Los Angeles Claims Adjuster Property and Causality Practice Exam

What is required from the insurer as part of their duties?

1. To immediately settle all claims

2. Perform a detailed investigation and create a claim file

3. Contact the insured for minimal information

4. Avoid collecting extensive records

The correct answer is: Perform a detailed investigation and create a claim file

The insurer has a duty to perform a detailed investigation and create a claim file because this process is essential for evaluating the validity and extent of the claim being made. A thorough investigation allows the insurer to gather all relevant facts, assess damages accurately, and determine liability. By creating a detailed claim file, the insurer ensures that there is a comprehensive record of the claim that reflects all findings, communications, and decisions made during the claims process. This documentation is crucial for both the insurer and the insured, as it provides a basis for resolving disputes and can support the insurer's decisions if the claim is later challenged or evaluated in a legal context. This thoroughness also fosters fairness in evaluating claims and upholds the duty of good faith owed to the insured, ensuring that all claims are handled fairly and with due diligence.