Which of the following statements about claims settlement is true?
A)Agents are never authorized to settle claims.
B)Independent adjusters may be used in a geographic area where the volume of business is too low for an insurer to have its own adjusters.
C)A public adjuster is a salaried employee who works for one insurer.
D)A staff claims representative is hired by a policyholder to represent him or her if the policyholder does not agree with the claim settlement offered by the insurer.

Question

Quizplus · Accepted Answer

Independent adjusters may be utilized by insurers in areas where the volume of business is too low for them to maintain their own adjusters. Agents are never authorized to settle claims, as this is typically handled by licensed adjusters. A public adjuster is not a salaried employee, but instead an independent professional hired by a policyholder to represent their interests. Staff claims representatives are employed by the insurer, not the policyholder.

Which of the Following Statements About Claims Settlement Is True