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Insurance · Adjuster Basics and Licensing

What is the primary role of an insurance claims adjuster?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

To investigate, evaluate, and settle insurance claims — determining coverage, assessing the extent of loss, and arriving at a fair claim payment under the policy

  1. A To sell insurance policies
  2. B To underwrite new applications
  3. C To set premium rates
  4. D To investigate, evaluate, and settle insurance claims — determining coverage, assessing the extent of loss, and arriving at a fair claim payment under the policy

Why this is the answer

A claims adjuster's primary role is to handle insurance claims: investigating the facts of a loss, determining whether and how the policy provides coverage, assessing the extent and value of the damage or injury, and negotiating and settling the claim for a fair amount under the policy terms. Adjusters gather evidence, interview parties and witnesses, review documentation, and apply the policy language to the facts. This differs from a producer (who sells policies) and an underwriter (who evaluates risk for new applications). Understanding the adjuster's core function — fairly investigating and settling claims — is foundational content for the adjuster exam.
Source: NAIC Adjuster, Role of the Adjuster

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About this topic: Adjuster Basics and Licensing

Adjuster basics cover the types of adjuster (staff, independent, public), licensing and continuing-education requirements, the adjuster's duties to the insurer and the insured, and the stages of a claim from first notice to closure. This is one of 9 Insurance Adjuster questions on adjuster basics and licensing, each with a full explanation on a single study page.

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