What significant event might prompt an adjuster to review reserves on a claim?

A request to reopen a claim is a significant event that would prompt an adjuster to review reserves on a claim because reopening indicates that there may be new developments or issues that need to be considered. When a claim is reopened, it often signifies that additional information has come to light or that there are ongoing medical or rehabilitation treatments that could result in increased costs. Consequently, the adjuster must reassess the reserves to ensure that they accurately reflect the potential liabilities related to the reopened claim.

Adjusters maintain reserves to estimate the potential future payout on claims, and these reserves need to be adjusted based on current circumstances to ensure financial adequacy. When a claim is reopened, there is typically an expectation that additional funds may be required, thus necessitating a thorough review of the reserves to account for the new circumstances.

In contrast, while discovering new mitigating evidence may impact the claim's outcome, it does not automatically require an adjustment in reserves unless the evidence directly affects ongoing costs. A change in the claim administrator might influence the process or management of the claim, but it does not inherently alter the claim's financial projections. Lastly, shifts in state regulations would necessitate compliance adaptations but would not directly trigger a reserve review unless those changes impacted the nature of claims and payouts specifically