We Support www.Caringbridge.org- A Great tool for All Insurance Adjusters on the Go!

 

As many of you know, my daughter, Crystal , was diagnosed with a giant cell sacrum tumor  (benign but very very rare) in September of 2007 which then returned again in January 2008.  She has been through a year and a half of multiple operations and radiation treatments with the most recent operations at the end of January 2009 so she still has quite a way to go on the road to recovery through physical therapy to rebuild her stamina.

We cannot say enough good things about the way her law firm  has supported her through this entire process and following updates on her CaringBridge blog. We were able through one post to keep our family, her friends, her work associates, and her clients spread nationwide informed with one simple post on their journal feature.

 Everyone we needed to tell as we have been on “this marathon” as she has called it is kept informed without us having to return phone calls and reply to individual emails because the caringbridge feature also allows you to update news on their journal, photos, and has a guest book blog where your work associates, family, and friends can provide well wishes. I just can’t say enough great things about this and the agony it saved me from having to tell Crystal’s story over and over on the phone during many times I just have been too down to talk about it as we had our ups and downs of the good and bad news we learned along the way to recovery.

When you register your Caringbridge site it is entirely free and supported through donation links found on their site. Here is a link to brochures you can download, buttons you can post on your site, website codes so you can upload a link for your employees and much more.

We learned of this site through the outstanding Cancer pain management clinic where we regularly have to go through this process which is a department through Vanderbilt hospital in Nashville, Tn.

 Many many thanks to Rachel  McDowell at this clinic who has been our source of strength at times we were just not up to it. Also many many special thanks to Ginger Holt, who with  her “attorney jokes to Crystal” about ” i drew the bad straw having to carve into an attorney” has provided us with  the most miraculous results. I cannot begin to say enough fantastic things about her. Even when an operation did not involve the oncology side of things, she would come by and visit us to provide encouragement, much needed jokes, and follow up with other specialists. Crystal , Chad and family are all now vigorous supporters of Vanderbilt hospital and the CaringBridge program they told us about. I’m not sure we would have gotten through this horrid past 1.5 years wihout Caringbridge’s site.

The Caring Bridge site also allows donation Tributes to your fallen comrades in their honor which is a great way to solve the issue of where associates can make donations on their behalf.

I decided to publish it on this blog because of the mobile nature of the claim industry with adjusters out on temporary catastrophe assignments. What a fantastic tool this would be as well as a time saver for adjusting firms, carriers with national catastrophe teams, and for adjusters who might get sick, fall off a roof ,or otherwise injured while away from home.

Registering for the site does not require that you disclose your name, instead you can use a nickname or other options. How about naming it in your adjusting firm name where you can post any news on serious health issues of your firm members for your entire group? Once you register for a caringbridge site, you just invite those who are looking for news to stay informed while working on the road.

Their brochures would be great to pass out at your yearly conferences for your adjusters or at annual claim conventions. Who better to support such a valuable site for associates injured or facing substantial medical issues than the insurance claims industry?

Through my daughter’s use of the site, we were able to communicate 24/7 when we could not get cell phone or blackberry email coverage in the hospital during long stays. Doesn’t this sound just like adjusters out on the road in the first wave of a major catastrophe?

Possibly if enough of us in the insurance claims industry whether you are staff, independent, or public adjusters or adjusting firms support this program they will create a category just for insurance adjusters to support us as well? Claims adjusters need to be supported by communities nationwide instead of all the negative news posted after a major disaster. Just like Red Cross disaster or other emergency responders, they do suffer extreme emotional issues when dealing with insurance consumers who have experienced a major crisis.

Thank you especially to Crystal’s employer Boult-Cummings-Connors-and-Berry (recently merged with another firm to become Arant, Boult, Cummings, Plc . Here is a link to my daughter’s bio  from one proud mom.

**Update 3/5/09- She gave me permission today to link to her CaringBridge site as she agrees it would be educational for adjusters- especially those in health care claim processing and approvals:

www. caringbridge.org/visit/cricklepickle

Through the Caringbridge updates, members of this remarkable firm have stood behind her supporting her with their prayers, prayer groups during operations, flowers sent to her regularly, cards to her home, and meals delivered to her home for months as she repeatedly underwent operations.

We had volunteers from her firm come to her home and assist with the children’s transportation needs, attorneys and paralegals come and clean house from top to bottom on their weekends, and many times (thank you Julie, Sandra, Dale, Sharon, her bosses , Ann Cargile and Bob Wood, and so many many more I don’t know the names of) just come sit at the hospital with me while we sat in fear waiting for news from the doctor when operations were finished.

 Many also filled in for me on nights or weekends when I was just exhausted beyond belief and just needed sleep as Chad (her husband) majored in the 3 boys needs while I concentrated on her. We could never have gotten through this road to recovery without “the Boult family” who continues to support her on the road to recovery.

 This firm will never know what a comfort it brings to our extended family nationwide to know that her position awaits her after such a long period of  recovery. It makes her very happy to just know her office  is waiting for her. It does wonders for her! This law firm should definitely be rewarded as the top law firm in the US for any awards available for their empathy and compassion for a  fellow attorney. They have gone above and beyond any possible expectations we could have imagined to support her.

Won’t you share a link on your site and share their brochures with your adjusters today? They have options for button tabs and other advertisement tabs and you can upload all kinds of other great tools for your mobile adjusters.

I know I cannot thank the members of   ClaimSmentor enough who have offered up prayers and well wishes on the guestbook link to my daughter’s caring bridge site. I had never met most of these folks in person such as Tom N, owner of Action Catastrophe Claims, but this firm has supported us by regularly posting guest entries on the Caringbridge guest blog.

There are so many other adjusters and claim managers that have also supported me behind the scenes through posts in our forums, private messages, calls, emails and prayers by reading her link at our e-mentoring site based on their reading of her journal entries.

I spent hours last night reading back through all of her journal entries and it really helped lift my spirits and to realize how much progress she has made and  to reconfirm what a courageous remarkable person she is. She has had such a remarkable knack I do not possess for remaining calm while dealing with medical emergencies or the ups and downs through the recovery process.

Her journals which  bring so much insight into the fears a person faces while being bomblasted with radiation  and undergoing operations. I told her this morning that it should be required reading for all liability adjusters, workers compensation adjusters, and health claims adjusters processing medical insurance claims so they might learn a little empathy about not only what a patient has undergone but the nightmares their families suffer through. It just might help insurance companies and adjusters better evaluate damages when evaluating the settlement value of a claim or processing health care benefit claims.

Whether you know her or not, her road to recovery through her CaringBridge story would bring tears to the most toughened adjuster’s eyes.

Hopefully one day I will have her permission to make the link to her journal public versus limited to her network circle (ok Crystal I know I shared it with my network circle through ClaimSmentor too and their support has been outstanding). While I do not have my daughter’s permission to share her link yet, here is one you can view that I just had to post for a very good friend who just learned she has stage 4 cancer but no computer skills to keep her family and friends updated so you can see a sample of how an active one works:

www.caringbridge.org/visit/myspecialsistersandra

Settlement negotiations between Plaintiff E. A. Renfroe & Company, Inc. and Defendants Cori Rigsby and Kerri Rigsby -Whistleblower Case- Links Updated Information

Thanks to Slabbed for updating this topic many claims industry professionals are interested in. You can find any news your looking for over there:

http://slabbed.wordpress.com/2009/03/02/whats-another-30-days-when-things-are-going-so-well-renfroe-v-rigsby/

You will find links over there to all prior posting they have done. I’m looking to the future working on training issues but will just post quick links as I come across them so you can view updates from other sources you may not know about.

***Update- David Rossmiller is back at  The Insurance Coverage blog (see right column for links-WordPress says I’ve linked too many times to this blog so I’ve edited these entries 3/21/09)  and has more posts than you can imagine on this case and hopefully now that he is posting again, he’ll post on some of the major developments during the six months he has not been posting. David- thank you for your humorous online e-mentoring. It is appreciated more than you know.

http://dimechimes.wordpress.com/2009/03/03/breaking-news-smile-david-rossmiller-is-back-first-full-post-on-zach-scruggs/

What shots does CDC recommend for disaster workers? Watch for more flood adjuster training info this week

 

I have limited time available to post new blogs this week but wanted to be sure to get this information up today about CDC (Centers for Disease Control) recommendations for shots for disaster workers. This is especially important for the many of you deploying to the flood damage in Iowa and other states. Fox news is extensively reporting about the toxic waters, the mold issues, the snakes and other harmful issues that could cause major safety concerns for insurance adjusters.

Here are the CDC recommendations. I would take heed and see your physician for the necessary shots BEFORE you depart:

http://www.bt.cdc.gov/disasters/disease/responderimmun.asp

Watch later this week for our posts on claims adjuster/ independent adjuster flood claim training information to include NFIP certification, special estimate software specific to flood claims and much more info you need to know on flood coverage , flood policies, and more issues that differ to work as a flood adjuster versus a property adjuster on wind, hail, fire, and other type of losses as the file requirements and safety concerns differ greatly.

