How is an Independent Adjuster best described?

• A. Are Self-Employed and are not affiliated with either insurers or bureaus. They serve as adjuster representatives of insurers, and their services are compensated on a fee-plus-expenses basis for each loss handled.
• B. Are employees of an insurer's internal claims department.
• C. Work exclusively for public adjusting firms.
• D. Represent the insured in all cases regardless of insurer involvement.

Answer: (A)

Independent adjusters are self-employed professionals who adjust claims on behalf of insurers, typically working as contractors either directly for insurers or through independent adjusting firms. They are not employees of a single insurance company, and they are paid on a fee-plus-expenses basis for each loss they handle. This arrangement allows them to represent the insurer’s interests across multiple clients rather than representing the insured, which distinguishes them from staff adjusters (insurer employees) and public adjusters (who represent the insured). The other descriptions point to employees of a company, or to representation of the insured in all cases, which does not fit the independent, contractor-based model.