2 What Is Adjusting?

Question 1

Adjuster

Answer 1

An agent who, for compensation processes insurance claims. The adjuster investigates the damages, evaluates the claim, and make a fair and equitable settlement based on the insurance contract. Can represent either the insured or the insurer.

Question 2

Emergency Adjuster

Answer 2

Adjusters who are temporarily licensed by the insurance commissioner to handle claims during catastrophes or emergencies that produce an overwhelming number of claims in a short period of time.

Question 3

Independent Adjuster

Answer 3

Self-Employed adjusters who contract with multiple insures at the same time. Paid on a commission or fee-plus-expenses basis for each claim. Also called: Fee adjuster, bureau adjuster.

Question 4

Public Adjuster

Answer 4

An adjuster who is hired to represent the claimant and help determine a fair indemnification. Usually specialized in appraisals and negotiation. Paid Commission, usually a percentage of finale settlement.

Question 5

Staff Ajuster

Answer 5

Salaried employee of one insurance company who can work locally regionally, or nationally. Also called: Company Adjuster.

Question 6

Catastrophe

Answer 6

An occurrence or a sequence of occurrences that causes enormous property losses. Catastrophes are normally unisurable by private insurers.

Question 7

Claims Management

Answer 7

The practice of the insurance adjuster of managing a claim by processing it in a prompt and effective manner from the time the claim if filed until a settlement is reached, while adhering to all local and federal laws.

Question 8

Claimant

Answer 8

One who files a claim with an insurer for a loss.

Question 9

Adjuster’s Responsibilities to Insurer

Answer 9

1) Act as the Fiduciary Agent
2) Exercise the Power Bind
3) Report to the principal

Question 10

Fiduciary

Answer 10

One of the terms describes the adjuster’s relationship with principal (the insurer). As fiduciary agent, the adjuster acts for the benefit of the principal rather than for his own benefit.

Question 11

Reporting

Answer 11

One of the adjusters’ duties is to report the principal. The adjuster must give the principal frequent updates of her progress on any given claim.

Question 12

Preliminary (Initial) Report

Answer 12

Initial investigation results, timeline of claim, initial claim reserve.

Question 13

Interim (Status) Report

Answer 13

Update on progress of claim due at set intervals.

Question 14

Final (Full) Report

Answer 14

Full details of claim investigation, evidence, loss totals and final claim resolution.

Question 15

The Claim Function

Answer 15

Comply with the terms of the contract
Support the insurer’s financial stability