What legal responsibility does an adjuster have to a policyholder?

An adjuster has a legal responsibility to provide a fair and prompt investigation of the claim, which is a fundamental aspect of their role in the claims process. This responsibility ensures that the adjuster acts in good faith towards the policyholder while also fulfilling the duties owed to the insurance company. By conducting a thorough investigation, the adjuster gathers all relevant information and evidence needed to evaluate the validity of the claim, which helps in making unbiased and informed decisions.

Fairness is crucial in maintaining the trust between the insurer and the insured, as policyholders expect that their claims will be handled equitably and without unnecessary delays. This duty is often dictated by state regulations and industry standards designed to protect consumers and promote ethical practices within the insurance sector.