firm, association, or corporation that is demonstrated to be:

"...trustworthy and competent to act as an adjuster in such manner as to safeguard the interests of the people of this state and who, or which, has complied with the prerequisites herein prescribed."

Because public adjusters handle client funds, negotiate substantial insurance proceeds, and represent policyholders during vulnerable post-disaster periods, New York enforces strict character, education, and financial security requirements before issuing a license.

Core Eligibility Criteria

• Age Requirement: Every individual applicant and proposed sub-licensee must be at least 18 years of age when the license is issued (§ 2108(c)(3)).
• Residency and No Reciprocity: Residents and non-residents may be licensed, but the PSI candidate bulletin states that there is no reciprocity for adjuster licensing. Every adjuster applicant must pass the New York examination.

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Pre-Licensing Education Mandate vs. Experience Exemption

New York requires prospective public adjusters to acquire comprehensive professional competence before entering the field. Under N.Y. Ins. Law § 2108(e), candidates must satisfy one of two pathways:

                    ┌─────────────────────────────────────────────────────────┐
                    │          Pre-Licensing Qualification Pathways           │
                    └────────────────────────────┬────────────────────────────┘
                                                 │
                         ┌───────────────────────┴───────────────────────┐
                         ▼                                               ▼
       ┌───────────────────────────────────┐           ┌───────────────────────────────────┐
       │       Education Requirement       │           │        Experience Exemption       │
       │    (N.Y. Ins. Law § 2108(e)(1)(B))│           │    (N.Y. Ins. Law § 2108(e)(1)(A))│
       ├───────────────────────────────────┤           ├───────────────────────────────────┤
       │ • 40 hours of classroom or        │           │ • At least 1 full year of regular │
       │   approved self-study instruction │           │   insurance employment            │
       │ • DFS-approved course provider    │           │ • Within the 3 years immediately  │
       │ • Covers statutes, contracts,     │           │   preceding application           │
       │   valuation, ethics, and scoping  │           │ • In sales, underwriting, or      │
       │ • Certificate valid for filing    │           │   claims adjustment               │
       └───────────────────────────────────┘           └───────────────────────────────────┘

The 40-Hour Pre-Licensing Course (§ 2108(e)(1)(B))

The standard route requires completing a 40-hour pre-licensing education course approved by the Department of Financial Services. Providers build their courses around the PSI content outline, which includes:

• New York Insurance Law and DFS Regulations (including 11 NYCRR Part 25 / Regulation 10 and 11 NYCRR Part 216 / Regulation 64).
• The Standard Fire Policy (165 lines under N.Y. Ins. Law § 3404).
• Homeowners, Commercial Property, and Inland Marine policy structures.
• Valuation doctrines: Actual Cash Value (ACV), Replacement Cost Value (RCV), and depreciation methodologies.
• Coinsurance calculations and loss settlement mechanics.
• Regulation 10 compensation, cancellation, and direction-to-pay rules, and professional ethical duties.

Upon successful completion, the provider issues a school certificate that is uploaded with the license application. The PSI candidate bulletin requires the prelicensing course to be completed before taking the licensing examination, and the certificate does not expire.

The 1-Year Experience Exemption (§ 2108(e)(1)(A))

Under N.Y. Ins. Law § 2108(e)(1)(A), an applicant is exempt from the 40-hour pre-licensing course requirement if they have been:

• Regularly employed in an insurance company, agency, or adjusting firm for at least one (1) year;
• Within the three (3) years immediately preceding the application date; and
• Performing substantive duties in sales, underwriting, or claims adjustment.

To use this exemption, the applicant submits the Department's Statement of Employer form, signed by an officer of the employing entity. It documents at least one year of regular employment in responsible duties involving sales, underwriting, or claims during the three years before the application.

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The Five Character Certificates

One of the most unique statutory features of New York public adjuster licensing is the character reference requirement codified in N.Y. Ins. Law § 2108(d)(3). The application must be approved by five (5) certificates of character submitted on the Department's form.

