Los Angeles Claims Adjuster Property and Casualty Practice Exam 2025 - Free Claims Adjuster Exam Questions and Study Guide

An adjuster must avoid engaging in practices that could be considered the unauthorized practice of law, which is what makes withholding legal practice critical for compliance. This prohibition stems from the notion that adjusting claims can sometimes overlap with legal advice or representation, especially when interpreting policy language, assessing liability, or determining coverage limits.

If an adjuster were to provide legal opinions or advice on claims, they could be seen as crossing into an area reserved for licensed attorneys. This is particularly important because the boundaries of insurance law can be complex and context-dependent, meaning that inappropriate legal interpretation could mislead a claimant or lead to significant liability issues for the adjuster’s company.

Legally, only licensed individuals can give professional legal advice, and adjusters must remain firmly within their boundaries of expertise—which primarily deal with evaluating claims, assessing damages, and negotiating settlements based on the insurance policy rather than providing legal interpretations or advice.