Prior to issuance of a license as a public adjuster and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the department through a security bond or irrevocable letter of credit.
(1)  A surety bond executed and issued by an insurer authorized to issue surety bonds in this state, which bond:
(a)  Shall be in the minimum amount of twenty thousand dollars ($20,000);
(b)  Shall be in favor of this state and shall specifically authorize recovery by the department on behalf of any person in this state who sustained damages as the result of erroneous acts, a failure to act, conviction of fraud, or conviction of unfair practices in his or her capacity as a public adjuster; and
(c)  Shall not be terminated unless at least thirty (30) days’ prior written notice will have been filed with the department and given to the licensee.

Terms Used In Idaho Code 41-5812

  • Conviction: A judgement of guilt against a criminal defendant.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fraud: Intentional deception resulting in injury to another.
  • Person: means an individual or a business entity. See Idaho Code 41-5802
  • Public adjuster: means any person who, for compensation or any other thing of value on behalf of the insured:
Idaho Code 41-5802
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
    • (2)  An irrevocable letter of credit issued by a qualified financial institution, which letter of credit:
    (a)  Shall be in the minimum amount of twenty thousand dollars ($20,000);
    (b)  Shall be to an account within the department and 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 erroneous acts, a failure to act, fraudulent acts, or unfair practices in his or her capacity as a public adjuster; and
    (c)  Shall not be terminated unless at least thirty (30) days’ prior written notice will have been filed with the department and given to the licensee.
    (3)  The issuer of the evidence of financial responsibility shall notify the department upon termination of the bond or letter of credit, unless otherwise directed by the department.
    (4)  The department may ask for the evidence of financial responsibility at any time deemed relevant.
    (5)  The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes impaired.