What is 'loss adjustment' in the context of insurance claims?

Loss adjustment refers specifically to the evaluation and settlement of claims made by policyholders after a loss event occurs. This process involves a thorough investigation of the claim, which may include gathering evidence, estimating the value of the loss, and determining whether the claim is valid under the terms of the insurance policy.

During the loss adjustment process, insurance adjusters play a crucial role in assessing the extent of the damage, reviewing documentation provided by the claimant, and negotiating settlements that align with the policy coverage. This procedure is essential as it directly impacts the insurance company's financial responsibilities and the policyholder's compensation for their loss.

The other options do not accurately capture the essence of loss adjustment. They relate to other aspects of insurance management and policy handling but do not focus on the evaluation and settlement of claims, which is the core of loss adjustment.