Los Angeles Claims Adjuster Property and Casualty Exam 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer is based on the understanding of specific policy clauses that can grant insurers the authority to settle claims without needing consent from the insured. Many insurance policies include explicit terms that outline the insurer's rights in various scenarios, including conditions under which they can resolve claims independently. This can be especially relevant in malpractice policies, which may have provisions that allow for settlement without the insured's consent to facilitate a more efficient claims process and minimize potential losses.

In contrast to this, settling a claim without the insured's consent based on the size of the claim or verbal agreement is not typically acceptable procedure. Insurers must adhere to the terms laid out within the policy, which would outline their obligations and authority regarding claim settlements. Therefore, the existence of a specific clause within the policy itself justifies the insurer's actions in these scenarios.