Los Angeles Claims Adjuster Property and Causality Practice Exam

How does an adjuster assess whether other insurance may cover part of a claim?

1. By evaluating personal assets

2. Through investigation of existing policies

3. By reviewing the initial report

4. Through witness testimonies

The correct answer is: Through investigation of existing policies

The determination of whether other insurance may cover part of a claim hinges on the adjuster's ability to thoroughly investigate existing policies. This process involves examining the specifics of the insurance policies that may be applicable to the incident in question. Adjusters look for overlapping coverage, the limitations of each policy, and the nature of the losses reported to ascertain if multiple policies might come into play. For example, if a claim involves property damage, the adjuster must consider whether the insured has additional policies that might apply, such as a homeowner's policy, renter's insurance, or even an auto insurance policy if relevant to the claim circumstances. Understanding the terms, coverages, and exclusions of these policies is essential to accurately assess liability and potential payments. The other methods listed, such as evaluating personal assets, reviewing the initial report, or relying on witness testimonies, do not provide the necessary insight into policy coverage and therefore would not effectively help an adjuster ascertain whether additional insurance might contribute to a claim.