ADJUSTER PRO, SECTION 2
QUESTIONS WITH [A GRADED]
ANSWERS
Agent y- yANS--one ywho yreceives ythe yauthority yto yact yon ybehalf yof ysomeone yelse
Sales yagent y- yANS--Contracted yto ysell yand yservice yinsurance ypolicies yon ybehalf yof
ythe yinsurer
Adjusters y- yANS--Contracted yto ysettle yclaims ythat yarise yagainst ythe yinsurer
Power yto ybind y- yANS--What ythe yagent ysays yor ydoes ycan ybind ythe yinsurer
Agents yshould ytake ythe yutmost ycare yin ywhat ythey ydo yand ysay
Even yif ythe yagent ymakes ymistakes, ythe yinsurer ymay yhave yto yaccept ythem
Responsibilities yof yan yAgent y- yANS--Adhere yto yor yfollow ythe ycontract
Use yreasonable yjudgement
Provide yall ynecessary yinformation yand ydocumentation yto ythe yinsurer
Three ytypes yof yauthority y- yANS--express, yimplied, yapparent
Express yAuthority y- yANS--Authority ydirectly ygranted yto yan yagent yvia ythe ycontract:
-sell ypolicies
-collect ypremiums
-issue ybinders
-offer ydiscounts
-cancel yinsurance
Implied yAuthority y- yANS--A yform yof yindirect yauthority
The yauthority ythat ythe ypublic yreasonably ybelieves ythe yagent yto yhave
-portraying yself yas ya yrepresentative
-wearing ya yname ytag ywith ya ycompany ylogo
-handing yout ycompany ybusiness ycards
-words yand yactions ythat ygo yhand yin yhand ywith yexpress yauthority yand yare yusually
yin yorder yto yperform yan yagents yduties
Apparent yAuthority y- yANS--when ythe yinsurer ydoes ynot ycorrect yits yagent yeven ywhen
ythe yagent ymay ybe yacting yin yerror
-granted ywhen ythe yinsurer ydoes ynot yact y
-by ycorrecting ythe yagent, ythe yinsurer yimplies yconsent
,The yFour yTypes yof ySales yAgents y- yANS--Independent yagent
Exclusive yagent
General yagent
Direct ywriter
Independent yagent y- yANS---self yemployed
-offer yinsurance yfrom ymore ythan yone ycompany yat ya ytime
-they ycan ycompare yand ygive yrate yquotes yfrom ydifferent ycompanies
-find ya ypolicy ythat ysuits ythe ycustomer
Exclusive yagent y- yANS---Also ycalled ycaptive yagent
-Commissioned
-Represents yonly yone yinsurer yand yonly ytheir ypolicies
General yagent y- yANS---works yfor yone yinsurance ycompany
-trains yand ysupervises yagent yfor ythat ycompany
Direct ywriter y- yANS---salaried yemployee
-works yfor yone ycompany
Claimant y- yANS--an yindividual yor ybusiness ythat ymakes ya yclaim yfor ypayment yafter ya
yloss yoccurs
Claim yFunction y- yANS--The ypart yof ythe yinsurance ycontract ythat ylets ythe yinsurer
yfulfill yits ypromises yto ythe yinsured.
Adjusting y- yANS--The yprocess yof ycomparing ya yclaimant's ylosses yto ythe ypromises
ymade yin yan yinsurance ypolicy
Insurance yadjuster y- yANS--An yagent ywho yprocesses yinsurance yclaims yfor ya ysalary,
ya yfee, yor ycommission
Who ydoes ythe yadjuster ywork yfor? y- yANS---an yinsurer
-a yprivate ycompany y
-an yadjusting ycompany y(adjusting ybureau)
-the yclaimant y
*adjusters ycan ywork yfor ythe yinsured yor ythe yinsurer*
Staff yAdjuster y- yANS---employed yby yonly yone yinsurer y
-salaried yemployees
-can ywork ylocally, yregionally, yor ynationally y
-also ycalled y"company" yadjusters
-work yfor yinsurers ysuch yas yState yFarm, yNationwide yInsurance, yand yAetna
Independent yAdjuster y- yANS--- yAlso ycalled y"fee yadjuster" yor y"bureau yadjuster"
- yNot ycontracted yto yany yparticular yinsurer
, - ySelf-employed
- yProcesses yclaims, ysometimes yfor ymultiple yinsurers yat ythe ysame ytime
- yPaid yby yfee yschedule, ydaily yrate, yor ytime y+ yexpense
- ySometimes ypaid yon ya ycommission ybasis y(percentage yof ythe yfinal ysettlement
yamount)
Public yAdjuster y- yANS--*Hired yby ypolicyholder y(the yclaimant)
*Represents ythe ypolicyholder yin ythe yclaim
*Charges ya ycommission, yusually yabout y10% yof ysettlement
*Hired ywhen ythe yinsured yknows ythe yinsurer ywill ybe ymaking ya ypayment yfor ythe
yclaim
*Helps ydetermine ythe yproper yidentification y& yvaluation yof ya yloss
*Specializes yin yappraising y& ynegotiating yclaims
Emergency yAdjuster y- yANS---temporarily ylicensed yby yinsurance ycommissioner ywhen
ythere yis ya ycatastrophe y
-may ybe yadjusters yfrom yother ystates y
-may ybe yan yindividual ywho yis ytemporarily ycertified yby yan yinsurer yto yadjust yclaims y
-only yallowed yto ywork yon yclaims yrelated yto ythe ydisaster.
