What ethical duty does an adjuster owe regarding fair and honest treatment of all parties?

An adjuster owes ethical duties of honesty, fairness, and competence in handling claims. This means applying the policy terms correctly, conducting a proper investigation, treating claimants fairly and with respect, communicating truthfully (avoiding misrepresentation of facts or policy provisions), settling valid claims promptly and fairly, and complying with all applicable laws and unfair-claims-practices regulations. While staff and independent adjusters work for the insurer, they must still treat claimants fairly and cannot engage in deceptive or bad-faith conduct. Maintaining professional ethics protects consumers, the insurer's reputation, and the adjuster's license. Understanding the adjuster's ethical obligations is foundational content for the exam.