Rhode Island Insurance Adjuster Exam

What is a primary responsibility of an insurance adjuster?

1. Sell policies to clients

2. Invest funds for the insurance company

3. Investigate claims and determine their validity

4. Underwrite new insurance applications

The correct answer is: Investigate claims and determine their validity

A primary responsibility of an insurance adjuster is to investigate claims and determine their validity. This process involves examining the details of the claim, gathering relevant information, interviewing the involved parties, and assessing damages or losses. The adjuster's role is crucial in ensuring that claims are handled fairly and accurately, which helps prevent fraudulent claims and protects the financial integrity of the insurance company. By evaluating the validity of claims, the adjuster also plays a role in determining the payout amount, ensuring that the policyholder receives the benefits entitled under the insurance policy. This function is essential for the claims process, as it directly impacts the decision-making and resolution of insurance claims. In the context provided, selling policies, investing funds, or underwriting new insurance applications are distinct roles that do not fall within the typical responsibilities of an insurance adjuster. These functions are handled by agents or underwriters in the insurance industry.