Alberta General Insurance Level 1 Practice Exam

Who employs a staff adjuster?

1. The insured

2. The insurer

3. Independent firms

4. Public entities

The correct answer is: The insurer

Staff adjusters are employed by insurance companies, also known as the insurer. This is because they are responsible for investigating claims made by policyholders and making decisions about the extent of coverage and payouts. Options A, C, and D are incorrect because the insured, independent firms, and public entities do not have the authority or responsibility to make decisions about insurance claims. The insured is the party making the claim and seeking coverage, independent firms are hired by insurance companies to provide adjusting services, and public entities do not typically offer insurance coverage. Only the insurer, who holds the policy and bears the financial risk, employs staff adjusters.