An yinsurance yadjuster y- yANS---acts yas ythe yFiduciary yAgent
-has ythe ypower yto ybind
-must yreport yto ythe yprincipal
Fiduciary yAgent y- yANS--The yAdjuster yacts yas ya yfiduciary yAgent yfor ythe yprincipal
y(insurer). y
In yorder yto ybe ya yfiduciary yAgent, yan yadjuster ymust:
y-have yauthority ygranted yby yan yinsurer yvia ya ycontract. y
y-act yfor, yand yon ybehalf yof, ythe yprincipal y(the yinsurer). y
y-protect ythe yprincipal's yfinancial yand yproperty yinterests.
Being ya yFiduciary yAgent y- yANS--Adjuster's yresponsibilities yas yfiduciary yagent yfor
ythe yprincipal:
-always yacts yin ythe yprincipal's ybest yinterests ywith yutmost ygood yfaith y(honesty, yfair
ydealing, yand yfull ydisclosure)
-never yact ywith yself yinterest y
-never yprofit ywithout yexpress ypermission
-never yact yif ya yconduct yof yinterest yexist
The yPower yto yBind y- yANS--the yprincipal yis ybound yby ythe yadjuster's ydecisions yand
yactions. y
This yauthority:
- yis ygranted yto yadjuster yin ywriting y
- ymeans ythe yadjuster ymay yact yon ybehalf yof ythe yemployer y
- ybinds ythe yemployer
QUESTIONS WITH [A GRADED]
ANSWERS
Agent y- yANS--one ywho yreceives ythe yauthority yto yact yon ybehalf yof ysomeone yelse
Sales yagent y- yANS--Contracted yto ysell yand yservice yinsurance ypolicies yon ybehalf yof
ythe yinsurer
Adjusters y- yANS--Contracted yto ysettle yclaims ythat yarise yagainst ythe yinsurer
Power yto ybind y- yANS--What ythe yagent ysays yor ydoes ycan ybind ythe yinsurer
Agents yshould ytake ythe yutmost ycare yin ywhat ythey ydo yand ysay
Even yif ythe yagent ymakes ymistakes, ythe yinsurer ymay yhave yto yaccept ythem
Responsibilities yof yan yAgent y- yANS--Adhere yto yor yfollow ythe ycontract
Use yreasonable yjudgement
Provide yall ynecessary yinformation yand ydocumentation yto ythe yinsurer
Three ytypes yof yauthority y- yANS--express, yimplied, yapparent
Express yAuthority y- yANS--Authority ydirectly ygranted yto yan yagent yvia ythe ycontract:
-sell ypolicies
-collect ypremiums
-issue ybinders
-offer ydiscounts
-cancel yinsurance
Implied yAuthority y- yANS--A yform yof yindirect yauthority
The yauthority ythat ythe ypublic yreasonably ybelieves ythe yagent yto yhave
-portraying yself yas ya yrepresentative
-wearing ya yname ytag ywith ya ycompany ylogo
-handing yout ycompany ybusiness ycards
-words yand yactions ythat ygo yhand yin yhand ywith yexpress yauthority yand yare yusually
yin yorder yto yperform yan yagents yduties
Apparent yAuthority y- yANS--when ythe yinsurer ydoes ynot ycorrect yits yagent yeven ywhen
ythe yagent ymay ybe yacting yin yerror
-granted ywhen ythe yinsurer ydoes ynot yact y
-by ycorrecting ythe yagent, ythe yinsurer yimplies yconsent
,The yFour yTypes yof ySales yAgents y- yANS--Independent yagent
Exclusive yagent
General yagent
Direct ywriter
Independent yagent y- yANS---self yemployed
-offer yinsurance yfrom ymore ythan yone ycompany yat ya ytime
-they ycan ycompare yand ygive yrate yquotes yfrom ydifferent ycompanies
-find ya ypolicy ythat ysuits ythe ycustomer
Exclusive yagent y- yANS---Also ycalled ycaptive yagent
-Commissioned
-Represents yonly yone yinsurer yand yonly ytheir ypolicies
General yagent y- yANS---works yfor yone yinsurance ycompany
-trains yand ysupervises yagent yfor ythat ycompany
Direct ywriter y- yANS---salaried yemployee
-works yfor yone ycompany
Claimant y- yANS--an yindividual yor ybusiness ythat ymakes ya yclaim yfor ypayment yafter ya
yloss yoccurs
Claim yFunction y- yANS--The ypart yof ythe yinsurance ycontract ythat ylets ythe yinsurer
yfulfill yits ypromises yto ythe yinsured.
