NC Public Adjuster key terms

A person licensed by the state to represent an insured policyholder in negotiating, presenting, and settling a first-party property claim against an insurer for compensation, typically paid a percentage of the recovery.

The written agreement between a public adjuster and an insured that authorizes representation on a claim, states the fee or percentage, the services provided, the insured's right to cancel, and other required disclosures.

The insured's legal right to cancel a public adjuster contract within a stated period after signing, without penalty, if the contract was signed outside a declared emergency or catastrophe context.

A statutory limit on the percentage of the claim settlement a public adjuster may charge, often lower during a declared state of emergency or catastrophe than in ordinary circumstances.

The legal obligation of a public adjuster to act in the insured's best interest, avoid conflicts of interest, handle funds honestly, and disclose all compensation arrangements and material facts.

Any direct or indirect contact by a public adjuster to induce an insured to enter a contract for adjusting services; regulated to prevent coercion, misrepresentation, and improper contact during emergencies.

Prohibited business conduct in insurance, including misrepresentation, deceptive advertising, coercion, and bad-faith claim settlement, which may trigger regulatory penalties and private remedies.

An insurer's unreasonable or dishonest handling of a claim, such as denying coverage without a reasonable basis or failing to investigate, which can expose the insurer to extra-contractual liability.

A statutory requirement that an insurer acknowledge, investigate, and pay or deny a claim within specified timeframes after receiving notice and satisfactory proof of loss, with written explanation for delay.

The state requirement that persons who investigate or settle claims for compensation obtain a license, meet prelicensing education and examination requirements, and comply with continuing education and appointment rules.

The formal authorization by which an insurer or licensed adjuster firm designates a licensed individual to act on its behalf as an adjuster, usually filed with the state insurance regulator.

Ongoing coursework required to maintain an active adjuster license, covering ethics, state-specific law, and technical insurance topics within a defined compliance cycle.

An arrangement in which one state recognizes another state's adjuster license or examination as satisfying its own licensing requirements, often through a designated nonresident licensing process.

A financial stake in the preservation of property or a life such that the insured suffers a genuine economic loss if the insured event occurs; required for a valid insurance contract.

The core insurance concept that a claimant should be restored to approximately the same financial position after a loss as before it, no better and no worse, subject to policy limits and deductibles.

A valuation method measuring loss as replacement cost minus depreciation, or fair market value, reflecting the property's worth immediately before the loss rather than the cost to buy new.

The amount needed to repair or replace damaged property with new property of comparable kind and quality, without deduction for depreciation, often subject to policy limits and conditions.

The reduction in value of property over time due to age, wear and tear, or obsolescence, which is subtracted from replacement cost to calculate actual cash value.

A property insurance condition requiring the insured to carry coverage at least equal to a stated percentage of the property's value, with a penalty reducing recovery if underinsured.

The amount of a covered loss the insured must bear before the insurer pays, which may be a flat dollar amount or a percentage of the dwelling limit for certain perils.

A property policy form insuring a dwelling and its contents, typically written for owner-occupants or renters, with named-peril or broad coverage and limited personal liability protection.

A package policy combining property coverage on the dwelling and personal property with personal liability and medical payments coverage, commonly written in HO-2, HO-3, HO-5, HO-4, and HO-6 forms.

A coverage approach that insures only the perils specifically listed in the policy, such as fire, windstorm, hail, or theft, placing the burden on the insured to show the loss resulted from a listed cause.

An open-peril coverage approach insuring all risks of direct physical loss except those expressly excluded, shifting the burden to the insurer to prove an exclusion applies.

A policy provision that removes specified perils, property, or circumstances from coverage, such as earth movement, flood, or intentional loss, and which the insurer bears the burden of proving.

A situation in which a covered and an excluded peril combine to cause one loss, raising questions about whether the entire loss, part of it, or none is payable under the policy.

A property form covering business buildings, business personal property, and related exposures, often using causes-of-loss forms and coinsurance conditions tailored to commercial risks.

Coverage that replaces lost net income and continuing normal operating expenses during the period a business is shut down by a covered property loss, subject to a defined period of restoration.

A branch of property insurance covering movable goods, property in transit, and property away from a fixed location, such as cargo, contractor equipment, and fine arts.

A policy covering liability and physical damage for personal vehicles, with parts for liability, medical payments, uninsured motorists, collision, and other-than-collision losses.

Physical damage coverage paying for damage to the insured vehicle caused by impact with another vehicle or object, or by overturn, regardless of fault, subject to a deductible.

Coverage that pays the insured for bodily injury or property damage caused by a negligent driver who has no liability insurance or cannot be identified, such as a hit-and-run driver.

Coverage protecting an insured against claims for bodily injury or property damage caused by the insured's negligence, including defense costs, up to the policy limit.

An accident or continuous exposure to conditions that results in bodily injury or property damage during the policy period, the trigger commonly used in liability coverage.

A formal, often sworn statement by the insured detailing the amount, date, and circumstances of the loss and supporting documentation, which the insurer may require before paying a claim.

The process of gathering facts about a reported loss, including inspection, photographs, recorded statements, financial records, and expert reports, to determine coverage and valuation.

Damaged property that retains residual value and may be sold or retained by the insurer after a loss is paid, with proceeds typically reducing the net claim payment.

The insurer's right to pursue a third party who caused a loss after paying the insured, recovering the paid amount and thereby preventing double recovery by the insured.

An improvement in the condition or value of property resulting from repairs using new materials for old, which insurers may deduct from claim payments to avoid unjust enrichment.

An official state action declaring a disaster or emergency, which may trigger special rules on adjuster licensing, solicitation, fee limits, and claim handling timelines.