The California Department of Insurance issued an emergency declaration to aid in recovery from the wildfires that are devastating the state. The declaration allows for the use of nonlicensed adjusters if certain requirements are met.
California Governor Gavin Newson declared a state of emergency on January 7, 2025, allowing Insurance Commissioner Ricardo Lara to declare an emergency situation. Since there will be an overwhelming amount of claims and likely a shortage of licensed adjusters, insurers may use nonlicensed adjusters if these conditions are met:
- A licensed adjuster, qualified manager, or an insurer authorized to do business in California manages or directs the work performed by nonlicensed adjusters
- Nonlicensed adjusters must register with the Insurance Commissioner within 15 days of adjusting claims related to the wildfires
- All adjusters must be trained on the California Unfair Practices Art, the Fair Claims Settlement Practices Regulations, and all other applicable P&C insurance claims handling laws
A licensed adjuster, qualified manager, or an insurer authorized to do business in California who manages or directs a nonlicensed adjuster can be held liable for violations performed by the nonlicensed adjuster and can face civil penalties.
The emergency declaration can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.