Definition
An Independent Adjuster is a professional claims handler who operates as a freelance contractor. Unlike staff adjusters that are employed directly by an insurance company, Independent Adjusters are often hired on a temporary basis. They are typically compensated on a per claim basis or via fee schedules, to adjust claims on behalf of insurance companies, particularly during periods of high claim volume. This role is crucial in ensuring timely, efficient, and fair handling of claims, especially following major disasters or events that result in large numbers of claims.
Function and Role
Independent Adjusters are tasked with multiple responsibilities:
- Investigation: Gathering facts, evidence, and documentation to ascertain the extent of the insurance company’s liability in claims.
- Assessment Evaluate damages, estimate repair costs, and determine claim value.
- Negotiation Engage with the claimant and, optionally, their representatives to reach satisfactory claim settlements.
- Reporting: Documenting and reporting their findings and decisions to the insurance company.
- Compliance: Ensuring that all claims and procedures comply with relevant state andpotentially federal insurance regulations.
Requirements and Qualifications
To become an Independent Adjuster, individuals must adhere to specific state or regional licensing requirements, including prescribed training and examinations. These regulations are to uphold standards within the profession, ensuring knowledge of the legislative framework governing claims such as the ‘Insurance Contracts Act’ where applicable.
Impacts of an Independent Adjuster’s Work
Independent Adjusters play a pivotal role during occasions of high-volume claims, as they allow insurance companies to scale resources appropriately and manage claims effectively without compromising the quality of service. Their expertise and unbiased assessment help ensure that claims are handled fairly and promptly, fostering trust and satisfaction among claimants.
For more on professional standards and certification, explore-wise urging the National Association of Insurance Commissioners (NAIC) and state-specific insurance department websites.
