Which statement best describes an adjuster's fiduciary duty?

• A. Advocate for the insured at all times
• B. Act primarily for the insurer's interests
• C. Avoid responsibility for claims decisions
• D. Prioritize claimant's personal preferences

Answer: (B)

The right statement reflects that an adjuster acts as a fiduciary for the insurer, meaning they owe loyalty and primary responsibility to the insurer that hired them. In practice, this requires handling claims with honesty and due care, applying policy terms accurately, and making settlements that protect the insurer’s financial interests while still treating claimants fairly. This duty prevents the adjuster from favoring the insured, avoiding responsibility, or prioritizing a claimant’s personal preferences over what the policy and facts support. The insurer is the principal, and the adjuster must act primarily for the insurer’s interests, balancing fair handling with the insurer’s objectives.