What is a key principle an adjuster should follow when negotiating a claim settlement?

An adjuster should negotiate claim settlements in good faith, working toward an amount that is fair and supported by the investigation's facts and the policy's terms. This means treating claimants honestly and professionally, neither overpaying (which harms the insurer and the risk pool) nor unfairly underpaying or lowballing (which harms the claimant and can constitute bad faith). Good-faith negotiation includes clear communication, prompt handling, and a settlement justified by the loss and coverage. The adjuster balances the duty to the insurer with the obligation to treat claimants fairly. Understanding good-faith, fact-based negotiation is core content for the adjuster exam.