Question

After her business suffered damage in a fire, Jane filed a claim with Acme Insurance, which dispatched Bob to adjust it, even though he was not allowed to adjust commercial claims. He investigated Jane's losses and submitted his estimate to Acme Insurance, which issued her a settlement check based on that estimate. Bob had _______ because Acme Insurance accepted his estimate and paid Jane's claim.

A) Fulfilled his duties appropriately
B) Violated insurance regulations
C) Demonstrated exceptional investigative skills
D) Exceeded the scope of his authority

Answer 1

Bob exceeded the scope of his authority by adjusting a commercial claim for Acme Insurance, which he was not permitted to do, even though the company accepted his estimate and paid the claim.

Step-by-step explanation:

After her business suffered damage in a fire, Jane filed a claim with Acme Insurance. Bob, who was dispatched by Acme Insurance to adjust the claim, investigated the losses and submitted his estimate despite not being allowed to adjust commercial claims. When Acme Insurance accepted his estimate and paid based on that, Bob had exceeded the scope of his authority.