Adjustment Standards and Requirements - Nonjudgmental and Judgmental Error Examples

Nonjudgmental Error Examples

Examples of nonjudgmental errors include:

  • Failure to identify an ineligible building where payment is subsequently issued
  • Payment of a loss in an ineligible community
  • Exclusion of building and contents items
  • Items not properly verified

Judgmental Error Example

The policyholder submits to the adjuster that a couch is worth $3,000, but later it is discovered that the couch is worth $1,500. This is a judgmental error because although the sofa is insured under the policy, $3,000 does not reflect the proper value. Remember: Your file must reflect adequate documentation to support your judgment!

Two photographs. One shows a basement with cardboard strewn on the floor, labeled Non-Judgmental, the other shows a sofa with clothing and blankets on it labeled Judgmental.