With whom does the insurer normally adjust the loss payment unless another party is named to receive payment?

• A. The mortgagee
• B. The named insured
• C. The service provider
• D. The insurer's agent

Answer: (B)

The standard practice is for the insurer to handle and adjust the loss directly with the person whose name appears on the policy—the named insured. This is because the contract is between the insurer and the insured, giving them the rights to the claim settlement and the duty to cooperate in the claims process. If a different party is named to receive payment, such as a mortgagee under a loss‑payee clause, the insurer must adjust with that party instead to protect the other party’s financial interest. Service providers aren’t the party who typically handle the loss settlement, and while the insurer’s agent may assist, the recipient of the payment is normally the named insured unless a loss-payee arrangement exists.