In North Carolina, what must an adjuster do if they discover that a claim is fraudulent?

When an adjuster discovers that a claim is fraudulent in North Carolina, they are required to notify the insurance company and document their findings. This is crucial because fraud not only affects the integrity of the insurance system, but also has legal implications. By reporting the discovery of fraud, the adjuster helps protect the company from financial losses and aids in ensuring that justice is served.

Documenting the findings is also vital; it provides a clear record of the investigation which may be necessary for any subsequent legal actions or investigations into the fraudulent claim. This process promotes accountability and transparency within the claims handling process.

It is important for adjusters to act ethically and responsibly, adhering to both legal and professional standards, which underscores the reason why notifying the insurance company and documenting the findings is the appropriate course of action in situations involving discovered fraud.