KRS 304.9-430: Independent, staff, or public adjuster's license -- Limitation for two

years beginning on April 13, 2026 -- Application by individual or business

entity -- Qualifications -- Evidence of financial responsibility -- Exceptions to

license requirem ent -- Temporary emergency registration following

catastrophe -- Nonresident license.

(1) (a) Except as provided in this section and KRS 304.52 -060, no person shall in

this state act as or hold himself, herself, or itself out to be an independent,

staff, or public adjuster unless then licensed by the department as an

independent, staff, or public adjuster.

(b) Except as provided in paragraph (c) of this subsection and for a period of two

(2) years beginning on April 13, 2026:

1. An application for a pub lic adjuster license shall not be accepted or

approved by the commissioner; and

2. The department shall not issue public adjuster licenses.

(c) A person who has a temporary or apprentice adjuster license in effect on April

13, 2026, may apply for and be is sued a public adjuster license in accordance

with KRS 304.9-432.

(d) A public adjuster license in effect on April 13, 2026:

1. May be renewed by the licensee in accordance with the requirements of

this subtitle; and

2. Shall continue in force until expired , suspended, revoked, or otherwise

terminated.

(2) (a) An individual applying for a resident independent, staff, or public adjuster

license shall make an application to the commissioner on the appropriate

uniform individual application and in a format prescribed by the

commissioner.

(b) An applicant under para graph (a) of this subsection shall declare under

penalty of suspension, revocation, or refusal of the license that the statements

made in the application are true, correct, and complete to the best of the

individual's knowledge and belief.

(c) The commissioner shall not approve an application submitted under paragraph

(a) of this subsection unless the commissioner finds that the individual to be

licensed:

1. Is at least eighteen (18) years of age;

2. Is eligible to designate Kentucky as the individual's home state;

3. Is trustworthy, reliable, and of good reputation, evidence of which shall

be determined through an investigation by the commissioner;

4. Has not committed any act that is a ground for probation, suspension,

revocation, or refusal of a license as set forth in KRS 304.9-440;

5. Has successfully passed the examination for the adjuster license and the

applicable line of authority for which the individual has applied;

6. Has paid the fees established by the commissioner pursuant to KRS

304.4-010; and

7. Is financially responsible to exercise the license.

(3) (a) To demonstrate financial responsibility, a person applying for a public

adjuster license shall obtain a bond or irrevocable letter of credit prior to

issuance of a license and shall maintain t he bond or letter of credit for the

duration of the license with the following limits:

1. A surety bond executed and issued by an insurer authorized to issue

surety bonds in Kentucky, which bond shall:

a. Be in the minimum amount of fifty thousand dollars ($50,000);

b. Be in favor of the state of Kentucky;

c. Specifically authorize recovery of any person in Kentucky who

sustained damages as the result of the public adjuster's erroneous

acts, failure to act, conviction of fraud, or conviction for unfair

trade practices in his or her capacity as a public adjuster; and

d. Not be terminated unless written notice is given to the licensee at

least thirty (30) days prior to the termination; or

2. An irrevocable letter of credit issued by a qualified financial insti tution,

which letter of credit shall:

a. Be in the minimum amount of fifty thousand dollars ($50,000);

b. Be subject to lawful levy of execution on behalf of any person to

whom the public adjuster has been found to be legally liable as the

result of errone ous acts, failure to act, conviction of fraud, or

conviction for unfair practices in his or her capacity as a public

adjuster; and

c. Not be terminated unless written notice is given to the licensee at

least thirty (30) days prior to the termination.

(b) The commissioner may ask for evidence of financial responsibility at any time

the commissioner deems relevant.

(c) If the evidence of financial responsibility terminates or becomes impaired, the

public adjuster license shall:

1. Automatically terminate; and

2. Be promptly surrendered to the commissioner without demand.

(4) (a) A business entity applying for a resident independent or public adjuster

license shall make an application to the commissioner on the appropriate

uniform business entity application an d in a format prescribed by the

commissioner.

(b) An applicant under paragraph (a) of this subsection shall de clare under

penalty of suspension, revocation, or refusal of the license that the statements

made in the application are true, correct, and complete to the best of the

business entity's knowledge and belief.

(c) The commissioner shall not approve an application submitted under paragraph

(a) of this subsection unless the commissioner finds that the business entity:

1. Is eligible to designate Kentucky as its home state;

2. Has designated a licensed independent or public adjuster responsible for

the business entity's compliance with the insurance laws and

administrative regulations of Kentucky;

3. Has not committed an act that is a ground for probation, suspension,

revocation, or refusal of an independent or public adjuster's license as

set forth in KRS 304.9-440; and

4. Has paid the fees established by the commissioner pursuant to KRS

304.4-010.

(5) For applications made under this section, the commissioner may:

(a) Require additional information or submissions from applicants; and

(b) Obtain any documents or information reasonably necessary to verify the

information contained in an application.

(6) A person or business entity who has met the applicable requirements of subsections

(2) to (5) of this section shall be issued an independent, staff, or public adjus ter

license unless the person or business entity is denied licensure pursuant to KRS

304.9-440.

(7) An independent or staff adjuster may qualify for a license in one (1) or more of the

following lines of authority:

(a) Property and casualty;

(b) Workers' compensation; or

(c) Crop.

(8) Notwithstanding any other provision of this subtitle, an individual who is employed

by an insurer to investigate suspected fraudulent insurance claims, but who does not

adjust losses or determine claims payments, shall not be required to be licensed as a

staff adjuster.

(9) A public adjuster may qualify for a license in one (1) or more of the following lines

of authority:

(a) Property and casualty; or

(b) Crop.

