What is the fundamental principle adjusters should follow to ensure fair settlements?

The principle of working in good faith is essential for adjusters to ensure fair settlements. This concept is rooted in the obligation to treat all parties involved—clients, insurers, and claimants—honestly and fairly. By working in good faith, adjusters build trust, foster effective communication, and contribute to the overall integrity of the claims process.

This approach requires adjusters to thoroughly assess claims, avoid any behavior that could be perceived as deceptive or manipulative, and strive for a resolution that is equitable for all parties. When adjusters adhere to this principle, they not only comply with ethical standards but also help maintain a positive reputation for the insurance industry as a whole.

The other choices may involve elements of an adjuster's responsibilities, but they do not encapsulate the fundamental principle of fairness and integrity as clearly as working in good faith does. Negotiating aggressively could lead to contentious interactions, while documenting everything, although crucial for substantiation, does not directly address the fairness aspect in negotiations. Following company policies is important for compliance and procedural integrity, but without the foundation of good faith, those policies may not be interpreted or applied equitably.