5.4 Earthquake hits Illinois and surrounding states 4/18/08- Watch here for staffing requests to follow

Fox News is reporting a 5.4 earthquake in Illinois- the strongest they say to hit the area in 40 years. Later reports are now saying 5.2 centered in eastern Illinois. They say it was felt in IL, IN. MO, KY, TN and others. Below you will find some of the initial reports. They are showing photos of brick damage to buildings in Louisville, KY now. Here are some of the initial reports. We’ll update this blog entry with more news and emergency adjuster licensing information in the states involved as the day progresses. We will also update this blog with all new staffing requests received as a result of this EQ as the week progresses so check back regularly.

EQ Info:

Us Geological website- see top left hand corner for today’s EQ info:

http://earthquake.usgs.gov/

This link provides info with distance from other cities- I see it’s only 38 miles from Evansville, Ind:

http://earthquake.usgs.gov/eqcenter/eqinthenews/2008/us2008qza6/

Illinois EQ info website:http://earthquake.usgs.gov/regional/states/?region=Illinois

 

Fox news release:

http://www.foxnews.com/story/0,2933,351698,00.html

Here’s more news on Chicago and Indiana:http://www.myfoxchicago.com/myfox/pages/Home/Detail?contentId=6338887&version=1&locale=EN-US&layoutCode=TSTY&pageId=1.1.1

 

News out of Ft Wayne, Ind:

http://www.journalgazette.net/apps/pbcs.dll/article?AID=/20080418/LOCAL/364069032/1002/LOCAL

News out of Grand Rapids, MI:

http://www.mlive.com/news/index.ssf/2008/04/earthquake_centered_in_illinoi.html

This post will be edited with more information shortly.

Adjuster Safety- Another warning- March 08- Nationwide Adjuster Shot in Vehicle in TN while on Storm Duty

In September 2007, I’d blogged to alert adjusters about safety concerns with a reminder about a Tampa, FL adjuster murdered in the line of work. Here is a link to that prior blog:

http://dimechimes.wordpress.com/2007/09/14/field-adjuster-safety-concerns-be-careful-remembering-katie-froeschle-of-tampa-fl/

Today with the news all around us of storms in TX, AR, OK and other states as the storm is moving, it’s time to unfortunately remind everyone again but this time by a news story which happened in March 2008 in Jackson,TN when a Nationwide adjuster was shot in his vehicle and his laptop stolen. I have no additional details other than that as listed in this news article. A forum post on another site last month reported the adjuster died. I do not know if that is fact or rumor but the story alone is another warning to all adjusters to watch your surroundings and stay extremely concerned about your safety. I pray the adjuster involved did recover. Let us know if you know the actual outcome of this horrible story.

 Here is a link to the story that ran in the Jackson Sun on March 27, 2008:

http://www.jacksonsun.com/apps/pbcs.dll/article?AID=/20080327/NEWS01/803270311/1002/NEWS17

Our thoughts and prayers are with this adjuster and/or his family as he recovers.

Overhead and Profit Claim Settlement Issues Under Attack in 3 ongoing cases?

Today I received a google alert on yet a 3rd overhead and profit suit file. This case, Chivers v. State Farm. Case No: 2004-294-3 in TX ,dates back to 2004 but in an April 9, 2008 news article, apparently the case is still pending and three insurance carriers -State Farm, Foremost, and Farmers are seeking to have the Judge removed from this case.

Without more details, it’s hard to know what all of the current activity is about other than I was able to locate a few recent news stories on the case that provide a summary of the allegations against the carriers (without seeing the Complaint and other documents, I don’t know how many carriers or others are named in the suit). Unbelievably, according to one of the news articles, the judge was requiring Foremost produce copies of 600,000 files which they indicate would cost them approximately 45 MILLION dollars to produce.

Here is a link to the most current news article on the case about State Farm filing a motion to recuse the judge saying that Foremost and Farmers join in the motion:

http://www.setexasrecord.com/news/210665-insurance-companies-ask-arkansas-judge-to-remove-himself-from-litigation

This link above says in part:

“The original lawsuit, filed Sept. 8, 2004, alleges claims of civil conspiracy, unjust enrichment, fraud, and constructive fraud by accusing the insurance companies of not disclosing or paying to the insured’s the general contractors’ overhead and profit, whenever the repair of an insured’s loss required the services of at least three trades. “

The article mentions that Farmers and  Foremost have joined  State Farm in the motion.

This article below says the case was heading to the Arksansas Supreme Court over the judges instruction they had to copy all 600,000 files.

http://www.setexasrecord.com/news/201741-45-m-discovery-dispute-heading-to-the-arkansas-supreme-court

If you follow our blog, you will recall two other recent blogs we’ve done on some other recent activity regarding overhead and profit lawsuits. You can click here  for the Sher case in LA where the judge allowed 25% overhead and profit and a 20% contingency fee for unspecified and unforeseen/unknown damage and here to find the blog on the OK class action case on overhead and profit.

In summary- it looks like we have three (and possibly more as there could be others I just haven’t seen anything about in the news recently) cases with three different issues on the overhead and profit:

1) Chivers v. State Farm. Case No: 2004-294-3- issue overhead and profit when three trades involved- Arkansas case 

2) Sher case v. Layfayette Insurance- LA case- issue was flood definition and levee breaks but on page 25 of judge’s decision he allowed 25% overhead and profit PLUS a 20% contractors contingency fee as the plaintiff’s expert witness testimony was unopposed. Make sure to read the link above for a discussion on that as the expert used info from a Lousiana State Office Volume on state facilities. By the way- since I wrote the blog on Sher yesterday, I’ve run across and insurance article stating that the American Insurance Association president has praised the new decision on the case based on the flood provisions being upheld. AIA represents 350 insurance carriers. I wonder if he even realized the info on the overhead and profit on page 25 of the judges decision doesn’t follow insurance claim settlement normal procedures?

3)  Burgess et al. v. Farmers Insurance Company, Inc. et al.-Class action case in OK on standard 20% overhead and profit and here is a brief summary from some of the links in the blog we did on that:

This is the website for the Burgess et al. v. Farmers Insurance Company, Inc. et al. class action lawsuit.  Homeowners have sued Farmers saying that they improperly withheld payments for general contractor’s overhead and profit (“O&P”) from amounts paid on claims under homeowner’s insurance policies to citizens of Oklahoma.   The Court has not decided if the Defendants did anything wrong. You need to decide whether to stay in the Class or exclude yourself, and you need to decide this by May 16, 2008.

It will be interesting to watch these 3 cases and see if we can find out how they are resolved. Hopefully, someone with access to PACER will provide pdf’s on these cases so we can read more detail and understand where exactly these cases stand at this point and how they end up getting resolved.

I’d recommend sharing this information with your claim managers in case they are not aware this overhead and profit issues are under attack. They may want to seek clarification from carriers on their current expectations on your estimates before you begin submitting closed files only to find out your estimates require revision to comply with any possibly new carrier expections on overhead and profit entries on your estimates.

National Association of Catastrophe Adjusters Membership Drive to 3/15/08

The National Association of Catastrophe adjusters has changed their membership drive deadline to a new deadline of March 15, 2008 for new and experienced adjusters as well as adjusting firms wishing to join (prior deadline was this past November).

I’ve written about this organization before after becoming quite impressed with them while attending the 2006 yearly convention. I was quite pleased to find such a professional organization holding a meeting that was equal in value to annual carrier claim conventions with their professionalism, opportunities to obtain CE credits for adjusters and I note this coming year (Jan 09) they will offer the National Flood NFIP certification classes as well as the California Earthquake certification.

Here is a link to their membership information! Won’t you consider joining this very worthwhile group? By getting your application in prior to the March 15, 2008 deadline, you will have the opportunity once approved for membership to be in their 2008 directory.

Again we appreciate the 2007 President, Woody Britton, for letting us know about the extension of this year’s registration deadline. We also wish a very successful year to incoming 2008 President, Angelo Cassanese.

