What impact does liability determination have on the insured?

The correct choice emphasizes that liability determination establishes the insured's fault in the incident. This aspect is crucial because the determination of liability directly affects how claims are handled and can influence the financial responsibility of the parties involved. If the insured is found at fault, this could lead to claims being denied or reduced, impacting the insured's financial well-being.

When liability is established, the consequences can include an increase in future insurance premiums. Insurance companies assess risk based on past behavior and may adjust premiums according to how often a policyholder is found to be at fault in claims. While this is an important consideration, it is secondary to establishing liability.

Additionally, while eligibility for claims is also affected by liability, it is not the primary focus; rather, liability directly determines the level of accountability pertaining to the incident. Selling the policy is irrelevant in the context of liability determination as it does not pertain to accountability or claims resolution.

Understanding the nuances of liability determination is essential for adjusters, as it impacts not only the claim's outcome but also the relationships and trust between insurers and insured parties.