What does Actual Authority allow an adjuster to do?

Actual Authority grants an adjuster the ability to act on behalf of the insurer either through explicit or implied authority. This means that an adjuster can take actions and make decisions that are both clearly defined in their role (explicit authority) and those that are reasonably inferred from the duties they are expected to perform (implied authority).

For example, if an insurance company explicitly tells an adjuster that they can negotiate claims, that constitutes explicit authority. However, if the adjuster is expected to assess damages and settle claims within a certain range based on industry standards, that may not be stated explicitly but is generally understood, constituting implied authority.

This understanding of authority is crucial in ensuring that adjusters can effectively execute their roles while still aligning with the insurer’s policies and guidelines.