6.0 Earthquake rocks NV, UT, parts of CA 2/21/08- Adjuster Information

Fox news has a breaking news story that a 6.0  EQ just hit Elko, NV. It is listed in this Fox news story as 430 miles from Las Vegas and 230 miles from Salt Lake City, UT. It also says folks as far away as southern CA felt the quake.http://www.foxnews.com/story/0,2933,331649,00.htmlThis report in the Salt Lake City Tribune is saying the worst damage is in Wells, NV:http://www.sltrib.com/ci_8323975 Here is more news on Reuters confirming Wells, NV worst damage: http://www.reuters.com/article/latestCrisis/idUSN21267529 Looking at the statistics, Elko has a population of, 16,708 and 3,880 owner occupied dwellings and 2,320 rental tenant occupied dwellings for a total of 6.948 according to this demographic report of the area. The demographics for Wells, NV shows a population of about 1,300: http://www.muninetguide.com/states/nevada/municipality/Wells.php http://www.ci.elko.nv.us/econdev/area_description.htm#demo Here are some demographics in Salt Lake City with over 1.2 million in the area with 181,000 in the immediate area. http://www.saltlakecityutah.org/salt_lake_demographics.htm Here are the links to : NV Insurance Department on emergency Adjuster licenses: Main licensing link: http://www.doi.state.nv.us/Form-FormsIndex.htm#Producer%20Licensing%20Section If you look at the 1/5/08 Press release at the Nv Dept of Ins website, you’ll see they have to declare a disaster to allow emergency adjusters to handle claims. They do not have one for the EQ today up as of this writing: http://doi.state.nv.us/Press-Press2008Index.htm Here is a link to some other state licensing info (scroll down to Insurance Adjuster) but it may be outdated since it says 2001 and some of the info on the Ins Dept website on the 1st link has pdf’s dated 06 and 07. If anyone finds the direct link to emergency adjuster licenses, please provide the direct link. This 2nd link shows that the fine is 1,000 per violation for handling claims unlicensed but I’m not finding the direct info to emergency licenses. Note, while they addressed resident and non resident adjuster licenses, there was no clear link to emergency adjuster license applications that I could find. http://www.leg.state.nv.us/Statutes/71st/HtoL.html These items came from the doi.state link above 1) This PDF provides info on 3 types of adjuster licenses and the fees involved: KENNY C. GUINN STATE OF NEVADA ALICE A MOLASKY-ARMAN Governor Commissioner of Insurance SYDNEY H. WICKLIFFE, C.P.A. Director DEPARTMENT OF BUSINESS & INDUSTRY DIVISION OF INSURANCE 788 Fairview Drive, Suite 300 Carson City, Nevada 89701-5491 (775) 687-4270 Fax (775) 687-3937 http://doi.state.nv.us EFFECTIVE JANUARY 1, 2006 Effective January 1, 2006 the fee for the Recovery Account will be reduced from $15 to $10. This reduction will be reflected in the total fees as follows : FEE SCHEDULE EFFECTIVE JANUARY 1, 2006 ONLY FOR THOSE LICENSE TYPES THAT REQUIRE THE RECOVERY ACCOUNT FEE. There will be no refunds for overpayment of fees. License Type Total Fees Affiliation Fee (if applicable) Producer of Insurance $135.00 ($125 + $10) $60.00 ($50 + $10) (includes-limited credit, travel/baggage, fixed annuities and rental car agency) Producer Agency $135.00 ($125 + $10)   Title Agent $135.00 ($125 + $10) $60.00 ($50 + $10) Escrow Officer $135.00 ($125 + $10) $60.00 ($50 + $10) Fraternal Agent $135.00 ($125 + $10) $60.00 ($50 + $10) Independent Adjuster $135.00 ($125 + $10) $60.00 ($50 + $10) Public Adjuster $135.00 ($125 + $10) $60.00 ($50 + $10) Associate Adjuster $135.00 ($125 + $10) $60.00 ($50 + $10) Insurance Consultant $135.00 ($125 + $10) $60.00 ($50 + $10) Motor Club Agent $88.00 ($78 + $10) $60.00 ($50 + $10) Surplus Lines Broker $135.00 ($125 + $10) $60.00 ($50 + $10) THE FEE FOR ADDING LINES OF AUTHORITY TO THESE LICENSE TYPES WILL BE $60.00 ($50 + $10 Here is also a PDF with Fingerprinting info: JIM GIBBONS STATE OF NEVADA ALICE A. MOLASKY-ARMAN Governor Commissioner of Insurance MENDY K. ELLIOTT Director DEPARTMENT OF BUSINESS & INDUSTRY DIVISION OF INSURANCE 788 Fairview Drive, Suite 300 Carson City, Nevada 89701-5491 (775) 687-4270 Fax (775) 687-3937 Website: doi.state.nv.us E-mail: insinfo@doi.state.nv.us NOTICE To: All Insurers, Insurance Producers, and Other Interested Parties Date: September 7, 2007 RE: Fingerprint card processing fee increase Effective October 1, 2007, the fee for fingerprint cards will increase from $45.00 to $51.25 because of the increased fees charged by the Federal Bureau of Investigations (FBI) for the processing of fingerprint cards from Nevada. The Department of Business and Industry, Division of Insurance (Division) requires an individual to submit two complete sets of fingerprints which are ultimately forwarded to the FBI to conduct a background search. Any cards processed by the FBI after September 28, 2007 must include the appropriate fee. Accordingly, any application or submission received by the Division after September 28, 2007 must include the new fee of $51.25. Applications or submissions that do not include the appropriate fee will be deemed incomplete and will not be processed until the correct fee is paid. The Division cannot guarantee cards will be processed at the lower fee. Persons with questions regarding this information may contact the licensing section of Division at (775) 687-4270 in Carson City or (702) 486-4009 in Las Vegas. DOC 324 C Fingerprint Fee Increase 09.07.07 jm Note this info is also found on a PDF on the NV Ins Dept website with contact numbers of some of the major carriers in NV for adjusting firms marketing efforts: ADDITIONALLY, HERE ARE A FEW TELEPHONE NUMBERS FOR CLAIMS SERVICES FOR SOME OF THE INSURERS. WE WILL UPDATE THIS LIST AS INFORMATION BECOMES AVAILABLE. Updated 1/7/2008 AAA NEVADA (homeowners) – (800) 922-8228 and CSAA (auto) ALLSTATE INSURANCE – (800) 547-8676 AMERICAN FAMILY – (800) 374-1111 CIVIL SERVICE EMPLOYEES – (800) 282-6848 and CSE SAFEGUARD COAST NATIONAL – (800) 274-7865 (1-800-Bristol) COUNTRYWIDE INSURANCE – (800) 846-0100 FARMERS INSURANCE – (800) 435-7764 (1-800-HelpPoint) GEICO – (800) 941-3000 or (866) 435-1968 HARTFORD CLAIMS SERVICES – (800) 243-5860 IDS PROPERTY CASUALTY – (800) 872-5246 LIBERTY MUTUAL – (800) 225-2467 METLIFE AUTO & HOME – (800) 854-6011 NEVADA CAPITAL – (800) 986-9974 or (775) 321-1770 or (800) 381-2445 NEVADA GENERAL – (800) 840-4400 PERMANENT GENERAL ASSURANCE – (800) 280-1466 option 3 PROGRESSIVE – (800)-925-2886 SAFECO – (800) 332-3226 SHELTER INSURANCE – (800) 743-5837 (1-800-Shelter) STATE FARM – (800) 732-5246 (1-800-SFClaims) NATIONAL FLOOD INSURANCE PROGRAM – (888) 225-5356 (1-800-CallFlood) Here is all the info I could find on the Adjuster licenses and application found on the Producer Licensing Link on their site: STATE OF NEVADA DEPARTMENT OF BUSINESS AND INDUSTRY DIVISION OF INSURANCE Procedures effective January 1, 2006 INDEPENDENT OR PUBLIC ADJUSTING FIRM & INDIVIDUAL FORMS & FEES DOCUMENT #307 MAILING ADDRESS FOR PHYSICAL MAILING ADDRESS: APPLICATIONS WITH FEES:   Nevada Division of Insurance Nevada Division of Insurance P.O. Box 98572 788 Fairview Drive # 300 Las Vegas, Nevada 89193-8572 Carson City, Nevada 89701-5491 Any corporation that will be doing insurance business in the state of Nevada must be licensed by the Division of Insurance and qualified with the Nevada Secretary of State’s Office. If you have not already done so, you will need to contact the Secretary of State at (775) 684-5708. Your name and purpose must be approved by this office prior to filing your Articles of Incorporation (NRS 78) or submitting the Foreign Corporation Qualification to Do Business in Nevada (NRS 80). Any corporation that fails to maintain their qualification forfeits their right to do business in this state and must immediately surrender any licenses issued to them by this Division. Domestic corporations must include the insurance clause in the purpose of their Articles of “TO ENGAGE AS AN ADJUSTER IN ALL CLASSES OF INSURANCE NOW AND HEREAFTER PERMITTED BY STATUTE.” THE LANGUAGE “ALL LAWFUL ACTIVITY” IS NOT ACCEPTABLE. You can now access our forms and laws on our Internet website located at http://doi.state.nv.us. Our laws are found under Title 57 of the Nevada Revised Statutes. INDEPENDENT OR PUBLIC ADJUSTING FIRM FORMS & FEES REQUIRED FORMS: 1. BUSINESS ENTITY LICENSE APPLICATION:All portions of the application must be completed to be acceptable. All claims and records pertaining to Nevada risk must be administered and maintained in Nevada. The fee for the firm is $135.00. http://www.doi.state.nv.us/Form-PL-DOC325.pdf. If there are additional locations the fee for each additional location is $10.00. http://www.doi.state.nv.us/Form-PL-DOC322.pdf 2. AN INDIVIDUAL LICENSE APPLICATION MUST BE COMPLETED FOR EACH PERSON THAT WILL APPLY AS AN INDEPENDENT, PUBLIC OR ASSOCIATE ADJUSTER UNDER THE FIRM. List your agency affiliation on question 32. The fee is $195.00. Residents of Nevada must comply with Nevada’s fingerprint requirements. 3. Independent or Public Adjuster qualifications: The adjuster must be a resident of Nevada for at least 90 days prior to the submission of the license application. The adjuster must be 21 years of age and have 2 years recent (within the past five years) experience handling and adjusting claims. The adjuster must take and pass Part I and Part II of the “Producer” property and casualty PROMISSOR exams. You can access information on the exam by contacting PROMISSOR at 1-800-274-2609. The fee for an independent or public adjuster under a firm is $195.00. 4. Associate Adjuster qualifications: An associate adjuster must be 21 years of age. They are not required to take and pass the exam and they may be a resident or nonresident. They must be employed by a Nevada licensed independent or public adjuster. Residents must comply with Nevada’s fingerprint requirements. The fee is $195.00. 5. DOCUMENT 324 Resident’s requirements for Criminal History Search. The State of Nevada requires a criminal history report for applicants that are residents of Nevada. Complete 2 fingerprint cards with the detailed information required in DOCUMENT 324. You must attach the cards to your licensing application with a $51.25 cashiers check or money order made payable to the Department of Public Safety. The money order or cashiers check should be in a sealed envelope marked “DPS”. We will forward to the Nevada Department of Public Safety to obtain the criminal history report. NRS 686A.225 Certain insurers to retain adjuster who resides in this state. 1. Except as otherwise provided in NRS 684A.060, any insurer who: (a) Transacts property, casualty or surety insurance in this state; and (b) Retains an adjuster to investigate and settle any claim arising under an insurance contract, 􀂬 shall retain an adjuster who resides in this state. 2. As used in this section, “adjuster” has the meaning ascribed to it in NRS 684A.020. FEES: PLEASE PROVIDE ONE CHECK PAYABLE TO “NEVADA INSURANCE DIVISION.”ALL FEES ARE DEEMED EARNED UPON RECEIPT PURSUANT TO NRS 684A.110. NO REFUNDS WILL BE MADE. DOC 307 Independent or Public Adjuster (rev 09.09.07 jm) STATE OF NEVADA Department of Business & Industry—DIVISION OF INSURANCE Individual Resident and Non-Resident Insurance License Application Mailing Address: P O BOX 98572, Las Vegas, NV 89193-8572 Office Delivery: 788 Fairview Dr #300, Carson City, NV 89701 (Please Print or Type) Soc. Security Number If applicable, NASD Individual Central Registration Depository (CRD) Number Are you affiliated with a financial institution/bank? Last Name JR./SR. etc First Name Middle Name Date of Birth Residence/Home Address (Physical Street) P.O. Box City 0   State 1   Home Phone Number ( ) - Gender (Circle One) Male Female   Are you a Citizen of the United States? (Check One) Yes No (If No, of which country are you a citizen?) Personal Business Name (dba) (Provide Nevada County Clerk Filing if you have a physical location in Nevada)   Business Address (Physical Street) P.O. Box City Zip or Foreign Country Business Phone Number ( ) - Business Fax Number Business E-Mail Address Business Web Site Address Applicant’s Mailing Address City Zip or Foreign Country If Applicable, beginning date of residency in the State of Nevada: Nonresidents: “Home State” where you hold a Resident License Fein # ____________________________ Name of Agency Fein # ____________________________ Name of Agency Fein # ____________________________ Name of Agency Employment History Account for all time for the past five years. Give all employment experience starting with your previous employer working back five years. Include full and part-time work, self-employment, military service, unemployment and full-time education. To Position Held Name City State Name City State Name City State Name City State Name ********* New Procedures Effective 10/01/07 • Submit to the Division of Insurance with your licensing application: 1. 2 completed cardsfingerprint cards completed as instructed below 2. In a separate and sealed envelope labeled DPS, a cashier’s check or money order for $51.25 made payable to Nevada Department of Public Safety Do not combine criminal history report fees with licensing fees. The Division of Insurance will forward both fingerprint cards and the $51.25 cashier’s check or money order to the Nevada Department of Public Safety. The results will be returned directly to the Division of Insurance. • Fingerprints may be done at the Promissor examination centers, local law enforcement office or from an authorized fingerprint vendor. All personal information boxes must be completed and the following information must be written in the appropriate boxes on both cards. Note: Any criminal history report requested directly from the Nevada Highway Patrol will be accepted if previous procedures were followed until 4/1/04. If an applicant has had no criminal history, as indicated and certified on their application for a license, the commissioner may issue a license before the actual report is received. The commissioner may suspend, revoke or refuse to continue the license if the applicant’s criminal history report shows a conviction or other criminal activity that was not disclosed on their licensing application. F:/S/M/DOC 324 Fingerprints (rev 09.09.07 jm) UT Insurance Department on emergency Adjuster licenses:Very interesting to see they waive the licensing exam for those with portions of the AIC program completed. This link provides their licensing fees and fingerprinting fees:   Adjuster License:  The exam is waived if the following qualifying conditions have been met: Adjuster license applicants who have earned the Associate in Claims (AIC) designation, or have successfully passed AIC Exams #33 and #34, or #33 and #35, or #33 and #36. The AIC examinations are administered by the Insurance Institute of America. Adjuster license applicants who are members of the Utah State Bar. http://www.insurance.utah.gov/LicensingProc.html#licensing I was able to find the emergency adjuster license info for Utah here: http://le.utah.gov/~code/TITLE31A/htm/31A1A016.htm and other licensing info here which does say it was updated in 2008: http://le.utah.gov/~code/TITLE31A/31A1A.htm   ____________________ “LUCK is where PREPARATION meets OPPORTUNITY” Author unknown “I’m not afraid of storms for I’m learning how to sail my ship.” Louisa May Alcott, Author (1832-1888)

