California Declares Emergency Due to Wildfires, Authorizing Use of Non licensed Insurance Adjusters
On January 7, 2025, California Governor Gavin Newsom proclaimed a state of emergency for the Los Angeles and Ventura counties due to the Palisades fire and associated wildfires caused by windstorm conditions. This declaration has led to significant damage across the region, with thousands of homes and business structures destroyed or damaged, leaving tens of thousands of California residents displaced.
To help address the overwhelming demand for insurance claim adjustments resulting from these wildfires, Insurance Commissioner Ricardo Lara has declared an emergency situation under Section 14022.5(a) of the California Insurance Code. This declaration allows insurers and licensed insurance adjusters to use Non licensed adjusters in certain circumstances, provided the following conditions are met:
Supervision by Licensed Adjusters: Non licensed adjusters must work under the direct supervision of a qualified, licensed adjuster, manager, or an insurer authorized to do business in California.
Registration of Non licensed Adjusters: Non licensed adjusters must register with the Insurance Commissioner within 15 days of starting their claims adjustment activities related to the wildfire. The registration process is available through the Department of Insurance’s online services, and once completed, the Non licensed adjusters will receive certification instructions.
Compliance with Regulations: All adjusters, licensed or not, must be properly trained on California's Unfair Practices Act, Fair Claims Settlement Practices Regulations, and other laws governing property and casualty insurance claims handling.
The use of Non licensed adjusters is valid for 180 days from the registration date. However, those overseeing Non licensed adjusters may face civil penalties if these adjusters violate any applicable regulations.
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