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What duty does an adjuster have regarding reporting?

  1. To file all claims with the state

  2. To report frequently to the Principal on claim status

  3. To notify policyholders of their coverages

  4. To estimate the costs of repairs

The correct answer is: To report frequently to the Principal on claim status

The duty of an adjuster to report frequently to the Principal on claim status is essential for maintaining clear communication and transparency throughout the claims process. As an adjuster works on a claim, it is vital to keep the Principal, typically the insurance company, informed about the progress, findings, and any issues that may arise. This ongoing reporting allows the Principal to make informed decisions, manage resources effectively, and ensure that policyholders are treated fairly and timely in their claims. Regular updates help to address any potential complications proactively and ensure that all stakeholders are on the same page regarding the status of the claim. This practice fosters trust and accountability between the adjuster and the insurance company and is fundamental to the adjuster's responsibilities in managing claims efficiently and effectively.