An insurance adjuster investigates and settles claims, which means handling policyholder money, medical records, and sworn statements. Because of that level of trust, most states that license adjusters require a fingerprint based criminal history check before issuing the license, and federal law separately restricts who can work in the business of insurance at all. Anyone applying for an adjuster license, or any carrier or independent adjusting firm that hires adjusters, is really dealing with two different screening systems that happen to overlap: the state licensing background check and a standard employment background check governed by the Fair Credit Reporting Act.
This guide walks through how the state fingerprint process works, what 18 U.S.C. 1033 actually prohibits, how the written consent waiver process functions, and where an employer’s own FCRA background check fits in once someone is hired.
Why adjuster licenses carry their own background check
State departments of insurance license three broad categories of adjusters: independent adjusters who work for adjusting firms, public adjusters who represent policyholders, and staff or company adjusters who work directly for a carrier. Licensing requirements vary by state, and a number of states do not require a separate adjuster license at all, relying instead on reciprocity with an applicant’s home state. Where a license is required, the state agency, not the employer, is the one running the background check as a condition of issuing or renewing the license.
California requires fingerprint submission for most insurance license applicants, including adjusters, and uses the results to check state and federal criminal history as part of the licensing decision, as described on the California Department of Insurance’s criminal history page. Texas requires applicants for a resident adjuster license to submit fingerprints through the state’s online application and fingerprint portal before a license can be issued, as outlined on the Texas Department of Insurance’s public adjuster licensing page. Florida requires fingerprints from agent and adjuster applicants, with results sent electronically to the Florida Department of Law Enforcement and then to the Department of Financial Services, as described on the Florida CFO’s fingerprinting information page. The exact fingerprinting vendor, fee, and result validity period differ by state, so an applicant should always confirm current steps on the licensing state’s own site rather than assume one state’s process applies everywhere.
| State | Fingerprint based check required for adjuster license | Who reviews the results |
|---|---|---|
| California | Yes, for most license applicants including adjusters | California Department of Insurance, using state and FBI criminal history |
| Texas | Yes, for resident adjuster license applicants | Texas Department of Insurance, using Texas DPS and FBI records |
| Florida | Yes, for agent and adjuster applicants | Florida Department of Financial Services, using Florida Department of Law Enforcement and FBI records |
| Non licensing states | Varies, often relies on a designated home state license instead | The applicant’s resident or designated home state |
18 U.S.C. 1033: the federal bar on working in the business of insurance
Separate from any state license, federal law places its own restriction on who can work in insurance. Under 18 U.S.C. 1033, a person who has been convicted of a felony involving dishonesty or a breach of trust generally may not willfully engage in the business of insurance, or participate in that business in a way that affects interstate commerce, unless that person first obtains the written consent of an insurance regulatory official. The statute applies nationwide and does not depend on whether a particular state licenses adjusters at all. It covers conduct, not just titles, so a felony conviction involving dishonesty can affect someone’s ability to work as an adjuster, agent, underwriter, or claims handler regardless of which specific insurance job they are seeking.
The statute grew out of the Violent Crime Control and Law Enforcement Act of 1994 and was written broadly on purpose, to keep people with a disqualifying felony conviction out of the insurance industry unless a regulator specifically allows an exception.
The written consent, or 1033 waiver, process
Section 1033 includes its own exception: a person who would otherwise be barred can apply to an insurance regulatory official for written consent to work in the business of insurance, and that consent must specifically reference the statute. Each state sets its own procedure for reviewing these applications, and state insurance departments have issued formal guidance explaining how they evaluate them. New York’s Department of Financial Services, for example, has published an opinion walking through how it analyzes a 1033 consent request, including the factors it weighs about the underlying conviction and the time and conduct since then, in its 1033 waiver opinion. A consent granted by one state’s regulator is generally treated as satisfying the federal requirement for work connected to that consent, but the scope and conditions of any waiver are set by the regulator that issued it, and an applicant should not assume a waiver from one context automatically covers every role or every state. Anyone who believes 1033 may apply to their situation should raise it directly with the licensing state’s insurance department rather than guess at the outcome.
Disclosing prior convictions and administrative actions on the license application
Adjuster license applications in every state ask background questions that go beyond the fingerprint check itself, including whether the applicant has ever been convicted of a felony or certain misdemeanors, has had an insurance license denied, suspended, or revoked in any state, or has pending criminal charges. These questions exist because the license application is also where 18 U.S.C. 1033 gets applied in practice. A state insurance department can deny, suspend, or revoke a license based on an undisclosed conviction even when the underlying offense might not have barred the person on its own, because failing to disclose is treated as a separate integrity problem. Applicants should answer licensing background questions completely and accurately, and raise any 1033 consent question with the state proactively rather than leaving it for the state to discover during fingerprint processing.
