Which of the following statements about adjustment bureaus is (are)true?
I.They are frequently used to settle claims when a large number of losses occur in a given geographic location as a result of a catastrophic event.
II.Their major advantage is low cost because of the use of part-time adjustors.

Question

Quizplus · Accepted Answer

Statement I is true. Adjustment bureaus are often used in situations where a large number of losses occur in one geographic area due to a catastrophic event, such as a hurricane or wildfire. Statement II is false. While it may initially seem like an advantage to use part-time adjusters to keep costs low, the reality is that experienced and well-trained adjusters are necessary to accurately assess and settle claims. Using inexperienced or poorly trained adjusters can lead to costly mistakes and legal disputes.

Which of the Following Statements About Adjustment Bureaus Is (Are)true