What could result from violating ethical standards in claims adjusting?

Violating ethical standards in claims adjusting can lead to administrative action against the adjuster because ethical guidelines are established to ensure fair treatment, honesty, and integrity in the claims process. When an adjuster fails to adhere to these standards, it compromises the reliability of the claims system and can harm the trust between insurers, adjusters, and claimants. Administrative actions can include suspension or revocation of licensure, imposed sanctions, or mandatory training, all aimed at correcting unethical behavior and holding the adjuster accountable.

While a warning letter from the insurance company might be a potential consequence, it would not carry the same weight or impact as formal administrative action. Similarly, a fine from the state regulatory board is also a possibility but generally follows a more serious breach of conduct, whereas administrative actions are broader and can encompass various measures depending on the violation. The idea that there could be no consequences if the adjuster is careful is not tenable since ethical standards are enforced to maintain compliance and protect all parties involved in the claims process.