The California Department of Insurance issued an emergency declaration to aid in recovery from the wildfires that are devastating the state. The declaration allows for the use of nonlicensed adjusters if certain requirements are met.
California Governor Gavin Newson declared a state of emergency on January 7, 2025, allowing Insurance Commissioner Ricardo Lara to declare an emergency situation. Since there will be an overwhelming amount of claims and likely a shortage of licensed adjusters, insurers may use nonlicensed adjusters if these conditions are met:
- A licensed adjuster, qualified manager, or an insurer authorized to do business in California manages or directs the work performed by nonlicensed adjusters
- Nonlicensed adjusters must register with the Insurance Commissioner within 15 days of adjusting claims related to the wildfires
- All adjusters must be trained on the California Unfair Practices Art, the Fair Claims Settlement Practices Regulations, and all other applicable P&C insurance claims handling laws
A licensed adjuster, qualified manager, or an insurer authorized to do business in California who manages or directs a nonlicensed adjuster can be held liable for violations performed by the nonlicensed adjuster and can face civil penalties.