North Carolina Adjuster Practice Exam

The correct choice relates to the concept of apparent authority of the adjuster. In an insurance context, apparent authority occurs when a reasonable third party would assume that an agent has the authority to act on behalf of the insurer based on the agent's actions or representations. If the adjuster, through their words or behavior, led Angie to believe that she should receive a settlement check for her damaged floors, this perceived authority could validate her decision to keep the check, even if the specific damage was not actually covered under her policy.

This principle suggests that the adjuster's conduct might create an impression of legitimacy regarding the settlement, which combines aspects of agency and representation. As Angie's understanding of the adjuster's authority influences her actions, it can provide a basis for her to retain the settlement check.

In contrast, other options deal with different aspects of insurance authority and processing. While an insurance agent's authorization may imply some level of legitimacy, it does not necessarily relate to this situation unless explicit permission was confirmed. Binding authority refers to the actual power an agent has under their contract, not merely the appearance of it. Lastly, the claim processing being improper isn't a direct reason for Angie to keep the check; it focuses more on procedural issues rather than the authority given to the