Los Angeles Claims Adjuster Property and Causality Practice Exam

What type of claims are public adjusters prohibited from handling according to state laws?

1. Property Claims

2. Health Claims

3. Liability Claims

4. Automobile Claims

The correct answer is: Liability Claims

Public adjusters are specifically trained and licensed to assist policyholders in negotiating property insurance claims. Their expertise lies primarily in areas related to property, such as damage to homes or businesses. State laws generally restrict public adjusters from handling claims that fall outside this domain, particularly liability claims. Liability claims typically involve allegations of negligence or wrongdoing that results in harm to a third party. These claims require an understanding of different legal issues and principles of liability that may fall outside the realm of property insurance. Because public adjusters are not trained as legal professionals, handling these types of claims could lead to issues of legal liability or unauthorized practice of law. In contrast, public adjusters are permitted to deal with property claims, health claims, and automobile claims within the boundaries of property damage coverage, assuming they pertain to property insurance policies. This specialization ensures that policyholders receive focused and informed assistance in navigating their specific claims.