Which of the following is a fiduciary responsibility of a claims adjuster?

• A. Maintain loyalty to the company
• B. Reveal all underwriting facts to the underwriter
• C. Withhold pertinent information from the company
• D. Properly account for all monies

Answer: (A)

Fiduciary duties arise when someone acts as an agent for another and must place that principal’s interests first. A claims adjuster acts on behalf of the insurer, so the core expectation is loyalty to the company and acting in its best interests within the policy and the law. This loyalty means decisions are made to serve the insurer’s objectives, avoid personal conflicts, and maintain trust in how the claim is handled.

Revealing underwriting facts to the underwriter isn’t about the adjuster’s fiduciary role; it mixes functions and can blur boundaries between underwriting and claims. Withholding pertinent information from the company violates the duty of trust inherent in the fiduciary relationship. While properly accounting for monies is important and relates to the integrity of the claim process, the fundamental fiduciary obligation emphasized here is to maintain loyalty to the insurer—the party that empowered the adjuster to act on its behalf.