Adjusting Practices and Claims Handling
Adjusting practices tests the claim lifecycle: intake, investigation, coverage analysis, reserving, negotiation, settlement, and recovery. Minnesota-specific issues include modified comparative fault, no-fault arbitration, prompt-payment standards, and documentation that supports a good-faith file.
Investigation and coverage
Confirm the policy, date of loss, insured status, and cause of loss. Separate coverage questions from damage questions. Interview witnesses, obtain records, inspect the scene, and document every contact. Reserve promptly and adjust reserves as facts change. Never promise coverage before the analysis is complete.
Minnesota fault and recovery
Minnesota uses modified comparative negligence under Minn. Stat. §604.01: a claimant at 50% fault recovers damages reduced by that percentage; at 51% or more, recovery is barred. No-fault claims up to $10,000 may go to Minnesota no-fault arbitration. Subrogation should be preserved by notice and by avoiding releases that waive the insurer's rights.
Worked example
An auto claimant has $100,000 in damages and is 20% at fault. Under modified comparative fault, recovery is $100,000 × 80% = $80,000. If the claimant were 51% at fault, recovery would be zero. The adjuster documents the fault evidence, applies the percentage, and reserves the net exposure.
Traps
Do not confuse comparative fault with joint and several liability; do not pay a claim without a documented coverage position; and do not let a release waive subrogation against a third party without authority.