Alabama Property and Casualty Practice Exam

What is one of the key functions of an insurance adjuster?

1. To sell policies to clients

2. To settle claims by investigating and assessing losses

3. To provide legal advice to policyholders

4. To offer financial planning services

The correct answer is: To settle claims by investigating and assessing losses

An insurance adjuster plays a vital role in the claims handling process by investigating and assessing losses to determine the insurance company's liability and the appropriate compensation for the policyholder. This function involves gathering evidence, interviewing witnesses, inspecting property damage, and reviewing policy details to ensure that claims are settled fairly and accurately. By performing these tasks, the adjuster helps ensure that claims are processed efficiently and that both the insurer and the insured are treated equitably. This aspect of the adjuster's job is crucial because it directly affects the financial resolution of a claim, providing policyholders with the necessary support in times of loss while protecting the interests of the insurance company. The other functions mentioned, such as selling policies, providing legal advice, or offering financial planning services, fall outside the primary responsibilities of an adjuster. Insurance adjusters do not typically sell policies, as that is the role of agents or brokers, nor are they licensed to provide legal counsel, which is a function reserved for legal professionals. Financial planning services also do not align with the adjuster's duties, as their focus is specifically on claims handling.