How is the power to bind an adjuster typically transferred?

The power to bind an adjuster is typically transferred through a written contract. This formal document specifies the relationship between the parties involved and outlines the authority granted to the adjuster in handling claims. Such contracts ensure that all parties have a clear understanding of the expectations and responsibilities, as well as any limitations of authority that the adjuster may have.

Written contracts provide legal protection and enforceability, which is crucial in the insurance industry where agreements must be clear and binding. The existence of a documented agreement helps prevent misunderstandings or disputes regarding the extent of the adjuster’s powers.

While there may be other ways in which authority is perceived or understood, such as through implied positions or roles, these methods lack the formal recognition and clarity that a written contract provides. Contracts serve as the foundation for the adjuster's authority, ensuring that they act within the scope defined by the insurer.