Arizona Adjuster Practice Exam

What is one of the first actions an adjuster takes when assigned to a liability claim?

1. File the claim

2. Verify Coverage

3. Contact the claimant

4. Estimate damages

The correct answer is: Verify Coverage

Verifying coverage is a critical first step for an adjuster when assigned to a liability claim because it allows the adjuster to determine whether the policy in question applies to the specific circumstances of the claim. This involves reviewing the insurance policy’s terms, conditions, and exclusions to ensure that the coverage is appropriate for the loss being claimed. Understanding policy coverage helps the adjuster establish the insurer's obligation to pay for potential damages or liabilities. By confirming that coverage exists, the adjuster can move forward with effectively assessing the claim, communicating with the involved parties, and proceeding to the next steps, such as estimating damages or gathering additional information. Other actions such as filing the claim, contacting the claimant, or estimating damages are important steps in the claims process, but they are usually conducted after confirming that the coverage exists to ensure that the claim is valid and within the policy limits.