FREQUENTLY ASKED QUESTIONS

• IS IT TRUE THAT CAT ADJUSTING IS ONE OF THE
   HOTTEST JOBS IN AMERICA?
Parade Magazine did a cover story on “What People Earn” in their April 15, 2007 edition. On page four, they listed the "NINE HOTTEST JOBS (NO COLLEGE DEGREE REQUIRED)". The fifth hottest job in America is insurance adjusting. Their source for this assertion was listed as “Challenger, Gray & Christmas, Inc. with data provided by the Bureau of Labor Statistics and industry sources”. Why did they come to that conclusion? Simple, claims adjusters earn a fantastic living while they’re helping people at their point of need, at the point where they’re trying to put their lives back together after a catastrophe has stuck. With that said, what exactly does the term ‘hottest jobs’ mean exactly? I suppose that it means that there are going to be more job opportunities as time goes by than there are going to be qualified adjusters to fill them. This fact is evident by all observers within the industry – which brings us to our next question;
(To see a reprint of Parade Magazine story, click here)

• WHAT ARE MY CHANCES OF GETTING EMPLOYMENT?
Despite the fact that there are quite a few licensee’s running around out there thinking that they’re adjusters (they are adjusters in name only), the demand for professional adjusters has never been greater. Cat adjusting is unique, in that employment opportunities abound right after a major catastrophe such as a hurricane, flood, hailstorm, ice storm, earthquake or other natural disaster. Realize that the one thing that you can always depend on, are catastrophes and natural disasters happening somewhere eventually – typically sooner rather than later. After the insurance companies deploy their staff adjusters (employees), experienced Cat adjusters are always deployed first obviously, with well trained adjusters picking up any openings left after the independent adjusting (IA) firms have hired the experienced adjusters. After the well trained adjusters are deployed, if they still have plenty of claims, they then a left with no choice but to hire anyone with a license. As far as employment goes before the next major Cat event, we recommend that you try and get a job as a staff adjuster. Again, in contrast to a Cat adjuster who is an independent contractor, the staff adjuster is an employee of an insurance carrier. They work 40 hours a week and they make decent pay. Employment as a staff adjuster is great experience, and it looks great on your resume. Once you become a student with CIA, we will make available to you quite a number of sources for adjuster employment.

• I'VE HEARD THAT CAT ADJUSTING IS EASY MONEY.  IS IT TRUE?
I posed this question to one of our instructors, and he laughed out loud. Nothing could be further from the truth and anyone who has perpetuated that notion has never successfully finished adjusting a storm. To an untrained onlooker, CAT adjusting may appear easy because the adjusters being observed have disciplined themselves and they ‘plan their work and work their plan’. They have their daily work plan down to a science. A Cat adjuster can make a lot of money, but there's nothing easy about it. Cat adjusting is probably the hardest-working, lucrative income that most people will ever make.

• HOW MUCH MONEY DOES A CATASTROPHE ADJUSTER MAKE?
Your income will depend to a large degree upon how much you want to make – which means how hard you work. Some companies pay a daily rate (normally $600-800/day), but during a catastrophe, most pay on a “fee schedule” (a fee based upon the total amount of each claim). It is not unusual to average $400-600 per claim, and an efficient adjuster can turn in upwards of 3-5 claims per day. That’s $1200 to $3000 a day. These are not exaggerated numbers. The first apprentice that I ever field trained was my son Adam, in his mid-twenties at the time. Adam made well over $60,000 his first storm working a total of three months (Hurricane Katrina). This was more money than Adam had made in the previous two years combined as a painting contractor! Obviously you will not make exactly the same amount that he did – you would make either more or less. On the conservative side, depending on their work-ethic, professional adjusters will make anywhere from $20,000 to $150,000 working between 2-5 months a year. Like any other profession, it depends upon the adjuster, experience, skills, education, capabilities, availability, common sense, attitude, their willingness to work long and difficult hours, the company that you work for, and to a large extent, how one is evaluated and trusted by superiors.

• WHO SHOULD ATTEND OUR CLASS?
Anyone who has heard about insurance (or catastrophe) adjusting and is interested in claim adjusting – OR- anyone who is tired of their current profession and is looking for a change –OR- anyone who wants the COVETED Texas All-Lines Adjuster License. The Texas All-Lines adjuster license allows you to adjust every insurance claim there is (in Texas) and is reciprocal in over 30 states, reciprocal with more than any other state license by far!

