Prior to issuance of a license as a public adjustor, and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the commissioner through a surety bond and an errors and omissions insurance policy, or other security satisfactory to the department of insurance.

(1) A surety bond executed and issued by an insurer authorized to issue surety bonds in this state shall:

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Terms Used In Tennessee Code 56-6-911

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-6-902
  • Conviction: A judgement of guilt against a criminal defendant.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Department: means the department of commerce and insurance. See Tennessee Code 56-1-102
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fraud: Intentional deception resulting in injury to another.
  • Person: means an individual or a business entity. See Tennessee Code 56-6-902
  • Public adjuster: means any person, other than someone who is employed by an insurance carrier, who, for compensation or any other thing of value, on behalf of the insured:
    (i) Acts or aids, solely in relation to first party claims arising under insurance contracts that insure the real or personal property of the insured on behalf of an insured, in investigating, verifying, substaining, estimating, appraising, determining, presenting, and discussing the value of the claim, and effectuating the resolution of a claim for loss or damage covered by an insurance contract. See Tennessee Code 56-6-902
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(A) Be in the minimum amount of fifty thousand dollars ($50,000);
(B) Be in favor of this state and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in the capacity as a public adjuster;
(C) Not be terminated, unless at least thirty-days’ prior written notice has been filed with the commissioner and given to the licensee; and
(D) Be in a form approved by the commissioner.
(2) The licensed public adjuster shall promptly notify the commissioner upon termination of the bond, unless otherwise directed by the commissioner.
(3) The commissioner may ask for the evidence of financial responsibility at any time the commissioner deems it necessary and proper to protect the rights of Tennessee consumers.
(4) The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes substantially impaired.
(5) The errors and omissions policy shall be executed by and issued by an admitted insurer authorized to issue errors and omissions policies in this state, and shall be in the minimum amount of five hundred thousand dollars ($500,000) per occurrence.
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