Adjustment (law)

Last updated • 7 min readFrom Wikipedia, The Free Encyclopedia

According to the law, the term adjustment may appear in varied contexts, as a synonym for terms with unrelated definitions:

Contents

General Definition

Adjust: [1]

  1. To settle or to bring to a satisfactory state, so that the parties are agreed in the result; as, to adjust accounts. [2]
  2. When applied to a liquidated demand, the verb "adjust" has the same meaning as the word "settle" in the same connection, and means to pay the demand. When applied to an unliquidated demand, it means to ascertain the amount due or to settle. In the latter connection, to settle means to effect a mutual adjustment between the parties and to agree upon the balance. [3]

Common Uses

General Debt

Insurance

Staff Adjuster- a staff adjuster works for one insurance company, typically in their internal claim's department. A staff adjuster's allegiance on handling the claim is to the insurance company, not the insured. A staff adjuster is not always required to be licensed by the State Department of Insurance in the state they are working as the insurer typically holds a license with the state department of insurance which allows the insurer to regulate their own staff adjusters.

Independent Adjuster- an independent adjuster works for many insurance companies, typically on a contractual at need basis. An independent adjuster may represent the interest of multiple insurance companies at the same time. An independent adjuster's allegiance on handling the claim is to the insurance company, not the insured. An independent adjuster is not always required to be licensed by the State Department of Insurance in the state they are working as this varies state to state and is regulated by the state department of insurance. During emergency situations, especially when the Governor of a State or the Present of the United States declares a state of emergency, independent adjusters are typically granted temporary licenses to assist insurers in handling an influx of claims.

Accounting

Principles of Law

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<span class="mw-page-title-main">Insurance</span> Equitable transfer of the risk of a loss, from one entity to another in exchange for payment

Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

A lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the lienee and the person who has the benefit of the lien is referred to as the lienor or lien holder.

<span class="mw-page-title-main">Life insurance</span> Type of contract

Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses.

Title insurance is a form of indemnity insurance predominantly found in the United States and Canada which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Unlike some land registration systems in countries outside the United States, US states' recorders of deeds generally do not guarantee indefeasible title to those recorded titles. Title insurance will defend against a lawsuit attacking the title or reimburse the insured for the actual monetary loss incurred up to the dollar amount of insurance provided by the policy.

A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments. Borrowers are still responsible for property taxes or homeowner's insurance. Reverse mortgages allow older people to immediately access the home equity they have built up in their homes, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower is generally not required to repay any additional loan balance in excess of the value of the home.

Home insurance, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

<span class="mw-page-title-main">Subrogation</span>

Subrogation is the assumption by a third party of another party's legal right to collect a debt or damages. It is a legal doctrine whereby one person is entitled to enforce the subsisting or revived rights of another for one's own benefit. A right of subrogation typically arises by operation of law, but can also arise by statute or by agreement. Subrogation is an equitable remedy, having first developed in the English Court of Chancery. It is a familiar feature of common law systems. Analogous doctrines exist in civil law jurisdictions.

<span class="mw-page-title-main">Security interest</span> Legal right between a debtor and creditor over the debtors property (collateral)

In finance, a security interest is a legal right granted by a debtor to a creditor over the debtor's property which enables the creditor to have recourse to the property if the debtor defaults in making payment or otherwise performing the secured obligations. One of the most common examples of a security interest is a mortgage: a person borrows money from the bank to buy a house, and they grant a mortgage over the house so that if they default in repaying the loan, the bank can sell the house and apply the proceeds to the outstanding loan.

A claims adjuster, desk adjuster, field adjuster, or general adjuster investigates insurance claims by interviewing the claimant and witnesses, consulting police and hospital records, and inspecting property damage to determine the extent of the insurance company's liability. Other claims adjusters who represent policyholders may aid in the preparation of an insurance claim.

Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt. It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI was widely sold by banks and other credit providers as an add-on to the loan or overdraft product.

Debt settlement is a settlement negotiated with a debtor's unsecured creditor. Commonly, creditors agree to forgive a large part of the debt: perhaps around half, though results can vary widely. When settlements are finalized, the terms are put in writing. It is common that the debtor makes one lump-sum payment in exchange for the creditor agreeing that the debt is now cancelled and the matter closed. Some settlements are paid out over a number of months. In either case, as long as the debtor does what is agreed in the negotiation, no outstanding debt will appear on the former debtor's credit report.

