Property and Casualty Insurance Practice Exam

What duties do claim adjusters typically perform after a loss occurs?

1. Inspect the insured's factory and safety protocols

2. Determine the rates to be charged for policies

3. Inspect losses, assess coverage, and sometimes pay for the loss

4. Ensure compliance with state insurance laws

The correct answer is: Inspect losses, assess coverage, and sometimes pay for the loss

Claim adjusters are responsible for a range of critical tasks following the occurrence of a loss. The primary function involves inspecting the damage or loss that has been reported. They evaluate the extent of the loss, which can include reviewing both physical damage and the circumstances surrounding the claim. This evaluation is essential for determining the insurance coverage applicable to the specific situation. In addition to assessing the damage, claim adjusters also analyze the policy coverage to ensure that the claim aligns with what is stipulated in the insurance policy. They gather information, which may include obtaining statements from the insured, witnessing physical evidence, and consulting experts if necessary. Once the damage assessment is complete and coverage is confirmed, claim adjusters may authorize payment for the covered losses, streamlining the process for the policyholder. This role is crucial in the insurance process as it ensures that claims are handled fairly and efficiently, providing the insured with the necessary support during often stressful situations following a loss. This function distinctly separates claim adjusters from other roles, such as underwriting, which typically goes hand in hand with rate determination and policy issuance, or regulatory roles focused on compliance with state laws.