How should an adjuster handle fraudulent claims?

An adjuster should report the fraud to the insurance company and potentially to law enforcement because addressing fraudulent claims is critical for maintaining the integrity of the insurance system. By doing so, the adjuster helps protect the company and its policyholders from the financial repercussions of fraudulent activity. Reporting the claim ensures that a thorough investigation can take place, which may involve gathering evidence and collaborating with investigators to mitigate overall loss and prevent future fraud.

When fraudulent claims are detected, it is essential for adjusters to follow established protocols to ensure that the situation is handled appropriately and legally. This proactive approach reinforces the commitment to honesty and accountability within the insurance industry, allowing legitimate claims to be processed efficiently while keeping scams at bay. Additionally, this action may lead to the prosecution of individuals attempting to commit fraud, thus serving as a deterrent to future fraudulent claims.