ADJUSTING CLAIMS DURING A CATASTROPHE

Arizona Revised Statutes (ARS) § 20-321.01(E) allows an insurance company to send to Arizona a person who is licensed or permitted to act as an adjuster in the adjuster’s home state to investigate or adjust a particular loss under an insurance policy or a series of losses resulting from a catastrophe common to all those losses.  The following answers a few frequently asked questions regarding this law.

  • What type of adjuster is allowed to handle catastrophe claims? Only a company adjuster (an employee of an insurer) or an independent adjuster (an independent contractor utilized by an insurer) may adjust catastrophe claims without an Arizona insurance adjuster license.  A public adjuster (acting on behalf of an insured) cannot. 
  • How do I apply for an "emergency adjuster" license? Arizona does not issue emergency adjuster licenses. Furthermore, neither the insurer nor the adjuster needs to notify the ADOI when the insurer sends the adjuster to Arizona to adjust claims on the insurer’s behalf. 
  • What does the insurer need to do to send a person who is not licensed by Arizona as an insurance adjuster to investigate or adjust catastrophe loss claims in Arizona? The insurer (not the Department of Insurance) needs to determine that a condition specified in ARS § 20-321.01 is satisfied and needs to send to Arizona a person who meets the qualifications in ARS § 20-321.01(E). The insurer may want to consult its legal counsel to help make this determination.

For their own protection, insurers should use qualified salaried employees or Arizona-licensed insurance adjusters to the extent possible before involving persons who do not hold an Arizona insurance adjuster license.