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In North Dakota, a new bill has been established requiring public adjusters to be licensed and have a minimum of $20,000 surety bond. As of recent, the previous allowance of those who held a consultant license would be granted the authority to act as a public insurance adjuster, has now been rescinded by this legislation. North Dakota public adjusters’ bonds are now mandatory.
Both individuals and businesses are eligible to apply for a public adjuster license.
A public insurance adjuster surety bond is similar to other surety bonds; a legally binding agreement between three parties:
The primary party who will perform the contractual obligation
The party who is the recipient of an obligation (in this instance, The North Dakota Insurance Department)
Who assures the obligee that the principal can perform the task
The North Dakota Insurance Department requires North Dakota public adjusters to provide a $20,000 bond to guarantee adherence with all applicable rules and regulations. If the adjuster inflicts financial harm to consumers, a claim may be made against the adjuster’s bond. If the claim is valid, reimbursement up to the full amount of the bond is prepared and required to be repaired to the surety by the adjuster. Additionally, the new law requires 60 days’ notice for canceling the bond.
Requirements to become a North Dakota licensed public adjuster include
For businesses, the licensing process is different. The business entity must submit and complete a business entity application and pay a $150 application fee.
A public adjuster bond in North Dakota costs 1% of the total bond amount, therefore, for a $20,000 surety bond, applicants will pay $200. All first-time applicants are approved at the same rate unless the adjuster has a history of claims, they may not be approved at all.
Anyone specifically not listed in chapter 26.1-26.8-08. of the North Dakota Century Code is required to have a $20,000 surety bond when acting in the capacity of a public adjuster and a license is invalid without one.
A surety bond is a guarantee that you’ll be covered and receive what you’ve paid for. For inquiries about surety bonds, and surety bond requirements, call The Surety Place today.