Which step follows notice of loss?

• A. Investigation and adjuster evaluation
• B. Reserve setting
• C. Settlement
• D. Subrogation

Answer: (A)

When a loss is reported, the very first action is to assign an adjuster who will investigate the claim, gather facts, review the policy for coverage, and estimate the damages. This investigation and evaluation establish what actually happened, who is liable, and how much the insurer might owe. That understanding is essential before any other steps can occur, such as setting reserves for the expected payout, negotiating a settlement, or pursuing subrogation. Reserve setting depends on the results of the evaluation, and settlement or subrogation follow once liability and damages are clarified. So the investigation and adjuster evaluation is the immediate next step after notice of loss.