West Virginia Adjusters Practice Exam

As a public adjuster, Devin is permitted to:

1. advise the claimant on legal matters

2. make underwriting decisions

3. recommend a contractor to work on a loss he is adjusting, as long as he tells the insured whether he will be compensated for the referral

4. settle claims on behalf of the insurer

The correct answer is: advise the claimant on legal matters

The role of a public adjuster is specifically focused on aiding policyholders in the claims process, rather than engaging in legal matters. Public adjusters are not licensed attorneys, and advising claimants on legal matters typically falls outside their scope of practice, which is primarily to assist in the preparation, negotiation, and settlement of insurance claims. In this context, the correct choice highlights a critical aspect of a public adjuster's limitations. While they can provide guidance on the insurance claim process, they should refrain from giving legal advice, as doing so could lead to potential legal issues and ethical dilemmas. Regarding other options, making underwriting decisions is clearly beyond the role of a public adjuster, as underwriting involves assessing risk, which is a function of the insurance company. Recommending a contractor can be allowed, providing transparency about any referral fee is disclosed, but is not strictly the primary role of a public adjuster. Settling claims on behalf of the insurer contradicts the fundamental purpose of public adjusters, who represent the interests of the claimant rather than the insurer.