Again, I apologize that the font size tool still can’t be found to consistently size font when combining information from several sources but I wanted to get this info out to you asap. I do recommend calling the UT and NV Dept of Insurance to be sure the information we could locate on the web is their latest guide regarding licensing BEFORE you go all the way out there without being properly licensed.

Storms in TN, KY, AK, AL, IN, MO, MS of 2/5/08- Adjuster Information on Emergency Licensing and Damage

We are already receiving reports of adjusters deploying to the February 5, 2008 storms. We are providing some information to assist you in assessing damage and claim potential as well as for emergency adjuster licensing issues. You will also find some other interesting developments from 2006 and 2007 posted below that may come up while out on assignment:

Adjuster Licensing/ Insurance Carrier- Adjusting Firm emergency licensing forms

AL

AL emergency adjuster license form:

http://www.aldoi.gov/PDF/Licensing/EmergencyAdjustersApp.pdf

Here is current 2/08 info about AL- interesting info about the passes and that they will overnight them. This is an online form and looks like it must be completed by the company to register an emergency adjuster

http://www.aldoi.gov/Licensing/EmergAdjustForm.aspx

AK:

http://www.insurance.arkansas.gov/License/forms.htm

http://www.insurance.arkansas.gov/License/LicenseFormfiles/adjuster_application.pdf

KY:

KY Adjusters license application info- for resident and non resident- see info on the pdf about emergency adjusters/90 days info: (this is last update from June 2007)

http://doi.ppr.ky.gov/kentucky/Documents/Agent/AdjusterApprenticeAdj06072007.pdf

Here is more info on Ky emergency adjusters on this form for companies sending in emergency adjusters:

http://doi.ppr.ky.gov/kentucky/Documents/Agent/catloss83071104REV05272005.pdf

MS

Links to applying for MS license:

On-line License Applications

MS first-time licenses or reinstatements available through Sircon as of Jan. 1, 2007

Go to http://www.sircon.com/Mississippi  “Apply for a License”

Agents/Producers

http://www.doi.state.ms.us/licensing/update.html

Test scores for residents

The Mississippi Insurance Department now has the capability to receive test scores electronically for resident agents/producers. The Testing Service submits the test scores to Sircon on a daily basis. As a result, resident applicants for first-time Life & Health, Property & Casualty and Adjuster licenses are no longer required to submit test scores with their applications. Our processors will verify the test results upon receiving the application, license fee and pre-licensing certificate.

