Insurance adjusters’ role and responsibilities

Published September 21, 2023

Insurance adjusters play a unique role in the business of insurance, particularly in their relationship with insureds and insurers. Licensees who are engaged in insurance loss adjusting have requirements and responsibilities that must be met to ensure fair treatment of consumers and insurers.

The Insurance Council Code of Conduct lays out requirements for all licensees. Adjusters must also comply with the requirements outlined in Section 11, as this sets out specific additional duties applicable to licensees engaged in the role of insurance adjusting.
 
These include:

• Licensed adjusters must properly identify themselves, their principals and their role as an adjuster
• Adjusting claims promptly and fairly
• Protecting the confidential information and interests of the insureds and principals
• Disclosing all information material to the loss or claim including ensuring insureds are informed of their policy coverages, rights, and obligations
• Acting within the authority and instructions of their principals
• Declining to act where there is an undisclosed conflict of interest or a financial interest in a loss or claim. 

 
Level 1 licensed adjusters are also subject to a number of restrictions under the Insurance Council’s Rule 6 (3) which prohibits them from adjusting or settling a loss except under the direct supervision of a level 2 or level 3 insurance adjuster licensee. Level 1 adjusters must also have their adjusting reports approved and countersigned by a level 2 or level 3 insurance adjuster licensee.
 
Nominees of adjusting firms remain accountable for the activities of their firm’s licensees and are expected to provide sufficient oversight for public protection, in compliance with the Financial Institutions Act, the Insurance Act, and the Insurance Council’s Rules and Code of Conduct.
 
To learn more about licensee responsibilities and requirements, please visit the Licensee Resources page of our website. If you still have questions, please contact a member of our Practice & Quality Assurance team at practice@insurancecouncilofbc.com or 604-695-2008.