What can the insurer defer until the actual loss can be determined?

The adjustment of a covered loss can be deferred until the actual loss can be determined because it involves the evaluation and verification of the loss amount that an insured party has incurred. This is particularly relevant in crop insurance, where the nature and extent of the damage may not be immediately apparent and can vary based on conditions such as weather events, crop maturity, and market fluctuations.

Deferring the adjustment allows the insurer to ensure that they are acting on accurate, finalized information regarding the extent of the loss. This is important because the initial assessment may change as conditions evolve or as more details come to light. Insurers typically wait for thorough evaluations, such as final yield reports or physical inspections, to accurately assess the covered loss, which ensures that claims are assessed fairly and correctly.

In contrast, the payment of claims cannot be delayed indefinitely; it typically follows the adjustment process. Reporting losses is also time-sensitive, as policyholders must report claims within a stipulated timeframe. The issuance of the policy is unrelated to the loss adjustment process, as it occurs when the insured decides to enter into coverage regardless of loss occurrence. Thus, deferring the adjustment of a covered loss is essential for proper claims handling in crop insurance.