According to the law, the term adjustment may appear in varied contexts, as a synonym for terms with unrelated definitions:
General Definition
Adjust: To settle or to bring to a satisfactory state, so that the parties are agreed in the result; as, to adjust accounts. When applied to a liquidated demand, the verb "adjust" has the same meaning as the word "settle" in the same connection, and means to pay the demand. When applied to an unliquidated demand, it means to ascertain the amount due or to settle. In the latter connection, to settle means to effect a mutual adjustment between the parties and to agree upon the balance.
Common Uses
General Debt
Debtor and creditor adjustment: As the term appears in an assignment for the benefit of creditors, "Creditor" means one who has a definite demand against the assignor, or a cause of action capable of adjustment and liquidation at trial. 6 Am J2d Assign for Crs § 109. Adjustable Rate Loan: Loan arrangement which permits the lender to change the interest rate based on a specific factor such as the prime lending rate charged by banks. Adjusting agency: In one sense, a collection agency; in another sense, an agency representing a debtor in making an arrangement with his creditors for the settlement of his obligations by modification of the indebtedness. AUTHORITY: 15 Am J2d Collect §§ 1, 2. Adjusted Balance Method: Method used by a credit card issuer to compute the balance on which a debtor must pay interest. The adjusted balance method determines the outstanding balance at the beginning of the current billing cycle and then deducts payments made during that cycle. Cap: Limit placed on the amount an interest rate or monthly payment can increase during an adjustment period or over the life of an adjustable rate loan.
Insurance
Insurance adjustment, the settlement of an insurance claim; the determination for the purposes of a settlement of the amount of a claim, particularly a claim against an insurance company, giving consideration to objections made by the debtor or insurance company, as well as the allegations of the claimant in support of his claim. Adjustment of claims is not confined to claims against insurance companies. An allowance made by a creditor, particularly a storekeeper, in response to a complaint by the debtor respecting the accuracy of the account or other claim, or a reduction in the claim or account made to induce a prompt payment, is in a proper sense an adjustment. Adjustment clause, in an insurance policy. Public adjuster: One whose business is the adjustment of claims for insurance, employed, not regularly for full-time by one person or company, but by members of the public as their need of an adjuster arises. A public adjuster is hired by the insured only and can only represent the interest of the insured, not the insurance company. A public adjuster's allegiance on handling the claim is to the insured, not the insurance company. A public adjuster is required to be licensed by the State Department of Insurance in the state in which the public adjuster is handling claims. Source- NAIC Adjuster: A person who makes a determination of a claim, especially a claim against an insurance company, and objections made thereto by the debtor or insurance company, for the purpose of arriving at an amount for which the claim will be settled. Sometimes acting as the agent of the insurance company or debtor, at other times as the agent of the claimant. Staff Adjuster- a staff adjuster works for one insurance company, typically in their internal claim's department. A staff adjuster's allegiance on handling the claim is to the insurance company, not the insured. A staff adjuster is not always required to be licensed by the State Department of Insurance in the state they are working as the insurer typically holds a license with the state department of insurance which allows the insurer to regulate their own staff adjusters.
Independent Adjuster- an independent adjuster works for many insurance companies, typically on a contractual at need basis. An independent adjuster may represent the interest of multiple insurance companies at the same time. An independent adjuster's allegiance on handling the claim is to the insurance company, not the insured. An independent adjuster is not always required to be licensed by the State Department of Insurance in the state they are working as this varies state to state and is regulated by the state department of insurance. During emergency situations, especially when the Governor of a State or the Present of the United States declares a state of emergency, independent adjusters are typically granted temporary licenses to assist insurers in handling an influx of claims.