West Virginia Adjusters Practice Exam

Benjamin's parents' home was recently flooded because of a hurricane. Benjamin lives at his parents' house and works as a company adjuster. His parent's insurer inadvertently assigns their claim to Benjamin. Which of the following best describes what Benjamin should do in this situation?

1. Benjamin should not take the assignment, because he is not permitted to adjust claims in which he has a financial interest

2. Benjamin should take the assignment since he is familiar with the property

3. Benjamin should take the assignment and notify the Commissioner

4. Benjamin should take the assignment but complete it without bias

The correct answer is: Benjamin should not take the assignment, because he is not permitted to adjust claims in which he has a financial interest

The best course of action for Benjamin in this situation is not to take the assignment because he has a direct financial interest in the outcome of the claim. As a company adjuster, he is expected to conduct adjustments impartially and without bias, but being closely related to the insured party creates a conflict of interest that could compromise his ability to be objective. By not taking the assignment, Benjamin adheres to ethical standards and regulations that necessitate avoiding scenarios that may lead to a perceived or real conflict of interest. This ensures that the claims process remains fair and equitable for all parties involved. The other choices may suggest a potential for adjusting the claim under specific circumstances, but they fail to recognize the inherent conflict of interest Benjamin faces. Taking the assignment, even with intentions of bias-free assessment or notifying authorities, would still place him in a position that is ethically questionable. Thus, the emphasis on not accepting the assignment is fundamentally rooted in maintaining professional integrity and protecting the interests of both the insurer and the insured.