Los Angeles Claims Adjuster Property and Causality Practice Exam

Which of the following statements best describes the role of claims adjusters?

1. They negotiate prices on behalf of the policyholders

2. They inspect claims to determine the insurance company's liability

3. They oversee customer service departments for insurance companies

4. They are responsible for underwriting new policies

The correct answer is: They inspect claims to determine the insurance company's liability

The role of claims adjusters primarily involves investigating and assessing claims made by policyholders. This includes inspecting the claim, gathering relevant information, and determining the insurance company's liability regarding the claim. Claims adjusters analyze the details of the incident, review policy coverage, and decide whether the claim is valid and how much compensation, if any, is warranted under the terms of the policy. The other options do not accurately encapsulate the core responsibilities of a claims adjuster. Negotiating prices on behalf of policyholders typically pertains more to brokers or agents rather than adjusters. Overseeing customer service departments falls outside the remit of claims adjusters, as their focus is specifically on claim assessment and resolution. Lastly, underwriting new policies involves evaluating risks and determining policy terms, which is a different function entirely from the role of claims adjusters.