Which of the following statements about claims settlement is true?
A) Agents are never authorized to settle claims.
B) Independent adjustors may be used in a geographic area where the volume of business is too low for an insurer to have its own adjustors.
C) A public adjustor 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 adjustors may be used in areas with low business volume as they are not staffed permanently by the insurer. Agents do not settle claims, and public adjusters are not salaried employees of any insurer but are professionals who work for policyholders to advocate for their claims. Staff claims representatives, also known as claims adjusters, are hired by insurers to settle claims on their behalf.

Which of the Following Statements About Claims Settlement Is True