If a Public Adjuster loses their bond (surety), what should they do?

When a Public Adjuster loses their bond, the appropriate course of action is to notify the Department of Insurance and turn in their license immediately. This is crucial because the bond is a prerequisite for maintaining a valid license to operate as a Public Adjuster. The bond serves as a financial assurance that the Public Adjuster will conduct their business ethically and to the best interests of their clients. Without an active bond, the validity of the Public Adjuster's operations comes into question, and they are no longer authorized to practice legally.

Notifying the Department of Insurance ensures that the regulatory body is aware of the change in status and can take appropriate actions, which may include revoking the license until a new bond is obtained. It emphasizes the importance of compliance with state regulations governing Public Adjusters, which are designed to protect consumers and uphold the integrity of the profession. This action protects both the Public Adjuster and their clients by ensuring that only licensed and bonded individuals are conducting business in this capacity.

Other options may suggest actions that could lead to legal complications or non-compliance with state regulations. For instance, notifying the client’s insurance company may not address the immediate legal implications of operating without a bond. Posting a new bond is necessary, but it must be done through the