Mississippi Property & Casualty Practice Exam

Which professional determines the value of loss in insurance?

1. Claims adjuster

2. Underwriter

3. Actuary

4. Broker

The correct answer is: Actuary

The claims adjuster is the professional primarily responsible for determining the value of loss in an insurance context. They assess the damage, interview the involved parties, review policy details, and evaluate various factors to determine how much the insurance company should pay for a claim. This role is critical in the claims process as it involves investigating the circumstances surrounding the loss and applying the policy provisions to reach a fair settlement amount. While the actuary plays a significant role in the insurance industry, such as calculating risks and determining premium rates based on statistical analysis, they are not directly involved in the claims process or in assessing individual loss values. Underwriters focus on risk assessment and deciding whether to accept or declin applicants based on predetermined underwriting guidelines, while brokers represent the interests of clients in the insurance marketplace, helping them find suitable insurance policies. Thus, the claims adjuster is the key professional who determines the value of loss after an incident has occurred.