Question & AnswerQ&A (IC INSURANCE MEMORANDUM CIRCULAR NO. 4-93)
The two types of adjusters defined are Independent Adjuster and Public Adjuster.
An Independent Adjuster is any person, partnership, association, or corporation which, for money, commission or any other thing of value, acts for, or on behalf of an insurer in adjusting claims arising under insurance contracts issued by such insurer.
Persons, partnerships, associations, or corporations may apply for a license. Natural persons must be Filipino citizens; partnerships, associations or corporations must have at least 60% capital owned by Filipino citizens.
They must have at least ten (10) years experience in the line of adjustment being applied for or have completed the insurance adjuster's course by the Insurance Institute for Asia and the Pacific or passed the Insurance Commission's adjuster's examination.
The applicant must have a paid-up capital of at least P250,000.00.
Adjusters must submit quarterly reports within the period required under Section 331 of the Insurance Code, including details of adjustment fees charged during the period for fire insurance and allied lines to compute the 2% levy under the Fire Code.
Receiving, exacting, or demanding money or other consideration from claimants for favorable claim recommendations or for recommending payment amounts that are excessive or unreasonably meager constitutes fraud and dishonesty, grounds for license suspension or revocation.
Yes, a surety bond of P50,000.00 is required for each line of insurance claim adjustment, co-terminous with the adjuster's license.
They must be of good moral character without convictions involving moral turpitude, have at least five (5) years experience in the line of adjustment, or have completed the insurance adjuster's course or examination as required.
No, company adjusters who are salaried employees of an insurance company adjusting claims filed under policies issued by that company do not require a license.
Clearances from the National Intelligence Coordinating Agency (NICA), Bureau of Internal Revenue (BIR), National Bureau of Investigation (NBI), and from previous employers.
No, a person or firm licensed as a public adjuster cannot be granted a license as an independent adjuster and vice versa.
No fee or salary shall be paid unless the final report under oath is submitted within 60 days, except for reasons beyond the adjuster's control.
A partnership or corporation must earn at least P500,000.00 and a sole proprietorship or individual at least P250,000.00 in adjustment fees during the year following license issuance.
They must give prior notice and obtain approval from the Insurance Commission and ensure that the branch has a duly licensed adjuster for each line of insurance loss adjustment it engages in.