What is the primary ethical obligation of an adjuster?

The primary ethical obligation of an adjuster is to act in good faith. This principle is foundational to the role of the adjuster, as it emphasizes the duty to deal fairly with all parties involved in the insurance claim process. Acting in good faith means that the adjuster must provide honest assessments, ensure accurate representation of the facts, and maintain transparency throughout the evaluation and settlement of claims.

Good faith practices enhance trust in the insurance process, serving both the adjuster's employer and the policyholders. An adjuster's commitment to good faith ensures that they uphold ethical standards and contributes to a fair resolution for claims, rather than prioritizing the interests of the insurance company over the rights of the insured.

In contrast, minimizing payout costs, maximizing claim amounts, or strictly adhering to client instructions may conflict with an adjuster's obligation to maintain integrity and fairness. Such focuses can lead to unethical practices that undermine the trustworthiness of the adjuster's role, while good faith serves as an essential guiding principle for ethical conduct in the industry.