New Jersey Public Adjuster Practice Exam 2025 – Your All-in-One Resource for Exam Success!

The major difference between a public adjuster and an insurance adjuster lies in their representation and loyalty. Public adjusters are licensed professionals who represent the interests of policyholders in the claims process, ensuring that the policyholder receives a fair settlement for their claims. Their primary duty is to advocate for the policyholder, often working on behalf of individuals or businesses that need assistance navigating the complexities of an insurance claim.

On the other hand, insurance adjusters work for the insurance company. Their role is to assess claims and determine the insurer's liability in accordance with the terms of the policy. They focus on protecting the interests of the insurance company and may conduct investigations, evaluate damages, and negotiate settlements from the standpoint of the insurer.

This distinction is crucial because it highlights the opposing interests in the claims process. Public adjusters seek to maximize the payout for the policyholder, while insurance adjusters aim to minimize costs for the insurer. This difference can significantly impact the outcome of claims and the support that policyholders receive during the claims process.

The other options introduce various misconceptions about the roles and functionalities of these adjusters, but the core distinction remains centered on whom they represent and serve in the claims process.