Note that this link had some emergency PA rules too but MS has a new Ins commissioner so no telling how this will all pan out these storms:

http://www.doi.state.ms.us/bulletins/20067bull.PDF

Info on MS Emergency adjusters licenses is found in this former bulletin on emergency adjusters in MS during Katrina:

http://www.doi.state.ms.us/bulletins/20067bull.PDF

which says in part that Ms Code 83-17-409 authorizes emergency adjuster authorization by the state

I’m curious if this bulletin on PA’s in MS which expired in May 2007 will be renewed:

http://www.doi.state.ms.us/bulletins/20058bull.PDF

TN:

New Public Adjuster Regs in 07:

TN new Public Adjuster licensing provisions that were in effect in 2007:

http://tennessee.gov/commerce/insurance/documents/PublicAdjusterLicPkt052107.pdf

TN Insurance Division – can’t find any info on state license or emergency licenses for adjusters- it’s my understanding resident adjusters are not licensed here but you will want to verify that before coming yourself since I am not familiar with emergency licensing standards here and nothing posted on their site:

http://www.state.tn.us/commerce/insurance/index.html

Miscellaneous Info adjusters might need/be interested in:

MS- See this bulletin about Auto total loss claims bulletin found on DOI site:

Bulletin from 6-07 about sales tax and license fees if a carrier totals an auto on a loss which says a carrier has not made an insured whole if they do not include tthese fees for title, sales tax and license fees:

http://www.doi.state.ms.us/bulletins/20074bull.PDF

 

TN- see note above on new PA licenses required in case you must deal with a PA there

Also – interesting problem contractor listing found on the TN state consumer division site updated 1/31/08:

TN – Problem Contractor listing for Contractors who have failed to respond to complaints in case any of you run into them: (list of 1/31/08 found on Consumer Affairs site on Tn site

http://www.state.tn.us/consumer/documents/ProblemContractorsList.pdf

TN Building Code info – an update from TN Dept of Ins of 1/25/08 some of you may need to be aware of if working TN storm claims:

http://www.state.tn.us/commerce/documents/pr2008EmergencyRules_01252008.pdf

Storm Reports:

NOAA Storm reports over 60 tornado reports yesterday and over 100 hail damage reports:

Here is the NOAA Storm reports link for yesterday to check back for updates for those of you new in claims that don’t have this link:

http://www.spc.noaa.gov/climo/reports/yesterday.html

Last 3 hours reports more tornados in AL and TN:

http://www.spc.noaa.gov/climo/reports/last3hours.html

Here is the one cumulative called TODAY’s reports (note the ones above in the last 3 hours aren’t showing up yet on the site:

http://www.spc.noaa.gov/climo/reports/today.html

Photo Galleries of Storm Damage you might want to view:

Photo gallery of damage in Jackson,TN:

http://www.jacksonsun.com/apps/pbcs.dll/gallery?Avis=DQ&Dato=20080205&Kategori=PHOTOGALLERIES01&Lopenr=802060801&Ref=PH

Gallery of photos posted at the Tennessean (Nashville) on damage throughout the state:

http://tennessean.com/apps/pbcs.dll/gallery?Avis=DN&Dato=20080206&Kategori=NEWS&Lopenr=802060802&Ref=PH

News reports of the dead and destruction: 

Here is  a sampling of damage reports around the states from last night and this morning reporting 44 deaths and numerous injuries as well as much damage. The initial news reports here in TN were indicating 4 states involved but the NOAA reports show many others suffered hail damage as well like IN, MO, TX:

Some early reports indicating 31 dead:

http://gulfcoast.cox.net/cci/newsnational/national?_mode=view&_state=maximized&view=article&id=D8UKQ7681&_action=validatearticle

5 dead in Sumner Co, TN:

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080206/NEWS/80206008

Reports of 3 dead in Shelby/Memphis TN:

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080206/NEWS/80206012

Madison/Jackson,TN damage:

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080206/NEWS/80206014

4 killed/20 injured- Madison/Jackson:

http://www.jacksonsun.com/apps/pbcs.dll/article?AID=/20080206/NEWS01/802060331/1002

Arkansas- 13 dead/damage in 9 counties:
http://www2.arkansasonline.com/news/2008/feb/06/tornadoes-rip-state-kill-8/?news/arkansas

An earlier report out of Arkansas:

http://www2.arkansasonline.com/news/2008/feb/05/severe-thunderstorms-were-forecast-arkansas-tuesda/?news/arkansas

4 deaths reported in AL this am:

http://blog.al.com/spotnews/2008/02/at_least_two_dead_in_storms_in.html

I’m sure by the time this blog is reported these numbers have risen. Our prayers go out to all damaged communities and families who have suffered losses. We also pray for the safety of all adjusters reporting to these storms. It is most difficult to work losses with these numbers of fatalities involved.

For those of you who are members at ClaimSmentor, we’ll post additional claim stats on the damage in our Storms Forum.

Don’t forget there is also a roster by state of residence of participating adjusters which now includes hundreds of experienced adjusters with their resumes uploaded which participating adjuster firms can use at no charge (it also indicates if the adjuster has uploaded their resume as well as their experience level directly on the state alpha list).

We are also available 24/7 to assist with any carrier or adjusting firm staffing needs. There is a charge for our services. Note our new office number now that we have relocated to TN is 615-435-4177 or Cell 850-496-7831 if you need additional staffing assistance.

OK declares state of emergency allowing emergency adjuster licenses- link for application

Many of you may be activated to service claims in OK and other midwest states due to the winter storms.

I’ll update this blog in the next day or so with the damage statistics. In the meantime, here is the information on OK declaring an emergency thus allowing emergency adjusters along with the link to the application and emergency adjuster license information:

Here is the link for the catastrophe adjuster emergency license application:

http://www.oid.state.ok.us/www2.oid.state.ok.us/PDF/Forms/Agents/AGT-CAT%20form%20EIA.pdf

Here is information on the $15.00 application fee and mailing instructions for the application:

http://www.oid.state.ok.us/

Here is a link to the top 10 insurance companies writing in the state of OK:

http://www.oid.state.ok.us/www2.oid.state.ok.us/PDF/Insurance%20Companies%20Contact%20Numbers.pdf

Here is the news story making the announcement on the emergency declaration and use of emergency adjusters:

http://newsok.com/article/3180186/1197520514

The Southwestern Insurance Institute predicts storm damage claims in OK to reach 35 Million according to this news article posted by the Insurance Journal:

http://www.insurancejournal.com/news/southcentral/2007/12/13/85627.htm

We wish all of you deployed for these storms the safest of travels!

Blog 3 on CA Wildfires- Insurance Company Damage Statistics through 10/25/07

We’ve heard from many adjusters participating on ClaimSmentor today that they have either been activated for storm duty or they have been notified of possible standby status.

Miscellaneous information first on prior blogs you’ll want to read if you are going:

We posted our first initial blog on the CA fires with links to many important issues about handling claims in CA : Click here

We posted the news releases on emergency adjuster approval by the CA Insurance Commissioner earlier today: Click here

Here is the prior blog on temporary housing options for adjusters and insureds: Click here

Here is the prior blog on Billingual Translation services: Click here

Here is the blog on standby calls and catastrophe codes for new adjusters: Click here

Here is an excellent guest blog by Steve Ebner on crisis management when dealing with insureds on a storm as serious as the wildfires are:  Click here   (Steve by the way is now on his way to CA to work catastrophe losses)

*********************

Current Carrier Statistics on the storms in the news: Total still stands at 500 million expected

State Farm 1,350 (251 are totals), Zurich 800, Lloyds -unknown #:  Click here

**note the article says State Farm is #1 carrier, Zurich #2- State Farm independent adjusters are usually Eberl, Worley, EA Renfroe, and Pilot and I think IPS Staffing in Chicago handles alot of the Zurich inside commerical work

I-5 Shutdown both directions  Structures damaged in all fires 1,013 if you add up all figures in this article and about 22,000 others threatened (adding up all numbers in my head on threatened structures : Click here for full article

Note how the numbers in the two articles above differ between carrier reports of numbers and other articles.  Just with the two carriers above they are quoted at 2,150 between the two. First of all, many carrier models staff for 50 catastrophe losses per adjuster but they normally would use a different model for total losses versus claims with a lower severity code. Most carriers I have worked with will tell you that during a typical storm, you can count the losses reported day one and muliply that by 10 to determine how many claims to expect thus how many adjusters to deploy to a cat zone. However, on a storm such as this with most parties still in evacuation mode, it is highly doubtful that most insureds have reported their losses waiting to determine the extent of their damage similar to hurricane evacuees so my guess is the presently reported numbers bear no significance on the number of losses actually to be received to include smoke damage, partial fires,civil authority evacuation, ALE,etc

Interesting blog on Suspicious Activities near CA Wildfires- Is this terrorist related (that hadn’t even dawned on me!): Click here (read at own risk- I had no time to view what this site is about and what prior blogs are- just got the hit on a news alert today)

USAA- Adjusters in San Diego and more on the way: Click here   (Doesn’t Crawford service USAA claims? Who else?)

The Democratic Daily- lots of great links to local info on fires in Malibu: Click here

Farmers Insurance, 1100 claims: Click here

CNN Money Article- “The Next Battle for wildfire victims- Insurance”: Click here (Aw- lawsuit talk already?Hmmmm)

Bloomberg article-update 6- “Largest evacuation in CA history- 5 dead: Click here

Day 4- update on status of containment and damage on all 16 fires from The Daily Green: Click here

I’ll update this as more alerts come in this evening with stats. Note, I’m in the process of preparing a blog for tomorrow on the history of lawsuits and wildfires in CA to get a glimpse of what adjusters might expect in the way of lawsuits based on past history and information on 4 of the biggest plaintiffs attorneys who have been involved in prior wildfire lawsuits against carriers in CA.

Please be safe in your travels to and throughout California as you go to your assignments.

***********

Update 10pm CST 10/24

Update Day 4- Blog 3 on CA wildfires:

Which CA Wildfires  are they calling Arson related?

