Arizona Adjuster Practice Exam

Which of the following is a primary duty of a liability adjuster?

1. To protect the insured

2. To deny all claims

3. To investigate claims only

4. To represent the interests of the claimant

The correct answer is: To protect the insured

The primary duty of a liability adjuster is to protect the insured. This encompasses evaluating the circumstances surrounding the claim, assessing the potential liabilities, and ensuring that the insured's interests are prioritized during the claims process. The adjuster must carefully evaluate claims to determine their validity and the extent of the insurance company's obligations while managing the risks associated with the claim. In this context, protecting the insured means acting in their best interests, which includes providing a thorough investigation of the claim, negotiating settlements, and ensuring compliance with coverage terms. This role requires a balanced approach that considers both the insured's needs and the requirements of the policy. The other options reflect misunderstandings of the adjuster's responsibility. While investigation is a key part of the role, claiming that the adjuster only investigates or represents the interests of the claimant misrepresents their primary duty. It's essential for liability adjusters to manage claims in a way that safeguards the insured party rather than solely focusing on denying claims or siding with the claimant. Therefore, the answer accurately captures the core responsibility of a liability adjuster within the insurance framework.