Mortgage insurance is an insurance policy which compensates lenders or investors in mortgage-backed securities for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer. The policy is also known as a mortgage indemnity guarantee (MIG), particularly in the UK.

A public adjuster is a professional claims handler/claims adjuster who represents the insured/policyholder in their insurance claim. Depending on the state, licensed public adjusters are required to prove competency in a variety of ways; written examination, experience time frames, and background checks. In many states, a public adjuster is a lawful fiduciary under either state or federal jurisdiction to legally and professionally represent the rights of an insured/policyholder during a insurance claim. The role of a public adjuster is to recover the best possible indemnification for their claims. Individuals may prefer to avoid the stress of claims handling themselves, and choose public adjuster representation to guide them through the process and minimize the time which must be spent to file their claim properly. Public adjusters negotiate with insurance companies/carriers for an adjustment or settlement. Primarily, public adjusters review the applicable insurance policy to determine coverage for the loss, assess the cause of loss to determine applicable coverage, assist the insured to prepare detailed scope and cost estimates to prove their loss. Public adjusters also provide insurance policy interpretation to determine if coverage exists, and to negotiate with the insurance company/carrier to a final and fair settlement.[1] Most public adjusters charge a percentage of the settlement.

Insurance bad faith is a tort unique to the law of the United States that an insurance company commits by violating the "implied covenant of good faith and fair dealing" which automatically exists by operation of law in every insurance contract. In common law countries such as Australia and the UK, the issue is usually framed in the context of a failure of the duty of utmost good faith originating in English insurance law, which does not constitute a tort but rather provides the insured a contractual remedy unique to insurance law.

<span class="mw-page-title-main">Mortgage loan</span> Loan secured using real estate

A mortgage loan or simply mortgage, in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form of a collateral for a benefit (loan)".

Insurance law is the practice of law surrounding insurance, including insurance policies and claims. It can be broadly broken into three categories - regulation of the business of insurance; regulation of the content of insurance policies, especially with regard to consumer policies; and regulation of claim handling wise.

A Cumis counsel is "an attorney employed by a defendant in a lawsuit when there is a liability insurance policy supposedly covering the claim, but there is a conflict of interest between the insurance company and the insured defendant."

Bond insurance, also known as "financial guaranty insurance", is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security. It is a form of "credit enhancement" that generally results in the rating of the insured security being the higher of (i) the claims-paying rating of the insurer or (ii) the rating the bond would have without insurance.

The New York State Banking Department was created by the New York Legislature on April 15, 1851, with a chief officer to be known as the Superintendent. The New York State Banking Department was the oldest bank regulatory agency in the United States.

The Dodd–Frank Wall Street Reform and Consumer Protection Act was created as a response to the financial crisis in 2007. Passed in 2010, the act contains a great number of provisions, taking over 848 pages. It targets the sectors of the financial system that were believed to be responsible for the financial crisis, including banks, mortgage lenders, and credit rating agencies. Ostensibly aimed at reducing the instability that led to the crash, the act has the power to force these institutions to reduce their risk and increase their reserve capital.

References

  1. quoting BALLENTINE'S LAW DICTIONARY Copyright (c) 1969 Lexis Law Publishing, a division of Reed Elsevier, plc.
  2. State ex rel. Sayre v Moore, 40 Neb 854, 59 NW 755.
  3. State v Staub, 61 Conn 553, 568.
  4. 29A Am J Rev ed Ins § 1604.
  5. AUTHORITY: Larson v Lesser, (Fla) 106 So 2d 188.
  6. First National Bank v Manchester Fire Assur. Co. 64 Minn 96, 98, 66 NW 136
  7. AUTHORITY: Aetna Ins. Co. v Shryer, 85 Ind 362, 363; 7 Am J2d Attys § 86.
  8. 1 Am J2d Acctg § 44.
  9. Field v Auditor, 83 Va 882, 887
  10. AUTHORITY: Ex parte Anderson, 191 Or 409, 229 P2d 633, 230 P2d 770, 29 ALR2d 1051
  11. 1 2 quoting A Dictionary of Modern Legal Usage Copyright (c) 1990 Bryan A. Garner, Oxford University Press, Inc.
  12. AUTHORITY: 31 Am J Rev ed Lab § 371