Arizona Adjuster Practice Exam

What type of adjuster is typically employed by an insurance bureau on a contract basis?

1. Independent adjuster

2. Staff adjuster

3. Public adjuster

4. Claims inspector

The correct answer is: Independent adjuster

An independent adjuster is typically employed on a contract basis by an insurance bureau. This type of adjuster operates as an external entity, which allows insurance companies to manage claims without maintaining a full-time internal staff for every claim circumstance. They are often contracted for their expertise in handling specific claims or during periods of heightened claims volume, such as after natural disasters. This relationship allows insurance bureaus to leverage the knowledge and skills of independent adjusters while maintaining flexibility in staffing and resources. In contrast, staff adjusters are full-time employees of an insurance company, directly handling claims and representing the insurer. Public adjusters represent policyholders in their claims against insurance companies, acting in the best interests of the insured. Claims inspectors are typically involved in the preliminary investigation of claims but do not necessarily have the same authority or responsibility for claims adjudication as independent adjusters.