NH Claims Adjuster common mistakes
NH Claims Adjuster · Understand the traps and how to avoid them.
Treating 'actual cash value' and 'replacement cost' as interchangeable when computing a settlement, and paying replacement cost on a policy that only owes ACV (or vice versa).
Candidates memorize the two definitions as vocabulary but never practice applying them to a loss with depreciation, so under exam pressure they default to the larger number or the term that appeared in the scenario's headline.
What to do instead
Before calculating, write the policy's valuation clause in one line, then build a small depreciation table (replacement cost, age, useful life, depreciation, ACV) and state which figure the policy owes. Drill five losses where the answer flips based on the clause alone.
Confusing the insured's duty to notify with the adjuster's duty to investigate, and answering questions about 'first steps' with claim-handling tasks that belong to the adjuster rather than the insured.
Both lists are taught together in adjusting courses, so the actor in the question stem gets skimmed and the candidate answers from the wrong role's checklist.
What to do instead
Rewrite every duty list with an explicit subject: 'Insured must…' versus 'Adjuster must…'. When reading a question, underline who is performing the action before looking at the answer choices.
Missing that a policy condition (proof of loss, suit limitation, appraisal, subrogation) can bar or delay recovery even when coverage clearly exists, and answering as if coverage alone decides the claim.
Candidates focus on the insuring agreement and exclusions because those feel like 'real' coverage analysis, and treat conditions as procedural trivia that the exam will not test.
What to do instead
For every practice scenario, add a second question: 'Is any condition unsatisfied, and what is the consequence?' Build a one-page table of conditions with the deadline, who acts, and the effect of noncompliance.
Applying the New Hampshire specific number (proof-of-loss deadline, claim response time, cancellation notice period, producer licensing renewal, continuing education hours) from memory without checking whether the question is asking about a state rule or a policy provision.
State-regulation numbers are numerous and similar, and candidates mix them with the policy's own notice periods because both appear as 'days' in the answer choices.
What to do instead
Keep a single NH numbers sheet organized by topic (claim handling, cancellation/nonrenewal, licensing, CE, producer conduct), and label each entry 'statute/rule' versus 'policy condition'. Rehearse it until the source of each deadline is automatic.
Labeling a loss as 'covered' or 'not covered' without checking exclusions, endorsements, and the policy period/territory in sequence.
Candidates jump to the peril listed in the scenario and stop, because the insuring agreement is the most salient text and exclusions require a second mental pass.
What to do instead
Use a fixed four-step checklist on every coverage question: (1) is the property/person an insured object, (2) did a covered peril occur, (3) does an exclusion apply, (4) does an endorsement add or remove anything. Write the steps out on scratch paper each time until it is habitual.
Mishandling liability claims by accepting a claimant's demand figure or a release without analyzing comparative fault, other insurance, or the insured's cooperation obligations.
Liability scenarios read like negotiation problems, and candidates answer with the outcome that seems fair rather than the outcome the policy and tort rules produce.
What to do instead
Practice separating three questions in liability items: what is the insured's legal liability, what does the policy cover, and what is the adjuster's authority. Note where comparative negligence reduces the recoverable amount before the policy limit is applied.
Misreading the question stem's qualifier - 'EXCEPT', 'BEST', 'LEAST likely', 'NOT required' - and selecting the true statement when the false one was requested.
Under time pressure the eye lands on the topic keywords and skips the single word that inverts the task; this is the most common cause of lost points on otherwise known material.
What to do instead
Circle or mentally box the qualifier before reading any option, then restate the task to yourself in a half-sentence ('I need the one that is false'). If two answers seem right, re-read the stem rather than the options.
Confusing the roles and authority of agent/producer, adjuster, and insurer when answering licensing and regulatory-conduct questions.
The three roles overlap in daily practice, and candidates assume whoever handled the sale also has claim authority or that the adjuster's license covers all claim types.
What to do instead
Build a role matrix: who may solicit, who may bind, who may investigate and settle, what license each needs, and what conduct is prohibited. Test yourself by assigning each scenario action to exactly one role.
Ignoring subrogation and salvage when computing what the insurer ultimately pays, and answering with the gross loss amount.
Candidates treat the loss payment as the end of the problem, because recoveries are taught in a separate chapter and never integrated into settlement math.
What to do instead
On every settlement exercise, add a final line for 'net cost to insurer after deductible, salvage, and subrogation recovery', and state whether subrogation is available given the facts (e.g., insured waived rights against a neighbor).
Skipping the deductible, coinsurance, or limit mechanics on property losses and reporting the full repair estimate as the payable amount.
These adjustments sit at the end of the calculation and are easy to forget when the scenario gives a clean damage figure that feels like the answer.
What to do instead
Adopt a fixed settlement template - limit, coinsurance test if applicable, covered damage, deductible, valuation method, other insurance - and fill every line even when the value is zero. Practice until the template is written from memory in under a minute.