Public adjusters play a critical role in claims adjudication process and can often serve as the policyholder’s ally in getting claims disputes resolved prior to litigation. The Arizona Revised Statutes define “Adjuster” as any person who for compensation, fee or commission either:

  • Adjusts, investigates or negotiates the settlement of claims arising under property and casualty insurance contracts on behalf of either the insurer or the insured; or
  • Holds oneself out to perform a service listed in item (i) of this subdivision.1

Adjusters in Arizona are required to be licensed with the Arizona Department of Insurance.2 All adjusters in Arizona are required to be a resident of the state (or a resident of another state that allows residents of Arizona to act as adjusters in the other state) and at least 18 years of age.3 When obtaining a license as an adjuster in Arizona, one must apply with the Director of the Arizona Department of Insurance, using the prescribed forms provided by the Director and remit the proper licensing fee.4

As defined in Arizona, adjusters do not include licensed attorneys, salaried employees of an insurer, licensed insurance producers, employees of a political subdivision, and independent contractors retained by a licensed adjuster, attorney or insurer.5

Adjusters are required to report any changes to their residential mailing or business address, email address, or telephone number within 30 days to the Department of Insurance.6 This also includes any changes or removal to the business-entity’s licensee’s members, directors, officers or designated producer or licensee’s name.7

Critically, while adjusters play an important role in the claims adjustment process, an adjuster is prohibited in engaging in the practice of law.8
1 A.R.S. §20-321(1)(a)
2 A.R.S. §20-321.01(B)
3 A.R.S. §20-321.01(C)
4 A.R.S. §20-321.01(B)
5 A.R.S. §20-321(1)(b)
6 A.R.S. §20-286(C)(1)
7 A.R.S. §20-286(C)(2); A.R.S. §20-286(C)(3)
8 In re Creasy, 12 P.3d 214, 194 Ariz. 539 (2000)