Definition
An adjuster is a professional who is employed by an insurance company to handle claims made by policyholders. The role of an adjuster involves evaluating the details of each claim, determining the extent of the insurance company’s liability, and making recommendations for settling the claim. Adjusters aim to reach a fair and equitable settlement that aligns with the terms of the policy and the specific circumstances of the claim.
Examples
- Auto Insurance Adjuster: An adjuster assigned to a car accident evaluates the damage to the vehicle, reviews the policy coverage, and negotiates with repair shops and the insured to settle the claim.
- Property Insurance Adjuster: In the event of a home being damaged by a natural disaster, an adjuster visits the site to assess damages, reviews repair estimates, and assists in the claim settlement process.
- Casualty Insurance Adjuster: For a workplace injury, an adjuster investigates the incident, coordinates with medical professionals, and manages the claim to ensure the injured party receives appropriate compensation.
Frequently Asked Questions (FAQs)
What qualifications are required to become an adjuster?
Typically, adjusters need a combination of education and experience, often requiring a high school diploma or equivalent, although some positions may require a bachelor’s degree. Specialized training, certifications, and licensing are also commonly needed.
What skills are essential for an adjuster?
Skills include strong analytical ability, attention to detail, excellent communication, and negotiation skills. Knowledge of insurance laws and policies is critical.
How does an adjuster determine the value of a claim?
The value of a claim is determined through a thorough investigation that includes assessing damage, consulting repair or medical estimates, reviewing policy terms, and gathering supporting documentation.
Can an adjuster deny a claim?
Yes, an adjuster can recommend denying a claim if it does not meet the criteria set forth in the insurance policy or after discovering fraudulent activity.
What is an independent adjuster?
An independent adjuster is not employed directly by an insurance company but rather by an independent adjusting firm. They are contracted to handle claims usually during high-claim periods or specialized claims.
Related Terms
- Independent Adjuster: An independent professional who works on behalf of insurance companies but is not directly employed by them. Often used for larger catastrophes or complicated claims.
- Claims Adjuster: A general term that encompasses all types of adjusters, including those who handle various insurance claims, from auto accidents to property damage.
- Public Adjuster: An adjuster who is hired by the policyholder to represent their interests in the claim process, unlike company adjusters who represent the insurance company.
Online References
- Insurance Information Institute (III) - Role of an Insurance Adjuster
- National Association of Public Insurance Adjusters (NAPIA)
- Adjusters International
Suggested Books for Further Studies
- “Insurance Adjusting Real Property Claims” by Maruzel Pusey
- “The Claims Adjuster’s Guide to Excellence: Corporate Edition” by Barry Zalma
- “The Insurance Professional’s Practical Guide to Workers’ Compensation: From History through Audit” by Chris Boggs
Fundamentals of Adjusters: Insurance Basics Quiz
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