Define: Claimant - CORRECT ANSWERS A person or entity that requests indemnification
for losses under the terms of an insurance policy
Define: Adjuster - CORRECT ANSWERS Person who investigates, evaluates, and
negotiates claims arising under insurance contracts
Define: Adjusting - CORRECT ANSWERS The process of comparing a claimant's losses to
the promises made in an insurance policy
Define: Staff adjuster - CORRECT ANSWERS Salaried employee of an adjuster
Define: Independent adjuster - CORRECT ANSWERS Self-employed, contracts with
insurers or bureaus, paid by schedule, or time + expense
Define: Public adjuster - CORRECT ANSWERS Hired by the insured, usually paid
commission
Define: Emergency adjuster - CORRECT ANSWERS Temporarily licensed to service the
many claims arising from catastrophes
After Jerry pulled the fire alarm, the indoor sprinkler system came on and flooded the offices at
Elliot Designs, causing thousands of dollars in damage. Elliot Designs filed a claim with KLM
Insurance, who dispatched Chrystal to investigate and process the claim. Who is the claimant in
this scenario?
A. KLM Insurance
B. Jerry
,C. Chrystal
D. Elliot Designs - CORRECT ANSWERS D. Elliot Designs
After a storm demolished Greg's house, his insurance company sent an adjuster out to adjust
his claim. After investigating Greg's claim, the adjuster offered him a settlement which Greg felt
was too low. Not knowing much about property insurance, Greg wans a second opinion to make
sure he is receiving what he deserves. Who might Greg hire to help him with negotiating a fair
settlement?
A. An independent adjuster
B. An insurance adjuster
C. A staff adjuster
D. A public adjuster - CORRECT ANSWERS D. A public adjuster
A severe storm rages through Oklahoma City, with tornados causing multiple square miles
worth of damage. All the licensed adjusters in the area are already occupied or deployed to the
scene. Who can the insurance commissioner look to for temporary help resolving the rest of the
claims from this storm?
A. Staff adjusters
B. Emergency adjusters
C. Independent adjusters
D. Public adjusters - CORRECT ANSWERS B. Emergency adjusters
What is the title of the insurance professional who processes claims for compensation?
A. Insurance adjuster
B. Insurance salesman
C. Insurance broker
D. Insurance agent - CORRECT ANSWERS A. Insurance adjuster
Jane is a salaried employee of XYZ Insurance. Working out of a regional office, Jane is sent to
deal with some of the most difficult claims in her area. What kind of adjuster is Jane?
,A. Emergency adjuster
B. Public adjuster
C. Staff adjuster
D. Independent adjuster - CORRECT ANSWERS C. Staff adjuster
What kind of adjuster represents the insured rather than the insurer?
A. Public adjuster
B. Emergency adjuster
C. Independent adjuster
D. Staff adjuster - CORRECT ANSWERS A. Public adjuster
What do you call a self-employed adjuster who works as a contractor for insurers or claims-
handling companies?
A. Public adjuster
B. Emergency adjuster
C. Independent adjuster
D. Staff adjuster - CORRECT ANSWERS C. Independent adjuster
Define: Fiduciary agent - CORRECT ANSWERS The adjuster acts on behalf of principal
and must protect the principal's interests
Define: The power to bind - CORRECT ANSWERS The principal may have to honor the
adjuster's decisions, even when made in error
Define: Report to the principal - CORRECT ANSWERS The adjuster must give the principal
detailed information on how each claim is going
What are the 3 types of adjuster reports? - CORRECT ANSWERS Preliminary
, Interim
Final
What is included in a preliminary report? - CORRECT ANSWERS Initial investigation
results, timeline of claim, initial claim reserve
What is included in a final report? - CORRECT ANSWERS Full details of claim
investigation, evidence, loss totals, and final claim resolution
What is included in an interim report? - CORRECT ANSWERS Update on progress of claim
due at set intervals
An adjuster who acts as a fiduciary agent for an insurer must:
A. Represent the policyholder in her interactions with the insurer
B. Be a salaried employee of that insurer
C. Have authority granted by the insurer through a contract
D. Deal with the insurer's lawyer instead of directly with the insurer - CORRECT ANSWERS
C. Have authority granted by the insurer through a contract
In which report to the principal would an adjuster include all witness statements and other
supporting evidence, in addition to the total settlement amount?
A. Final report
B. Preliminary report
C. Settlement report
D. Interim report - CORRECT ANSWERS A. Final report
An adjuster who has just taken witness statements for a claim she is currently investigating, but
is not yet ready to close the claim, may submit to the insurer a / an:
A. Preliminary report
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