| Breaches in ethical and moral behavior are all too | | | | cash in exchange for a $125,000 insurance claim |
| common when large sums of money are at stake | | | | check on a loss of only $18,000 after Hurricane |
| and the industry of insurance claims adjusting is | | | | Humberto. The man in this case was turned in by his |
| certainly no exception. Claims adjusters, more than | | | | adjuster but one can imagine some less ethical claims |
| many other professionals, will almost continuously | | | | personnel taking the money and putting in an |
| face temptations of greed. Why does this happen? | | | | imaginative claim for $125,000. Claim inflation is |
| An insurance adjuster, particularly an independent | | | | probably the single greatest temptation an adjuster |
| insurance adjuster, has a surprising amount of power | | | | will face and not merely from the perspective of |
| to wield. When a claim is filed, the adjuster may | | | | taking a cut of the final payment from the claimant. |
| dictate in large part the speed by which the claim will | | | | Because adjusters are typically paid a percentage of |
| be processed and the final settlement amount. In the | | | | the final claim amount, there is always a temptation |
| case of a small automobile claim, this may be less the | | | | to bump the claim up another notch to get to that |
| case as a dented fender and broken headlight leave | | | | next percentage level. However, the two are in |
| little wriggle room for malfeasance. However, in the | | | | effect the same and must be avoided altogether. An |
| case of a medium to large loss residential or | | | | adjuster who repeatedly pads claims, in addition to |
| commercial property claim, the possibilities for abuse | | | | committing a crime, will eventually be an adjuster out |
| become far greater. $15,000 can literally be added or | | | | of work. Fraudulent claim activity is being investigated |
| subtracted from a claim with a few keystrokes and | | | | and prosecuted like never before. |
| it is here that adjusters can run into trouble. Take for | | | | Strength of moral character is an important trait for |
| example the recent fraud attempt in Beaumont, | | | | any professional but particularly for those who hold |
| Texas. | | | | the power to give and take away - a power given |
| A hotel manager was arrested for offering $20,000 | | | | to claims adjusters. |