Santiago Fires called arson: click here

I’ll update this section as more is found on the cause of each fire

**update 1am 10/25: LA Times article on Arson fires in Hesperia-San Bernendino-Rosa Blaze-Temecula-Orange County fire, and the worst was the suspect killed for setting a fire today. Click here for full details on the fires they believe to be arson related (for subrogation purposes?)

********

Update 11pm CST 10/24:

CNA opens operation center (must be a claim central operation) in Nashville,TN for Ca Wildfire claims: Click here

Farmers and Zurich update- 400 adjusters now in CA and here are the locations of their catastrophe centers: Click here  2,000 Farmers/ 500 Foremost thus far reported

Hartford- Adjusters on scene and info on their claim central division, contact numbers for Hartford- Interesting Hartford Claims Debit card information: Click here

Zurich- no finanicial impact expected: Click here

Liberty Mutual and Fireman’s Fund discuss their losses : Click here

Updates 10/25/07 8 am:

State Farm General, Farmers and AIG quotes (all less than 2,500 thus far?): Click here

California Insurance Commissioner Clears the way for non CDI Emergency Adjusters to handle wildfire losses

Please see the following press alert notice received. I will update the blog by late this evening with information located on current insurance company damage assessments by 10pm CST.

From: California Department of Insurance <communications@insurance.ca.gov>

Date: Wednesday, October 24, 2007 5:08 PM

To: dimechimes

Subject: Commissioner Poizner Issues Declaration of Insurance Emergency for Southern California Fire Storms

Size: 10 KB

Attachments:

You are subscribed to Press Releases for the California Department of Insurance. You are receiving this email because new information has recently been released. You can access the department’s Communications Office Web page by clicking here. INSURANCE COMMISSIONER STEVE POIZNER ISSUES DECLARATION OF INSURANCE EMERGENCY FOR SOUTHERN CALIFORNIA FIRE STORMS Insurance Adjusters Expedited to So. California to Quicken Recovery by Local Residents and Businesses SACRAMENTO – Today Insurance Commissioner Steve Poizner, in anticipation of an onslaught of severe insurance claims, issued an emergency declaration to help accelerate claims from the aftermath of the Southern California fire storms. “I am issuing a declaration which will expedite additional insurance adjusters to California to assist survivors of the fire storms with the prompt processing of insurance claims resulting from this catastrophic event,” said Commissioner Poizner. “During this state of emergency, I want to ensure Californians that I will do all that I can to help them through this crisis and rebuild as quickly as possible. For many, the first step on the road to recovery is to cut through the red tape, have their loss documented and processed for a claim. We want to remove any unnecessary delays to the system and make sure we have enough adjusters on the job.” The California Department of Insurance (CDI) proclamation will allow CDI-licensed insurance adjusters and insurers to use the services of non-CDI licensed adjusters, such as those from out-of-state, to assist with the processing of the multitude of anticipated insurance claims arising from the fire storms. The work performed by the non-CDI licensed adjusters must be under the active direction, control, charge, or management of a CDI-licensed insurer or adjuster. Commissioner Poizner issued the declaration in according with the requirements of Section 14022.5 of the California Insurance Code, which provides that such use is reasonably necessary in order to adequately respond to the emergency situation. The last time Commissioner Poizner issued this type of declaration was January 22, 2007, in the face of the extreme, California crop freezes.  Prior to that, however, the last insurance emergency declaration was issued in November 2003 in response to wildfires in Southern California. Text of declaration can be found at www.insurance.ca.gov under LATEST NEWS. Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833. This service is provided free of charge by: California Department of Insurance. *********** Special Thanks to Helen Palmer of the Cat-Women@yahoogroups.com for sharing the following two other press releases on this: Associated Press Release: Calif insurance commissioner declares insurance emergency The Associated Press SAN FRANCISCO California Insurance Commissioner Steve Poizner declared an “insurance emergency” on Wednesday because of the Southern California wildfires. The declaration temporarily removes the ban on out-of-state claims adjusters lacking California licenses. Poizner said that lifting the ban will help insurance companies better deal with the expected crunch of fire claims. He estimated that more than $1 billion in property damage has already occurred. Poizner last lifted the ban in January during a devastating crop freeze in the Central Valley. During a press conference in San Francisco, Poizner also said that he is sending dozens of fraud investigators into the burned region to crack down on scam artists posing as claims adjusters and contractors. Poziner said he has already received reports of fraud, but no arrests have been made. Poizner said fire victims can call 1-800-927-HELP or log onto http://www.insurance.ca.gov for Department of Insurance guidance. Published: Wednesday, October 24, 2007 12:04 PDT ***************** LA Times News Article: State opens door to insurance adjusters template_bas template_bas Declaration of ‘insurance emergency’ allows companies to bring in personnel from other parts of the country, even if they aren’t licensed in California . By Marc Lifsher, Los Angeles Times Staff Writer 11:30 AM PDT, October 24, 2007 SACRAMENTO — California Insurance Commissioner Steve Poizner today declared an “insurance emergency,” clearing the way for a more speedy processing of damage claims from the Southern California wildfires. Poizner invoked special powers to suspend a law that requires insurance adjusters — the people who inspect and calculate the value of property losses — to be licensed by the state. The declaration of an emergency allows insurance companies to bring in large numbers of out-of-state adjusters to help process thousands of claims. The unlicensed adjusters must work under the supervision of California-licensed colleagues. “I want to ensure Californians that I will do all that I can to help them through this crisis and rebuild as quickly as possible,” Poizner said at a news conference. “For many, the first step on the road to recovery is to cut through the red tape, have their loss documented and processed for a claim.” Poizner’s action will help insurers dispatch professional personnel to charred areas of Southern California, said Joseph Annotti, a spokesman for the Property and Casualty Insurers of America, a Chicago-based trade group that includes Allstate Corp., California’s third-largest home insurer. He estimated that the fires, which are far from contained, would result in companies paying claims in excess of $2 billion, surpassing the state’s most costly fire to date, the blaze in the Berkeley and Oakland Hills in 1991. “In the wake of [Hurricane] Katrina, we learned that even when insurers called out every adjuster they ever had on their payrolls, [and] people out of retirement, there still weren’t enough folks,” Annotti said. “If this helps get homes inspected more quickly and gets money to the people who need it more quickly, that’s a very positive thing.”

Humberto makes landfall as Category 1 Hurricane- Damage links and stats and adjuster licenses

Fox news is reporting 1 fatality and over 100,000 without power in the aftermath of Hurricane Humberto’s landfall about 2-3 am near High Island, TX. It’s been a real surprise that Humberto progressed from a TD to Hurricane 1 status in the early hours this morning. Fox is showing video footage this morning of the damage in High Island.

 There are reports of a possible tornado near High Island. Reviewing reports on the population of the area, it appears to be about 500 and here’ s some stats on where this is located:

HIGH ISLAND, TEXAS
Galveston County, Texas Gulf Coast
Hwy 87 and Hwy 124 on the Bolivar Peninsula
21 miles S of Winnie
47 miles S of Beaumont
19 miles NE of Crystal Beach
26 miles NE of Port Bolivar
Population: 500
Here are two updated news reports out in the past few minutes about the one death and the power outages here and here.

Here’s a hurricane blog from Lake Charles, LA for further updates from the Louisiana area. Here is also a link to the state of LA Executive Emergency order. Louisiana Citizens Property Insurance does have some binding restriction notices posted yesterday here. Before you accept an assignment working their claims,  you might want to read these articles here , here,  and here on the financial records problems and other issues faced by this organization. It sure doesn’t seem that the $220K salary for the head of this group mentioned in this article is worth the hornet’s nest he walked into!

 Some of you may also find this blog humorous about one writer’s storm damage from Humberto which gave me a chuckle this morning.

Reports about Hurricane Humberto landfall from several sources this morning:

Reuters News

Beaumont News

Port Arthur News

Houston AP news

Checking the TX emergency management site, there have not been updates since about 8pm last night. This always drives me nuts as we have the same thing happen in FL for the most part where we can gather more  current news from the local press than the emergency management websites . The link is posted here anyway to check back for new updates. There is also nothing yet up on the Texas Windstorm Association news but here is the link to check back for updates on claims.

Here is the link for Texas emergency adjuster license information.

Here is the link for the Louisiana new 2007 adjuster license information and the emergency adjuster report form here.

Prior blogs here provide links for those of you deploying who may need temporary housing while this link provides information on billingual transcription services. We also hope those of you that are new take a few minutes to review this timely article by Mariposa LTD with great advice on Time Management when starting a storm and this blog by guest blogger Steve Ebner on Crisis Management while dealing with policyholders. It’s also important for new adjusters to remember how important agents are in the claims process so you might want to review our blog on agency and claim relationships here. Disaster communication and a discussion on throw away phone advice is here.

The latest 11am reports showing winds now at 63 mph can be viewed here and the projected path  and information on other tropical information here at Ralph’s and at Caribbean36o here.

