Who requires it
Kentucky Department of Insurance
License & permit · Kentucky
Kentucky Public Adjuster Bond
Kentucky public adjusters must show $50,000 of financial responsibility before the Department of Insurance issues the license and must keep that security for the license term. KRS 304.9-430 accepts a surety bond from an authorized insurer or an irrevocable letter of credit from a qualified financial institution. If the security terminates or becomes impaired, the public adjuster license automatically ends and must be surrendered.
Common bond amount
$50,000
Minimum surety bond or irrevocable letter of credit under KRS 304.9-430; license ends if security lapses.
How you file
Surety bond or irrevocable letter of credit filed with the Department of Insurance
Renewal
Maintain continuously; 30-day termination notice; auto-terminate if security lapses
Who requires it
Applicants for and holders of a Kentucky public adjuster license under KRS 304.9-430. Independent and staff adjusters follow different licensing paths. A two-year period beginning April 13, 2026, generally bars new public-adjuster applications, with limited exceptions; existing licenses may renew.
How much is required
KRS 304.9-430 requires a fifty-thousand-dollar surety bond from an authorized insurer, or an irrevocable letter of credit from a qualified financial institution, before the Department of Insurance may issue the license. The bond runs to the Commonwealth so people in Kentucky damaged by the adjuster’s errors, failures to act, fraud convictions, or unfair-trade-practice convictions can recover. The surety or bank must give the licensee at least thirty days’ prior written notice before terminating the security.
How to get and file it
Complete the Department of Insurance public-adjuster application path (including examination and background steps when applicable). Have an authorized surety execute a $50,000 public-adjuster bond, or arrange a qualifying irrevocable letter of credit, and deliver proof before expecting the license to issue or renew. Maintain the $50,000 security for the entire license term. Provide continuation evidence when DOI requires it. Replace coverage before any cancellation effective date; a lapse automatically terminates authority to act as a public adjuster.
Cost note
Fifty thousand dollars is the required bond or letter-of-credit amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $50,000 minimum surety or irrevocable letter of credit
- Authority
- KRS 304.9-430
- Who can recover
- Bond in favor of the state; recovery for damaged persons in Kentucky
- New-license note
- Two-year restriction on new public-adjuster licenses beginning April 13, 2026
Official sources
Related resources
Frequently asked questions
Can I use a letter of credit instead of a surety bond?
Yes. KRS 304.9-430 expressly allows an irrevocable letter of credit from a qualified financial institution in the same $50,000 minimum amount as an alternative to the surety bond.
What happens if my bond is cancelled?
If financial responsibility terminates or becomes impaired, the public adjuster license automatically terminates and must be promptly surrendered to the commissioner without demand.
Related Kentucky bond guides
Notary Public Bond
$1,000
Kentucky notary applicants must obtain a $1,000 surety bond—called an assurance in the statute—covering the four-year commission term. After the Secretary of State issues the commission, the applicant has thirty days to appear before the county clerk listed in the application, take the oath, file the commission, and submit the bond. Notarial acts may be performed only while a valid assurance remains on file with the county clerk.
Mortgage Lender Bond
$15,000 / $20,000 / $50,000 / $250,000
Kentucky mortgage loan companies, mortgage loan brokers, and mortgage loan originators must keep a bond for the entire license or registration period. KRS 286.8-060 sets floors of $250,000 for mortgage loan companies and $50,000 for mortgage loan brokers. 808 KAR 12:021 adds individual originator amounts of $15,000 or $20,000 based on annual loan volume, using Forms ML-1 through ML-4 filed through NMLS with the Department of Financial Institutions.
Motor Vehicle Dealer Bond
Conditional · up to $100,000+
Kentucky does not make every motor vehicle dealer post a fixed statewide surety. KRS 190.030(9) lets the Motor Vehicle Commission require a bond of up to $100,000 when it doubts an applicant’s financial responsibility or compliance. 605 KAR 1:030 adds a concrete asset path for new, used, motorcycle, automotive mobility, and leasing dealers: show at least $50,000 in unencumbered cash or inventory, and if assets sit between $50,000 and $100,000, obtain a commercial bond for the difference to $100,000. Auction dealers may face higher commission-set amounts.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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