It’s been coming for a while. Florida started several years ago, and in September 2012 the Texas Department of Insurance began interpreting its licensing rules to require that it would no longer issue an adjuster license to any individual who is resident of a state that also requires licensure.
This means that residents of states that historically flowed hundreds of adjusters to Texas for licensure, like Louisiana, Alabama, Indiana, Kentucky and others, must now secure their “first” license in their home state. Then, and only then, will they be able to secure “non-resident licensure” in states like Texas, Florida and others through reciprocity.
This came a quite as surprise to many, especially those who had applications pending with TDOI when they changed their minds. Unfortunately, as is the sad truth about our regulatory bodies, there was and still is little if any communication to the public of this restriction.
So, if you already have your non-resident Texas license, what’s the big deal? The answer is that, if a non-resident adjuster lives in a state that in the past several years began to require licensure (e.g. Louisiana, Indiana, Alabama, Kentucky, et al.), it can be a REALLY BIG DEAL…and one that could result in a very costly mistake, terms of both time and money, for the unknowing adjuster.
The Impact on CE
The best way to illustrate this point is with a true story…
Paul Smith had been an adjuster for more than 30 years, licensed in Texas and a dozen or more other states for most of his career. Paul was a resident of Indiana for most of his life and as such, he had always followed the CE rules of Texas as his “home state” for licensure. In June of 2013 he received a letter from the State of Indiana that his adjuster’s license was in jeopardy for failure to abide by Indiana’s CE requirement. Paul was flabbergasted. He had only recently completed this 30 CE hours required by Texas. Upon further examination, he found that:
- Indiana didn’t care about his completion of Texas CE. Those courses weren’t approved for Indiana CE. He must comply with Indiana CE “or else”, and, as a resident of Indiana, he was no longer required to secure Texas CE; and,
- Because Texas was reciprocal with Indiana, and only cared that Paul maintain his Indiana license “in good standing”, if he lost his Indiana license, he would not only lose his Texas license, he could lose his licensure in all of the other states as well.
The Moral of the Story…
Certainly, those who live in states that still do not require adjuster licensure have nothing to worry about. Whether their “declared home state” license is in Texas, Florida, or another state, nothing changes (at least for now).
Since most of the people who may see this article will already have a license, this important message may not reach those who are interested in seeking licensure. One cannot depend on the Texas and Florida regulators to get the message out…not even in their applications, or their instructions for securing licensure. If it’s going to happen at all, it must be by word of mouth.
If you talk to or hear of someone looking to secure the Texas or Florida license, let them know that if their resident “home” state requires a license, they must get that first.
Adjusters with Alabama, Indiana, Kentucky, and Louisiana Licenses…
If you are a “resident” of one of these states, you must comply with its CE rules — not Texas. If you take Texas CE thinking that you are satisfying all of your CE requirements, you are wrong, and you will either have to repeat the task again. Don’t make the mistake Paul made…learn by it.