• WHAT ARE THE CLASS REQUIREMENTS?
We want our students to come to class prepared and relaxed. Listed below are some basic requirements our students will need in order to effectively learn and remain comfortable:
  * Notepad
  * Comfortable Clothing
  * Calculator
  * Sense of Humor
  To attend our classes, it is NOT a requirement that you have:
  - Experience
  - A Degree
  - A Sponsor
We attempt to provide a positive and memorable learning environment which will influence you and your career for many successful years in this industry, therefore you must attend 90% or more of the classroom course and / or make up any missed time and classroom notes in a later scheduled class.

• WHO IS THE TDI ?
The Texas Department of Insurance (TDI) regulates the state’s insurance industry. Texas law requires most Insurance Carriers and Insurance-related businesses to be licensed before selling their products or services. TDI licenses insurance companies, agents, third-party administrators, health maintenance organizations (HMOs), premium finance companies, continuing care retirement communities, insurance adjusters, and public insurance adjusters doing business in Texas. TDI also issues rules and regulations for the state’s insurance industry, enforces the Texas Insurance Code, and investigates and takes enforcement action against company, agent and adjuster misconduct.

• WHAT ARE THE TEXAS LICENSING REQUIREMENTS?

• WILL A CRIMINAL RECORD PREVENT ME FROM GETTING
    LICENSED?
It is important to understand that a criminal record does not automatically disqualify you for an adjuster license. – We’ve all made mistakes in our past. If you do have a misdemeanor or felony on your record (whether or not it occurred as a minor) you will have to provide specific information to the TDI. When asked for this information on your licensing application, be complete with your answer – they will do a thorough background check, and they will find out anyway. Simply follow the exact instructions on the TDI application. It is a good idea for you to phone the TDI and ask about your specific circumstance before incurring any expense at 512.322.3503. Your prospective employer is another matter and we can't speak for them.

• WHAT IS RECIPROCITY?
According to the Merriam Webster dictionary, reciprocity is the mutual exchange of privileges; specifically, recognition by one or more States of the validity of licenses or privileges granted by the other. This enables adjusters to use their Texas license on a Cat event in a participating state without taking the other state's exam or equivalent coursework. Currently, 32 states grant reciprocity to the Texas All-Lines Adjuster License making it the most universally accepted and sought-after adjuster license in the country. Despite what’s being taught out there, reciprocity does not mean that having obtained the Texas Adjuster's license that you are automatically licensed in 30 other states. If you desire another states license, you will still need to apply for that particular state's licenses. Think about it like this, your driver’s license is reciprocal in the 49 other states, but that doesn’t mean that you actually have 50 drivers licenses.

It is important to note that if you are not a resident of Texas, in order to enjoy the benefits of reciprocity through the Texas Adjuster's License, in most cases you will need to have a resident license in your home state. For example, if you want to enjoy the benefits of reciprocity that comes with your Texas adjusters license, but you are a resident of Florida, you will only be able to do so by:
   a) holding their Florida adjuster's license first -OR-
   b) establish residency here in Texas.
However, if your state of residence does not have a licensing requirement, but you hold your Texas All-Lines Adjuster's License, you will be eligible for reciprocity with other participating states. Thus, a resident of North Dakota (no state licensing requirement) who has a non-resident license from Texas will still be able to be licensed in the 32 reciprocity participating states without being required to take their exam. For detailed information in each state regarding licensing requirements and reciprocity in relation to the Texas license, the last ten pages of this document represents each states adjuster licensing requirements (as of 4/9/07) as well as details reciprocity with the Texas license.

• WILL I NEED MORE TRAINING AFTER YOUR CLASSES ?
Clearly, the more training and experience you have, the more demand there will be for your services. Those adjusters in high demand are the one’s making the big money. There are other considerations, as well. Some employers prefer a licensee with no experience that can enter the workplace with no pre-established bad habits. Each company has its own way of doing things. On the other hand, the vast majority of companies just don't have the time or available staff to train anyone; hence those companies may prefer adjusters who have a resume filled with training and or experience. Will those of you with no prior training or experience walk right into a high paying job following our classes? As a general rule, no. However, without the appropriate license, there will be NO chance of becoming an adjuster for anyone – everyone has to start somewhere. We normally council those with no experience to talk to experienced adjusters who have been down in the trenches, and then make up their own mind about what's needed.

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