Module 2-B - What is Adjusting Flashcards
Adjuster
An agent who, for compensation, processes insurance claims. The adjuster investigates
the damages, evaluates the claim, and makes a fair and equitable settlement based on
the insurance contract. Can represent either the insured or the insurer.
Adjuster - Emergency
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.
Adjuster Independent
Self-employed adjusters who contract with multiple insurers at the same time. Paid on a
commission or fee-plus-expenses basis for each claim. Also called: Fee Adjuster,
Bureau Adjuster.
Adjuster - Public
An adjuster who is hired to represent the claimant and help determine a fair
indemnification. Usually specializes in appraisals and negotiation. Paid commission,
usually a percentage of final settlement.
Adjuster - staff
Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called: Company Adjuster.
Catastrophe
An occurrence or a sequence of occurrences that causes enormous property losses.
Catastrophes are normally uninsurable by private insurers.
Claims Management
The practice of the insurance adjuster of managing a claim by processing it in a prompt
and effective manner from the time the claim is filed until a settlement is reached, while
adhering to all local and federal laws.
Claimant
One who files a claim with an insurer for a loss.
Fiduciary
One of the terms that describes the adjuster’s relationship with the principal (the
insurer). As fiduciary agent, the adjuster acts for the benefit of the principal, rather than
for his own benefit.
Reporting
One of the adjuster’s duties is to report to the principal. The adjuster must give the
principal frequent updates of her progress on any given claim.
