North Carolina Adjuster Practice Exam

Which type of adjuster is employed by a single insurance company and is typically paid a salary?

1. Independent adjuster

2. Pooled adjuster

3. Public adjuster

4. Staff adjuster

The correct answer is: Staff adjuster

Staff adjusters are employed directly by a specific insurance company and perform their duties on behalf of that company. Their primary role involves evaluating claims, determining the validity of the claims, and estimating the amounts to be paid out in settlements. Because they are employees of the insurance company, they usually receive a salary rather than working on a commission or fee basis. In contrast, independent adjusters are self-employed or work for an adjusting firm, servicing multiple insurance companies and often being paid on a fee basis per claim. Public adjusters advocate for policyholders and work independently, charging fees for their services, which typically come from the settlement amounts. Pooled adjusters, on the other hand, do not fit the typical employment scenario, as their work often involves collaboration among multiple companies or adjusting groups without a direct employer-employee relationship. Thus, the distinctive employment structure and payment method of staff adjusters sets them apart in the insurance industry.