Commitment-Part 2/ Standby Calls / Emergency Adjuster Licenses /Cat Codes

We’ve beat the topic to death on the change in the need for independent adjusters. Here’s one additional  article from the Canadian Underwriter quoting AMBest not only on the reduction in the numbers needed but also discussing downsizing. This morning, I had another disturbing call from a Claim manager from a large firm who was just told that his firm in Florida would be closing their Florida operations in the next few months due to the lack of assignments caused by  carrier actions on policy cancellations in FL leading to less potential for future assignments. I am sure we will be receiving many such calls in the months ahead after these non renewals take place as more quality well qualified individuals are “downsized” right out of their staff positions during this major insurance crisis facing our nation.

So what does this have to do with current standby calls as we now hear of tropical depressions 8 and 9 in the gulf and the mid atlantic? Here is the link to today’s post on the storm information. Here is part 1 in this series on the commitment problem in the independent adjusting field so you can view that before this discussion on standby issues.

With these two new storms will come the next round of “standby” calls that adjusters will receive from numerous firms. Adjusters report in our forums over at ClaimSmentor that they receive numerous calls from multiple adjusting firms when there is a potential for landfall or a new storm event such as a hail storm, earthquake, or tornado causing significant damage. These standby calls are made by adjusting firms to both experienced and inexperienced adjusters contrary to many forum posts you read that only the experienced will be called. We’ve completed polls and have talked to many adjusters to confirm this on our site. We actually have many trainee adjusters out on new storm assignments now putting their hard earned training to work as these firms develop new candidates for the future success of their operations as many adjusters reach retirement age. Everyone is usually contacted as they do not know how significant the damage may be and will later prioritize those sent out based on experience once better information becomes known on the actual numbers they need to send on to a carrier.

There are several stages of deployment utilitized in our industry.

First, the carriers have major national catastrophe departments who monitor these systems and weather events. You will constantly see news announcements about adjusters on standby for the carriers. Here are just a few of the many examples here from Boat US on their cat team and an old announcement from Travelers on deployment of their catastrophe team and resources. How about this recent Chubb Insurance announcement for the option to deploy emergency water and restoration firms to handle claims instead of adjusters? We have put an entire comprehensive list together on ClaimSmentor of all carriers catastrophe teams we have located through their websites and news releases for adjusters interested in staff employment for catastrophe work.

Carrier catastrophe departments differ on the way they decide whether or not to activate this department. Some carriers deploy these teams only if requested by a region’s executive department once a threshold such as 1,000 claims with the same date of loss are reached while others use catastrophe teams no matter what the work load is. Some carriers prefer to send in staff adjusters into a damage zone or utilize independent adjusters to assist their local operations as branch assist adjusters. I regularly see press releases from Farmers Insurance on small storms announcing the arrival of their storm teams and drive in operations which is quite impressive! The new developments with many carriers the past few years include the claim central operations and only limited assignments to field independent adjusters for building estimates while they handle additional living expense claims and contents claim inventories. Remember just because ISO declares a cat code that the carrier may or may not declare a cat and issue a cat code of their own depending on their own company statistics on loss damage. The carriers have increased their national catastrophe teams in the aftermath of Katrina so currently there must be huge numbers of losses before activating a large number of independents. These very decisions are going on in carrier offices nationwide at this very moment with the soon to be Ingrid looking like it may develop into a strong storm.

We also have ISO and the Property Claims Services offices setting designated Catastrophe Codes for insurers once a catastrophe event  has been designated.  Here is a recent report on catastrophe 17 and 18 from their services. You will also find these articles  here, here, and here on what is involved in setting a national catastrophe code which PCS defines as “an event that causes 25 million or more in direct insured losses to property “. The third link above gives information on the types of property it maintains the stats on for many insurers.

Insurance Departments also determine when a storm has been assigned as a designated catastrophe allowing adjusters to work in their state under emergency adjusters licenses as these links from TX, FL, and LA insurance departments show. Normally, emergency adjuster licenses are good for one storm or one hurricane event but here is an example from 2004 where the Fl Dept of Insurance allowed adjusters to use the one emergency license to work for all 4 named storms. Note that FL has new rules for emergency adjusters as of 2006 and LA has a new license law for adjusters in 2007. Pre- storm season is the time most adjusters make the decisions if they will apply for non resident licenses or work strictly off of the state emergency licensing procedures. There are pros and cons to both schools of thought we’ll discuss in another blog. Basically, some don’t mind complying with continuing education requirements to maintain the licenses for a non resident and like the fact they do not have to pay new emergency license fees for each new storm assignment. Having a non resident license also allows you to work all types of assignments in the state if you have the proper license while an emergency license limits you to work the designated catastrophes only. Many adjusters are not even aware that some states allow you only to work under an emergency license for the one adjusting firm you are appointed for and require a new license as you change firms. I haven’t quite figured out how adjusters are doing claims when they are working for multiple adjusting firms although appointed by one firm (self appointment applies to permanent resident and non resident licenses in FL not emergency licenses). Emergency adjuster licenses also are normally limited to a very short period of time such as 90-180 days and adjusters don’t enjoy the hassle in the midst of trying to work claims to complete paper work required to get extensions on their emergency licenses.

When carriers conclude their analysis of potential landfall, the number of policies in force in a given area, and the potential number of claims they expect, they will put the adjusting firms on standby. There is no guarantee they will actually be activated and the number of adjusters they expect to need from the independent firms is strictly a “guess-timate” as to what they will need. We posted a link in Part 1 of this series to the article  where the reporter followed Crawford and Company and reported about this that we highly recommend you read.

The adjusting firms will often call upon adjusters even before they receive the first call from the carrier knowing they have contracts lined up with them should a major storm require their services. Adjusting firms tell us at this point they start looking at their core group of dedicated adjusters and check for licensing history as it may make a difference in their selection depending on licensing options. If it is not a declared official catastrophe by the state, they may need folks with the resident and non resident license. If a cat has been declared, they can use other adjusters under emergency licensing guidelines such as the ones linked to above. Some firms “jump the gun” and pull the standby trigger too early afraid folks on their rosters will sign on board with another firm while others wait for more assurance on assignment numbers. It is a very tough call and balance to maintain to know exactly when is the right time to make those standby calls. An interesting discussion with a new adjuster last week reminds me that those of us who have been in the business for a while take it for granted that everyone understands these terms when this new adjuster told me they didn’t realize that a standby call was storm specific and they thought they were still on standby long after storm assignments had been made.

Adjusting firms consider standby to mean they do expect to activate and send you out based on preliminary assessments they have initially been given from the carriers and their own research and evaluation of the damage potential. The purpose of the standby call is only to check for availability. They do expect you to give them either a yes or no decision. Therein lies the problem. Should you say yes or should you say no to a particular firm? Should you “fee schedule shop” or just be direct and tell them “no”. Should you say “yes” even though you don’t know? What are the consequences as far as your roster placement in the future with a particular firm depending on the answer you give them when the standby call comes in?

The reality is that it is a very tough decision for adjusters to make. It is much easier if an adjuster has a history with an independent adjusting firm and knows their reputation for prompt payments, they’ve viewed the independent contract and agree to the terms, and they have deployed with them before and know they make good calls rather than “calling wolf” and activating too many adjusters once too many times without concern for the need to send them back home by over staffing. The problems come in when those “A” firms haven’t called them and they are considering acceptance of assignments from other firms. Many adjusters indicate that they will tell all of the firms “yes I’ll be on standby”.. “please fax me over your fee schedule” and they take in as many fee schedules as they can during this standby period to make their decision and end up going out with the firm who actually “activates” them with the highest fee schedule. Most concerning is the fact they do not call back the other vendors they gave a “yes” to on the standby calls to let them know they will no longer be available. The 2nd group of adjusters is at the opposite end of the spectrum and will say “yes” to one and let others calling know they have already accepted a standby call and will call them back should they later find out that firm A isn’t going to need their services. We’ve found a third response used by some adjusters to be the straddle the fence response such as “thank you for calling, let me see if I can clear my calendar and call you back within 24 hours” while they take a wait and see attitude on what other calls may come their way. Anything other than a “yes” and you are taking the risk of missing an opportunity for work if “A” doesn’t activate you. You know that and they know that. It’s a very difficult call.

The questions come often from new adjusters “how long should I wait for them to call me back to actually activate me” and “what if another firm calls me with a higher fee schedule….what should I tell the first firm I said “yes” to”? What about the issue that an adjuster may have said yes to a firm only to receive their contract by fax and determine they are not willing to agree to those terms?

Adjusters need to understand what happens once they’ve agreed to be placed on standby. The adjusting firms submit the names of their standby adjusters to the carrier in preparation for receipt of files. It is not uncommon for carriers or adjusting firms to begin using those names to assign files the moment claims begin coming in. Ever wonder why you are being told by an insured you are the 3rd adjuster name they’ve been given on their file yet you see not one prior log entry showing the file was reassigned to you? Many times it is because of this very reason known as “no show” adjusters. (There are many other reasons this could happen during zoning assignments when a carrier finds out that too many claims have come in to an adjuster assigned to a particular territory and move the claims to even the workload for prompt claim handling and this is all going on while your traveling to the site or in induction center meetings before you have even seen the files). I was astounded to find out from many adjusting firm managers how high the percentage is on “no shows”. One firm provided the history of 800 employees on a roster and the inability to activate 200 of them as the majority had accepted other assignments during Katrina.

