What is "adjusting" in insurance terms?

"Adjusting" in insurance specifically refers to the process of investigating and settling claims. This involves evaluating the circumstances surrounding an insured event, determining the extent of the insurer's liability, and negotiating the appropriate settlement amount. Adjusters gather information, often from various sources including claimants, witnesses, and experts, to ensure a fair and comprehensive assessment of the claim.

This role is crucial as it directly impacts how claims are processed and resolved, influencing not only the satisfaction of the policyholders but also the financial integrity of the insurance company. It requires a solid understanding of coverage, policy provisions, and legal frameworks within which the insurance operates.

The focus on claim investigation and settlement distinguishes adjusting from other aspects of insurance, such as determining policy costs, which is more related to underwriting, negotiating policy terms, which pertains to the initial purchase of coverage, and processing premium payments, which relates to the administrative side of maintaining coverage. Understanding these nuances is essential for anyone operating within the insurance industry, particularly those looking to obtain an adjuster's license.