All of the following correctly describe reasons for the use of independent adjusters, EXCEPT:

All of the following correctly describe reasons for the use of independent adjusters, EXCEPT:



A. Insurers may use independent adjusters when special skills and expertise are needed, for example to investigate aircraft accidents.
B.In the case of a catastrophic loss such as a hurricane, an insurer may not have sufficient staff to manage the large number of claims, and may use independent adjusters.
C. In some areas it is not economically feasible to set up claim offices, and insurers may contract with independent adjusters to handle claims in these remote areas.
D. The insured may retain an independent adjuster if settlement negotiations with the insurer are not progressing satisfactorily.


Answer: D.The insured would not retain an independent adjuster if settlement negotiations with the insurer were not progressing satisfactorily. (Independent adjusters handle claims for insurers for a fee, not for insureds.)

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