Adjusting y- yANS--The yprocess yof ycomparing ya yclaimant's ylosses yto ythe ypromises
ymade yin yan yinsurance ypolicy
Insurance yadjuster y- yANS--An yagent ywho yprocesses yinsurance yclaims yfor ya ysalary,
ya yfee, yor ycommission
Who ydoes ythe yadjuster ywork yfor? y- yANS---an yinsurer
-a yprivate ycompany y
-an yadjusting ycompany y(adjusting ybureau)
-the yclaimant y
*adjusters ycan ywork yfor ythe yinsured yor ythe yinsurer*
Staff yAdjuster y- yANS---employed yby yonly yone yinsurer y
-salaried yemployees
-can ywork ylocally, yregionally, yor ynationally y
-also ycalled y"company" yadjusters
-work yfor yinsurers ysuch yas yState yFarm, yNationwide yInsurance, yand yAetna
Independent yAdjuster y- yANS--- yAlso ycalled y"fee yadjuster" yor y"bureau yadjuster"
- yNot ycontracted yto yany yparticular yinsurer
, - ySelf-employed
- yProcesses yclaims, ysometimes yfor ymultiple yinsurers yat ythe ysame ytime
- yPaid yby yfee yschedule, ydaily yrate, yor ytime y+ yexpense
- ySometimes ypaid yon ya ycommission ybasis y(percentage yof ythe yfinal ysettlement
yamount)
Public yAdjuster y- yANS--*Hired yby ypolicyholder y(the yclaimant)
*Represents ythe ypolicyholder yin ythe yclaim
*Charges ya ycommission, yusually yabout y10% yof ysettlement
*Hired ywhen ythe yinsured yknows ythe yinsurer ywill ybe ymaking ya ypayment yfor ythe
yclaim
*Helps ydetermine ythe yproper yidentification y& yvaluation yof ya yloss
*Specializes yin yappraising y& ynegotiating yclaims
Emergency yAdjuster y- yANS---temporarily ylicensed yby yinsurance ycommissioner ywhen
ythere yis ya ycatastrophe y
-may ybe yadjusters yfrom yother ystates y
-may ybe yan yindividual ywho yis ytemporarily ycertified yby yan yinsurer yto yadjust yclaims y
-only yallowed yto ywork yon yclaims yrelated yto ythe ydisaster.
An yinsurance yadjuster y- yANS---acts yas ythe yFiduciary yAgent
-has ythe ypower yto ybind
-must yreport yto ythe yprincipal
Fiduciary yAgent y- yANS--The yAdjuster yacts yas ya yfiduciary yAgent yfor ythe yprincipal
y(insurer). y
In yorder yto ybe ya yfiduciary yAgent, yan yadjuster ymust:
y-have yauthority ygranted yby yan yinsurer yvia ya ycontract. y
y-act yfor, yand yon ybehalf yof, ythe yprincipal y(the yinsurer). y
y-protect ythe yprincipal's yfinancial yand yproperty yinterests.
Being ya yFiduciary yAgent y- yANS--Adjuster's yresponsibilities yas yfiduciary yagent yfor
ythe yprincipal:
-always yacts yin ythe yprincipal's ybest yinterests ywith yutmost ygood yfaith y(honesty, yfair
ydealing, yand yfull ydisclosure)
-never yact ywith yself yinterest y
-never yprofit ywithout yexpress ypermission
-never yact yif ya yconduct yof yinterest yexist
The yPower yto yBind y- yANS--the yprincipal yis ybound yby ythe yadjuster's ydecisions yand
yactions. y
This yauthority:
- yis ygranted yto yadjuster yin ywriting y
- ymeans ythe yadjuster ymay yact yon ybehalf yof ythe yemployer y
- ybinds ythe yemployer
