Louisiana P&C Adjuster Practice Exam

If a claim includes lost wages, what action should an adjuster take to verify the loss?

1. Contact the employee directly

2. Verify the loss with the employer

3. Obtain bank statements from the employee

4. Request pay stubs from the employee

The correct answer is: Verify the loss with the employer

Verifying lost wages requires confirmation of the employment status and the amount of income the employee typically earns. The most reliable source for this information is the employer, who has access to payroll records and can provide accurate details about the employee's earnings, including any standard pay rates and typical hours worked. Contacting the employer can also clarify the nature of the employee's absence and confirm whether it aligns with the information provided by the employee regarding the claim. This process helps ensure that any claims for lost wages are substantiated and accurate, preventing fraudulent claims and ensuring that the insurance process is based on verified data. While contacting the employee or requesting documentation like bank statements or pay stubs may provide some information, these methods do not guarantee accuracy and could lead to misunderstandings or misrepresentations of the lost wages. The employer holds the most comprehensive and up-to-date records necessary for the verification process.