Under what condition can a person act on behalf of an insured in negotiating a claim settlement?

A person can act on behalf of an insured in negotiating a claim settlement primarily if they are a licensed adjuster. This is due to the regulatory framework governing public adjusters, which requires individuals to hold a valid license to ensure that they are qualified and knowledgeable in representing policyholders' interests. Licensed adjusters are trained to navigate the complexities of insurance claims and are held to professional standards that protect both consumers and the insurance industry.

This requirement is in place to prevent unqualified individuals from handling complex insurance matters that could adversely affect the outcome of a claim. Being licensed ensures that the adjuster understands the nuances of the insurance policy in question and is well-versed in the claims process.