NIPR and multistate adjuster license applications
Most adjusters eventually need licenses, or designated home state authority, in more than one state. The National Insurance Producer Registry is the industry utility that states and applicants use to file producer and adjuster license applications, renewals, and related transactions electronically across states. NIPR itself does not decide who gets licensed; each state insurance department still makes the licensing decision, including whatever weight it gives to fingerprint results and any disclosed criminal history. Using NIPR mainly changes how the paperwork moves, not the underlying state by state rules on background checks or 1033 consent.
The separate employment background check carriers and firms run
Getting licensed is not the same as getting hired. Once an insurance carrier or independent adjusting firm wants to bring someone on as an employee or contractor, and that employer orders a background report through a consumer reporting agency, the Fair Credit Reporting Act governs that process on top of anything the state licensing board already did. The employer generally must provide a standalone disclosure that a background check will be obtained, get the applicant’s written authorization, and, if the employer is considering not hiring or not retaining someone based in whole or in part on the report, send a pre adverse action notice with a copy of the report and a copy of the applicant’s Summary of Rights before taking final action, followed by an adverse action notice if the employer proceeds. A license related criminal history check run by a state agency does not substitute for these FCRA duties, and an FCRA report does not substitute for the state’s own licensing background check. The two processes ask different questions, answer to different regulators, and typically happen at different points in the hiring and licensing timeline.
| Feature | State licensing background check | Employer FCRA background check |
|---|---|---|
| Who orders it | The state department of insurance, as part of the license application | The carrier or adjusting firm, through a consumer reporting agency |
| Legal basis | State insurance code and, where relevant, 18 U.S.C. 1033 | The Fair Credit Reporting Act |
| What it typically covers | Fingerprint based criminal history, disclosed convictions, prior license actions | Criminal records, verifications, and other permissible consumer report content tied to the job |
| What triggers before an adverse decision | State review of the application, which may include a hearing or 1033 consent request | Pre adverse action notice, copy of report, Summary of Rights, then adverse action notice |
What a background check actually turns up, and what disqualifies someone, varies by state and by employer policy, and the look back period for criminal records on a consumer report can also vary under state law. Neither a licensing agency nor an employer can promise in advance that a particular record will or will not appear, and this article does not attempt to list every state’s specific rules, since the details differ enough that the primary source for the state in question is the only reliable answer.
Frequently asked questions
Does every state require a fingerprint check to license an adjuster?
No. Fingerprint based criminal history checks are common for adjuster license applicants, as seen in California, Texas, and Florida, but not every state licenses adjusters in the first place, and some rely on a designated home state license instead of a separate check. The applicant’s resident or licensing state’s own requirements control.
What exactly does 18 U.S.C. 1033 prohibit?
It generally bars a person convicted of a felony involving dishonesty or breach of trust from willfully engaging in the business of insurance, or participating in that business in a way affecting interstate commerce, unless the person has obtained the written consent of an insurance regulatory official as described in 18 U.S.C. 1033.
How does someone get a 1033 consent waiver?
The person applies to an insurance regulatory official, typically in their resident state, for written consent that specifically references the statute. Procedures and evaluation factors vary by regulator, and an applicant should contact the licensing state’s insurance department for its current process rather than rely on another state’s rules.
Is the state licensing background check the same as the background check an employer runs?
No. The state licensing check supports the licensing decision and may involve 18 U.S.C. 1033. A separate employment background check ordered by a carrier or adjusting firm through a consumer reporting agency is governed by the Fair Credit Reporting Act and carries its own disclosure, authorization, and adverse action requirements.
Can an undisclosed felony conviction affect an adjuster license even without 1033?
Yes. License applications generally ask about felony convictions and prior license discipline directly, and a state insurance department may deny, suspend, or revoke a license based on a failure to disclose, separate from whether 1033 itself would have barred the person.
Where can someone apply for adjuster licenses in multiple states?
Most states and applicants use the National Insurance Producer Registry to file license applications, renewals, and related transactions electronically, though each state still makes its own licensing decision.
Carriers and independent adjusting firms that want to confirm license status and history, and add a compliant FCRA background check on top of it, generally find it easier to standardize that process rather than handling each piece separately. For employers building out that process, resources on professional license verification background checks and on background checks for other licensed financial roles, such as NMLS background check requirements for loan originators, cover how license based checks and FCRA employment checks fit together in other regulated industries. Learn more about compliant employment background screening at Reveal Background.
This article is general information, not legal advice. State insurance licensing rules and the application of 18 U.S.C. 1033 can vary and change, and anyone with a specific licensing or consent question should contact the relevant state insurance department or consult an attorney.
