Another suspect caught attempting to defraud an insurance company by claiming that his vehicle was stolen then returned back to his driveway all damaged. Wow, sounds really plausible. Click here for the link.
Monthly Archives: April 2008
A Picture Is Worth A Thousand Words… And maybe more.
As the saying goes, a picture is worth a thousand words. As an auto damage appraiser in the claims industry, appraisers must remember… YOU are the eyes and ears for the adjuster. Taking excellent photos is not difficult at all if one takes a little time to prepare and focus on doing a quality job.
First off, the required tools necessary to do the job correctly consists of a good digital camera, a pocket rod (measuring tape), tire tread depth measuring gauge, magnetic arrows, a mat ( to lie down on) and an additional source of light ( such as a spotlight ) if inspections are done at night or in dark environments.
With these tools you have everything you need to do a perfect job. The next step is to think like an adjuster. Don’t just go through the motions but remember each file has a story to tell and your job is to tell that story. Adjusters need to know the height of the impact, direction of the damage and the severity to the location. This can make all of the difference in a liability investigation. It is possible your photos may need to be utilized in litigation. There is nothing more embarrassing than presenting poor or insufficient photos to a judge.
Proper photo protocol can be classified in 4 categories:
1. Admin photos: These photos identify the vehicle. Vin number, license plate, mileage, condition ratings of interior, exterior, missing items, tire condition, etc. Don’t rely on the vin number on the door. It may have been replaced before. Always confirm on the dash panel as well.
2. Overview photos: Photos of all 4 sides of the vehicle and the general overall “condition” of interior and exterior.
3. Unrelated damage photos: Documented photos of any damage that is not related to the loss.
4. Impact photos: As many photos as possible of the damage from every possible angle with the damage clearly shown. A measurement of the damage, direction of the impact and the location and depth of dents taken from all angles can show the true severity.
The rule of thumb is very simple. When in doubt, take more photos than you feel are necessary.
Safeco profits down 22%!
Safeco released 1st quarter results. Click here.
Safeco, the insurer that this week agreed to be acquired by Liberty Mutual Group, said profit fell for a fifth straight quarter as winter storms, tornadoes and the rising cost of car crashes pushed up claims.
7 arrested in CA for suspected auto arson and insurance fraud.
Insurance fraud cost’s policyholders higher premiums every year. Here’s an example in California where seven were arrested in suspected arson and insurance fraud. As auto claims professionals the combination of alert adjusters, detailed appraisers and a solid SIU department working together can help combat such fraud. It is imperative that files are documented with great detail and field inspections are done flawlessly. Cases such as these could be the next file that crosses your desk. California Insurance Commissioner Poinzer stated, “Every Californian pays the equivalent of a $500 tax per year because of insurance fraud. Criminals beware: purposely destroying your vehicle will not result in a paycheck – it will result in jail time.”
Click here for the full press release from the California DOI
Watch your car if you live in Modesto,CA.
Better watch your car if you live in Modesto, CA. The town had been hit hard by mortgage foreclosures and now leads the nation in car thefts according a study by the NICB. Click here for more.
Liberty Mutual To Buy Safeco!
Back in February Safeco, shares dropped due to a large increase in auto claims. At that time the company stated it would watch it claims more closely to contain severity and possibly raise rates. In a highly competitive auto insurance market, raising rates at the time of higher gas prices and shaky consumer sentiment would probably be difficult.
Today it was published that Liberty Mutual has agreed to purchase Safeco. Click here for the article.
SB 775 in Missouri to prohibit insurers from requiring use of certain shops
Missouri now has a bill in the pipeline that will require insurers to inform vehicle owners of the right to choose the repair shop of their choice. At the moment a vehicle owner states they have chosen a repair shop, the insurer would not be allowed to try to refer them to another shop. This bill at first glance appears similar to many other states and that of California.
Additionally, there is some language regarding appraisers. Appraisers must be licensed to working in Missouri and the estimate cannot be altered by anyone unless it is physically inspected by the person writing it. Attached is the link to the bill summary and full text link for all of the details. SB775 Link
Auto Damage Appraisal Claims Survey Results In!
Reply
When choosing the services of an auto damage appraisal company, what is the primary focus for claims managers? What do the adjusters themselves look for? These questions are vital for those companies looking to provide the best service. In the recent annual 2008 edition of “The Auto Damage Appraisal Survey”, some interesting facts were revealed. 500 claims managers and 750 adjusters were contacted for this report. The following are some of the “key” factors separated by managers and adjusters and ranked from 1-5 in importance with 1 being primary.
Managers:
1. We want strict adherence to our business rules
2. Low cost, low fee appraisals
3. 24 hour contact with owners
4. Cycle time
5. Few complaint calls to my staff
Adjusters:
1. Supplement cycle time
2. Adherence to guidelines
3. Low appraisal fees
4. Cycle time
5. 24 hour contact with vehicle owners
The interesting feedback shows that cycle time, which was a hot button issue in 2007, has dropped in the rankings to a mid level concern. Appraisal quality, supplement cycle time and low fees were the factors most important to managers and adjusters. With customer service as the buzz word these days due to a highly competitive auto insurance market, our survey team was a little surprised by the lack of importance placed on cycle time as in past years. The focus now appears to be strict adherence to a company’s business rules while resolving supplements quickly.
All of these surveyed factors are vital in their own right to the success of a claims department. Failure to follow business rules leads to excessive leakage and poor supplement handling can lead to delayed repairs and excessive rental. At the same time, however, poor cycle time leads to customer dissatisfaction.
In the ever changing insurance industry, the key focus points can change rapidly.
California SB 1371 UPDATE: passes committee
Here’s the latest update. It appears the bill passed committee.
CURRENT BILL STATUS
MEASURE : S.B. No. 1371
AUTHOR(S) : Correa.
TOPIC : Insurance: automobile repair capping.
HOUSE LOCATION : SEN
+LAST AMENDED DATE : 04/09/2008
TYPE OF BILL :
Active
Non-Urgency
Non-Appropriations
Majority Vote Required
Non-State-Mandated Local Program
Non-Fiscal
Non-Tax Levy
LAST HIST. ACT. DATE: 04/09/2008
LAST HIST. ACTION : From committee with author's amendments. Read second
time. Amended. Re-referred to Com. on B., F. & I.
COMM. LOCATION : SEN BANKING, FINANCE AND INSURANCE
COMM. ACTION DATE : 04/16/2008
COMM. ACTION : Do pass as amended.
COMM. VOTE SUMMARY : Ayes: 11 Noes: 00 PASS
TITLE : An act to add Section 758.6 to the Insurance Code,
relating to insurance.
Paint Cap News. SB 1371 in California
On April 9th 2008. SB1371 in California continued its march along. The bill would prohibit insurance carriers from capping payments for paint and materials charges. April 9th, the author, State Senator Correa amended it and resent it to the Committee on Banking,Finance and Insurance. On April 16th the following bill was up for hearing. Here’s the latest amended bill,
http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1351-1400/sb_1371_cfa_20080414_164040_sen_comm.html