Flashcards in Adjuster Duties and Practices Deck (11)
•help the insured prove the loss to the insurer;
•help the insured understand the terms and conditions of the policy; and
•conduct a thorough investigation to determine whether a third person is responsible for the loss so that subrogation can be instituted to recover
The Property Adjuster
•to the insured, to protect him or her against exposure to liability to third parties as a result of an accidental tort that falls within the definition of “occurrence”;
•to the claimant, to treat him or her fairly and, if liability exists, to resolve the claim promptly without ignoring the duty to the insured; and
•to the insurer, before agreeing to resolve a claim, to establish that coverage exists for the loss under the terms and conditions of the policy, that the insured is liable to the third party, and that the most reasonable resolution of the claim has been achieved.
The Liability Adjuster
Consultants who specialize in assisting insureds in presenting claims to insurance companies in a manner that will maximize their recovery.
Represent insurers and self-insureds on a contract basis.
There are three basic steps in every investigation. They apply to information of all types and all levels of complexity. They are:
an insured's formal statement of loss required by an insurance company before it will determine whether the policy covers the loss" (Black's Law Dictionary, 7th ed.).
A proof of loss
The proof of loss should include the following (8 items):
•The date and cause of the loss
•A statement explaining the insured's interest in the damaged property
•A list of other parties who may have an interest in the damaged property
•A description of other insurance that might pertain to the loss
•A description of the specifications of damaged buildings
•Detailed repair estimates
•A detailed inventory of damaged personal property that is supported by purchase receipts;
•Receipts for additional living expenses incurred;
•Records that support the fair rental value loss.
True depreciation must consider:
•Economic obsolescence due to causes independent of the property
•Effective age as compared with other properties considering renovations and reconstruction
•Future life expectancy
traditional definition of the term: the cost to replace with new property of like kind and quality, less depreciation.
Actual Cash Value
If the decision is to restore or salvage, areas of concern include the following (5):
•Damage from smoke and soot
•Salvageable stock (in which the insurer has the right to remove insured stock for salvage)