Search
 

Slouching to Gomorrah: Adjuster Pay Plans and Bad Faith

One consumer myth that many adjusters confront is the idea that claim people get paid by how much they "save" on a given claim. As if adjusters get a commission if they can settle a $20,000 auto or

By Staff Writer | Updated on January 16, 2006

One consumer myth that many adjusters confront is the idea that claim people get paid by how much they “save” on a given claim. As if adjusters get a commission if they can settle a $20,000 auto or homeowners claim for, say, $10,000.

Although this fantasy always seemed farfetched, some insurance companies do link adjusters’ incentive compensation to broader financial goals that the company wants to hit. In such arrangements, an adjuster’s base compensation may be fixed, but the claim person earns extra incentive income, depending on the company or claim unit’s ability to meet certain financial targets.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.