West Virginia Adjusters Practice Exam

What does an insurance adjuster primarily do?

1. Assesses and settles claims

2. Issues insurance policies

3. Markets insurance products

4. Underwrites insurance policies

The correct answer is: Assesses and settles claims

An insurance adjuster primarily assesses and settles claims. This role involves evaluating the details of insurance claims, investigating the circumstances surrounding the claims, and determining the appropriate compensation owed to the policyholder based on the terms of the policy. The adjuster analyzes evidence, loss reports, and claims documentation to arrive at a fair settlement that satisfies both the insurer and the insured. In contrast, issuing insurance policies pertains to the role of an insurance agent or broker, who is responsible for selling policies to customers. Marketing insurance products is another distinct function typically associated with agents and the marketing departments of insurance companies, focusing on attracting potential policyholders. Underwriting, meanwhile, involves evaluating risks and determining premiums, which is a separate process that precedes the issuance of insurance policies, not the adjustment of claims. Therefore, assessing and settling claims is the core responsibility of an insurance adjuster.