Legal Definitions - adjust

Adjust

In legal and financial contexts, to adjust means to determine, settle, or modify an amount or an agreement, often to resolve a claim or manage a debt. It involves reaching a new understanding or calculation after reviewing relevant factors.

Here are some examples:

• Insurance Claim Adjustment: Imagine a small business owner whose storefront window is shattered by a falling tree branch during a severe storm. The owner files a claim with their property insurance company. The insurance company then sends a claims adjuster to inspect the damage, assess the cost of repair or replacement, and determine the final amount the company will pay the business owner to cover the loss. The act of evaluating the damage and deciding on the payout amount is how the insurance company adjusts the claim.

• Debt Repayment Adjustment: Consider a recent college graduate who has lost their job and is struggling to make their student loan payments. They contact their loan provider to explain their financial hardship. The loan provider might then work with the graduate to create a new payment schedule, perhaps lowering the monthly payment amount or temporarily pausing payments, to make the debt more manageable. This process of modifying the original loan terms to fit the borrower's current situation is an example of adjusting the debt agreement.