The statute imposes four non-negotiable legal requirements on these certifying individuals:

1. Personal Acquaintance Duration: Each certifying individual must have personally known the applicant for a continuous period of at least five (5) years.
2. Community Connection: Each certifier must be a reputable citizen of the community in which the applicant resides or transacts business.
3. Strict Non-Relationship Prohibition: Certifying individuals CANNOT be related to the applicant by blood or marriage. Certificates from relatives by blood or marriage do not satisfy the statute.
4. Sworn Certification: Each certifier states that they have read the application and believe its statements true, and that the applicant is honest, of good character, and competent. The certificate is subscribed and affirmed as true under penalty of perjury.

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Fingerprinting and Criminal Background Screening

To ensure compliance with the statutory "trustworthy and competent" mandate, every individual applicant must submit to state and federal criminal history checks:

• IdentoGO Electronic Fingerprinting: Applicants with a New York address must be fingerprinted electronically through IdentoGO. Applicants with no New York address who cannot reach an IdentoGO site pre-enroll with IdentoGO and submit a fingerprint card with the fee.
• State and Federal Screening: Under § 2108(d)(2), the Superintendent compares the fingerprints with records of the New York State Division of Criminal Justice Services (DCJS), and they may also be submitted to the FBI for a national criminal history check.
• Statutory Disqualifications: Applicants must disclose all prior felony convictions, misdemeanor convictions, and pending criminal charges. Under N.Y. Ins. Law § 2108 and § 2110, convictions involving fraud, grand larceny, embezzlement, or breach of fiduciary duty can serve as grounds for license denial. Furthermore, under federal law (18 U.S.C. §§ 1033-1034), anyone convicted of a felony involving dishonesty or breach of trust may not engage in the business of insurance without written consent from an insurance regulatory official, a "1033 waiver" (Section 2.4).

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The $1,000 Bond Requirement (§ 2108(l))

Under N.Y. Ins. Law § 2108(l), no adjuster's license or renewal license, other than an independent adjuster's, may be issued unless a bond is on file with the Superintendent:

• Penal sum: $1,000.
• Obligee: the bond is made to the State of New York. It is approved as to form by the Attorney General and as to sufficiency of security by the Superintendent.
• Condition: faithful performance by the licensee and all sub-licensees named in the license of their duties as adjusters.
• Recovery: the bond must authorize the State to recover the penal sum if the adjuster or a sub-licensee is guilty of fraudulent or dishonest practices in the adjusting business, or is convicted under Penal Law article 150 (arson).
• Term: DFS requires the bond to cover the licensing period, from the date the license is issued to its expiration date. Independent adjusters no longer file a bond.

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Business Entities and Sub-Licensees (§ 2108(c)(2), (k))

A public adjusting firm, association, or corporation may be licensed. A corporate license may name as sub-licensees only its officers and directors, and a firm or association license only its individual members. Each sub-licensee must personally qualify (age, examination, fingerprints, character certificates), a fee is paid for each, and each may act as a public adjuster only on behalf of the licensed entity. Additional officers, directors, or members are added by a supplemental license. Entity applicants must also prove the filing of the partnership, corporation, LLC, or trade name with the Department of State or a county clerk.

Temporary Permits Are for Independent Adjusters Only (§ 2108(h), (n))

The Series 17-62 outline lists temporary adjuster permits, and the key point is the contrast:

• § 2108(h): a person with at least five years of claims experience as an insurer employee (or a qualifying auto body estimator) who has applied for an independent adjuster license may receive a temporary permit while the application is pending, for no more than 120 days.
• § 2108(n): to handle widespread losses from a conflagration or catastrophe, the Superintendent may issue a temporary permit for up to 120 days, renewable as needed, to a resident or non-resident, on application by an authorized insurer that certifies the person is qualified to act as an independent adjuster on its behalf.

There is no temporary public adjuster permit. A person who represents policyholders after a New York catastrophe must hold a New York public adjuster license, and New York has no reciprocity for adjusters.

Examination Administration and Licensing Logistics

Testing and application processing in New York are structured under formal administrative protocols:

Candidates must present one valid, unexpired government-issued photo identification whose name matches the registration. The examination is closed book, and personal electronic devices and handheld calculators are prohibited in the testing room. After passing, the applicant submits the online application, the license fee, the IdentoGO fingerprint confirmation, the prelicensing school certificate (or Statement of Employer), the five certificates of character, and the $1,000 bond.