(10) Notwithstanding any other provision of this subtitle, a licens e as an independent

adjuster shall not be required of the following:

(a) An individual who is sent into Kentucky on behalf of an insurer for the sole

purpose of investigating or making adjustment of a particular loss resulting

from a catastrophe, or for th e adjustment of a series of losses resulting from a

catastrophe common to all losses;

(b) An attorney licensed to practice law in Kentucky, when acting in his or her

professional capacity as an attorney;

(c) A person employed solely to obtain facts surroun ding a claim or to furnish

technical assistance to a licensed independent adjuster;

(d) An individual who is employed to investigate suspected fraudulent insurance

claims, but who does not adjust losses or determine claims payments;

(e) A person who:

1. Solely performs executive, administrative, managerial, or clerical duties,

or any combination thereof; and

2. Does not investigate, negotiate, or settle claims with policyholders,

claimants, or their legal representatives;

(f) A licensed health care provider or its employee who provides managed care

services if the services do not include the determination of compensability;

(g) A health maintenance organization or any of its employees or an employee of

any organization providing managed care services if the services do not

include the determination of compensability;

(h) A person who settles only reinsurance or subrogation claims;

(i) An officer, director, manager, or employee of an authorized insurer, surplus

lines insurer, or risk retention group, or an attorney -in-fact of a reciprocal

insurer;

(j) A United States manager of the United States branch of an alien insurer;

(k) A person who investigates, negotiates, or settles claims arising under a life,

accident and health, or disability insurance policy or annuity contract;

(l) An individual employee, under a self -insured arrangement, who adjusts

claims on behalf of the individual's employer;

(m) A licensed agent, attorney-in-fact of a reciprocal insurer, or managing general

agent of the insurer, to whom claim authority has been granted by an insurer;

or

(n) 1. A person who:

a. Is an employee of a licensed independe nt adjuster, is an employee

of an affiliate that is a licensed independent adjuster, or is

supervised by a licensed independent adjuster, if there are no more

than twenty -five (25) persons under the supervision of one (1)

licensed individual independent ad juster or licensed agent who is

exempt from licensure pursuant to paragraph (m) of this

subsection;

b. Collects claim information from insureds or claimants;

c. Enters data into an automated claims adjudication system; and

d. Furnishes claim information to insureds or claimants from the

results of the automated claims adjudication system.

2. For purposes of this paragraph, "automated claims adjudication system"

means a preprogrammed computer system designed for the collection,

data entry, calculation, and s ystem-generated final resolution of

consumer electronic products insurance claims that complies with claim

settlement practices pursuant to Subtitle 12 of KRS Chapter 304.

(11) Notwithstanding any other provision of this subtitle, a license as a staff adju ster

shall not be required of an employee or agent of an insurer adjusting claims relating

to food spoilage with respect to residential property insurance in which the amount

of coverage for the applicable type of loss is contractually limited to one thous and

dollars ($1,000) or less.

(12) For purposes of this section, except as otherwise provided in subsection (14) of this

section, "home state" means any state or territory of the United States or the District

of Columbia in which an independent, staff, or public adjuster:

(a) Maintains his, her, or its principal place of residence or business; and

(b) Is licensed to act as a resident independent, staff, or public adjuster.

(13) Temporary registration for emergency independent or staff adjusters shall be iss ued

by the commissioner in the event of a catastrophe declared in Kentucky in the

following manner:

(a) An insurer shall notify the commissioner by submitting an application for

temporary emergency registration of each individual not already licensed in

the state where the catastrophe has been declared, who will act as an

emergency independent adjuster on behalf of the insurer;

(b) A person who is otherwise qualified to adjust claims, but who is not already

licensed in the state, may act as an emergency ind ependent or staff adjuster

and adjust claims if, within five (5) days of deployment to adjust claims

arising from the catastrophe, the insurer notifies the commissioner by

providing the following information, in a format prescribed by the

commissioner:

1. The name of the individual;

2. The Social Security number of the individual;

3. The name of the insurer that the independent or staff adjuster will

represent;

4. The catastrophe or loss control number;

5. The catastrophe event name and date; and

6. Any other information the commissioner deems necessary; and

(c) An emergency independent or staff adjuster's registration shall remain in force

for a period not to exceed ninety (90) days, unless extended by the

commissioner.

(14) (a) As used in this subsection, "home state" has the same meaning as in

subsection (12) of this section, except that for purposes of this subsection the

term includes any state or territory of the United States or the District of

Columbia in which an applicant under this subsection is licensed to act as a

resident independent, staff, or public adjuster if the state or territory of the

applicant's principal place of residence does not issue an independent, staff, or

public adjuster license.

(b) A nonresident person shall receive a nonresident independent, staff, or public

adjuster license if:

1. The person is currently licensed in good standing as an independent,

staff, or public adjuster in his, her, or its home state;

2. The person has su bmitted the proper request for licensure and has paid

the fees required by KRS 304.4-010;

3. The person has submitted, in a form or format prescribed by the

commissioner, the uniform individual application;

4. The person's designated home state issues nonr esident independent,

staff, or public adjuster licenses to persons of Kentucky on the same

basis; and

5. The person is not denied licensure pursuant to KRS 304.9-440.

(c) The commissioner may:

1. Verify an applicant's licensing status through any appropria te database,

including the database maintained by the National Association of

Insurance Commissioners, its affiliates, or subsidiaries; or

2. Request certification of an applicant's good standing.

(d) As a condition to the continuation of a nonresident adj uster license, the

licensee shall maintain a resident adjuster license in his, her, or its home state.

(e) A nonresident adjuster license issued under this subsection shall terminate and

be surrendered immediately to the commissioner if the licensee's resi dent

adjuster license terminates for any reason, unless:

1. The termination is due to the licensee being issued a new resident

independent, staff, or public adjuster license in his, her, or its new home

state; and

2. The new resident state or territory has reciprocity with Kentucky.