Which entity typically requires an insurance adjuster to have a valid license?

An insurance adjuster is required to have a valid license primarily because of the regulatory framework established by the state government. Each state has its own Department of Insurance or similar regulatory body that sets the standards for licensing insurance professionals. This includes establishing criteria for training, examination, and continuing education that ensure adjusters are competent to assess claims fairly and accurately.

Licensing by the state serves to protect consumers by ensuring that only qualified individuals can evaluate insurance claims, which can involve significant amounts of money and complex legal issues. This regulatory authority also allows the state to enforce compliance with legal and ethical standards within the insurance industry.

While insurance companies may establish their own requirements for employment or contracting adjusters, it is the state government that has the ultimate authority to issue licenses and regulate the practice of insurance adjusting. Local municipalities generally do not have a role in licensing insurance adjusters, and the Federal Insurance Commission does not typically oversee individual adjuster licensing but instead focuses on broader regulatory oversight. Thus, the requirement for a valid license primarily stems from state governmental regulation.