Adjustment

An adjustment is a change made to correct or improve a situation, often to ensure fairness or accuracy. In financial or insurance contexts, it involves modifying a value—like a payment or claim amount—to reflect specific factors such as expenses, policy details, or circumstances. Adjustments help ensure that calculations are fair and accurate, accounting for any relevant differences or updates. Essentially, it’s a thoughtful correction or modification made to better match real-world conditions or requirements.