Public adjusters' fees are typically paid by which party?

• A. Insureds
• B. Insurance companies
• C. The policyholder's employer
• D. The state government

Answer: (A)

Public adjusters’ fees are paid by the insured. A public adjuster is hired by the policyholder to help document, file, and negotiate the claim with the insurance company, and their compensation comes from the insured, typically as a percentage of the settlement or claim payment. This setup keeps the adjuster’s duties aligned with the policyholder’s interests rather than the insurer’s. The insurer handles its own adjusters and claim payments, not the public adjuster’s fees. State rules often require the fee agreement to be in writing and disclosed before services begin, and some plans provide for payment from the settlement proceeds or only if recovery is achieved.