Standby is not a guarantee or an activation of your services. It is an “are you available” call when handled properly. In the past, there were no fees offered for you to “standby” waiting for the activation call. However, during Katrina and other peak events, some carriers will offer a “standby” fee usually stated as a given flat rate per day while you are waiting to be activated. This gives the carrier some assurance they can actually count on those independent adjusters the firms have called upon while reimbursing them for possible lost income had they accepted another assignment while they standby for this carrier. During 05, our firm received several staffing requests that included these offers. One carrier’s standby fee was as high as $5,000. I would not count on potential standby fees as a sole factor in assignment consideration. First, there are very few of these slots open and they are quickly taken. Second, they are usually tied in to production factors such as ” if you conclude X number of files within 30 days” yet you have no control over the many delays in getting closed files through the approval chain. Third, we’ve seen many tied into the criteria that the standby fee only applies “until you get assignments” and we’ve heard many stories of adjusters handed files at 5pm on the 1st day after induction classes all day who are told the standby pay did not apply since they did get files day 1 much to their disappointment when they still had atleast 2 more travel days to get to their assigned claim territory and locate housing. Consider yourself very fortunate indeed if you have been the recipient of a standby fee. This was unheard of years ago but goes back to the supply and demand issues carriers know they face when the “big one” hits like Katrina. When resources become limited , they are willing to make concessions such as standby fees and increased fee schedules they previously never considered but you should not wait for such tempting offers under normal catastrophe conditions. Right now, there are literally thousands of experienced adjusters waiting on work and it looks very doubtful you should expect to see such offers this season.

It is important to consider many other factors other than just fee schedules and fee splits when determining your vendors of choice. How much support will the firm offer in the field when you have questions? Have they staffed up their support and accounting operations for a major catastrophe so invoices are promptly billed and followed up on? Do they have the required management experience levels to help you out on some of the tough coverage decision calls? Will management respond to your phone calls when needed? Are there enough managers to promptly process your closings so your files are timely invoiced? Does the adjusting firm have a fair contract? Does the adjusting firm pay you before or after the carrier pays? What kind of reputation do they have with other adjusters? Does the adjusting firm have good induction center material providing you with the carrier guidelines so your files are not rejected? Are you familiar with the carrier file requirements they plan to deploy you to and are you willing to handle your files accordingly? Does the assignment require electronic claim file submission so you can more promptly conclude your assignments or is the carrier going to require unnecessary trips back and forth daily to pick up and drop off new and closed  paper file assignments? I would rather work for a lower fee schedule or fee split for a good organized firm I can count on any day as an adjuster as would most good quality experienced adjusters.

 The next stage is “activation” or “deployment” where you are expected at a given catastrophe induction center meeting or assignment within a very short time frame. Those calls go out to the adjusters who have given a solid “yes” to the initial standby availability calls. It’s interesting to read the stories that many firms are even using automated voice mail systems to notify adjusters of standby needs such as this news article by Brush Claims and using online data systems to receive the standby confirmations from adjusters rather than relying on the telephone calls we were used to. Here’s another firm’s announcement from 2006, Mariposaltd,  about a similar service. I’d like to think these automated services also go back and notify those who did accept standby when to stand down if their services are not needed.

I’ve had several adjusters even pass on information that they have gotten follow up calls AFTER THE STORM from adjusting firm managers wanting the status on files electronically assigned to them when they didn’t even accept an assignment from the firm or know they’d been assigned files so you have to be very careful about who you give a “standby yes” to which assures you understand  each other on exactly what that firm expects of you if you told them you’d go on standby. Apparently, some vendors consider this a definite while many adjusters do not.

When the activation calls do go out, the adjusting firms are normally given a very restrictive period of time  for adjusters to report for assignment as induction center meetings are normally required and the dates preset. Now is not the time to be going on vacation or asking an adjusting firm for an “exception” to a reporting time frame as they have committed you to report within this given window of time. There can be serious damage done to the reputation of an adjusting firm by not delivering the service level of adjusters they promised the carrier they can produce. Citizens of FL imposes a $1,000 fine per adjuster not reporting within their stated deadline. You need to watch these contracts you are signing since many only state fines assessed to the adjusting firm will be passed on to the adjuster. If you have signed a contract and agreed to go on standby and “no show”, watch for further contact about these fines. I would think some of these new terms in contracts is to try to stop this very problem of adjusters accepting assignments and failing to show up when they reported to a different adjusting firm.

There are alot of resources at the carrier level and the adjusting firm level involved in assigning  adjuster HR records,  matching adjusters to claim managers and reinspectors, territories, and file assignments. All of that work must be processed again as well as involving many other support folks to reassign files and locate replacement adjusters. It also puts the carrier in a bad light when an insured is told their file is constantly changing hands yet they have not heard from anyone not to mention the “heat” the adjuster who does call is going to get when calling an insured. You cannot blame an insured from being utterly frustrated by constant reassignments without the first inspection.

I don’t have any question about the ethics an adjuster should have when accepting assignments or agreeing to placement on standby whether for assignments they agree to with my staffing firm or with adjusting firms. Someone accepting an assignment and not showing up would be removed from our firm rosters as well as other adjusting firm rosters. I’ve had this come up several times while filling staffing requests on daily assignments with a firm “no” to a candidate that looks promising when the adjusting firm recognizes the candidate and recalls a “no show” situation.  Everyone understands the inability to commit due to all of the unknowns and in the majority of cases I do not think most adjusting firms would harbor any ill will if you give them an honest ” I’ve accepted another assignment, please consider me for your next opportunity” unless you’ve been known as one of their core adjusters who is regularly activated for assignments. Is what they do mind is counting on you when you’ve told them you are available then you not reporting for storm duty.

Tom Rongstad, a moderator on ClaimSmentor, made this comment in an ongoing topic about commitment which I think is very good advice saying :

” An adjuster just entering this profession, whether it be a staffer or stormer, can have all the education and training certificates available from all the companies and possess the knowledge to operate several estimating programs having incurred the costs to do so. However, that person still does not have a reputation. That is one thing that can not be purchased. It comes with many years of commitment and hard work. Once you have it, you will not be the one turned around when the claims anticipated by the company do not materialize”

*******

While we can’t give you a simple answer on the standby ethics….only YOU can decide what kind of reputation you want to have in this industry.I’d give that some very strong consideration when formulating your plan of action BEFORE standby calls for TD 8 and 9 come in. Actions speak louder than words. Remember, the decisions you make when the calls come in will be decisions you must live with that will bolster or harm your reputation for years to come. The time for doing research on a firm was before you applied not after you get the calls from firms you sent resumes to. You should be in a position to make the decision on who your “A” firms are now- not next week when the calls start to roll.  Make a list and organize it into your “priority” firms just as adjusting firms decide who their “core” adjusters are they will call out first. This will help you have a clear head and a logical thought process when the time comes.  I had the opportunity to work with a fairly new adjuster during the midwest flooding as she sorted through 6 deployment offers from various firms. It was easy to prioritize them when she asked herself some of the many questions listed above in addition to reviewing proposed fee schedules. I’m very glad to recently learn she is happy with the decision made for the midwest assignments.We hope the strong majority of ethical independent adjusters will help preserve our industry by doing the right thing in representing the staffing firms, adjusting firms, and carriers they serve by handling these standby calls professionally knowing the big picture and how your decisions effect all catastrophe operations.

We wish everyone a safe trip should you deploy for one of these events. We invite all adjusters or claim managers to join us in the ClaimSmentor forums for ongoing discussions on these very topics. 

The Big “C”- Commitment problems with Independent adjuster relationships, advice by Guest Blogger, Rocke Baker

The recent wave of storms such as the hailstorm in CO and the midwest flooding has brought on a flurry of new discussions in our adjuster forums about the lack of commitment in the independent firm/ independent adjuster/carrier relationships.

We had previously discussed the reasons for the problem of commitment in this blog titled “Are Adjusters Fungible Units…Are Independent Adjusters a Dying Breed ” here.

Just one example of the problem pointed out recently is an adjuster  “Bill”  activated to go out on assignment to Colorado for the recent hailstorm by a major adjusting firm. To work, the adjuster needed to activate his Xactimate subscription for an active key code. He indicates activating the subscription and other expenses incurred within the first hours of being activated cost him in the neighborhood of $430.00 before he ever left home. Three hours later, with RV hooked up, work equipment packed and loaded, truck fueled and ready for departure, the adjuster was told the adjusting firm had ”made an administrative error” and they cancelled his assignment ( what a waste of his time- hooking up RV, gas expenses incurred, packing, and activation of the Xactimate subscription). The adjuster tried to get the adjusting firm to reimburse him atleast the cost of the Xactimate  subscription they told him he was required to activate to no avail although he could not get a refund from Xactware on the expense as of our last update. No apology…no refund…the adjuster had to just eat the expense for an estimatic system he did not need until assignments are received. There was no misunderstanding that this was a “standby” call, the firm had been clear he was activated and was to report for duty. This adjuster and wife worked storms for a major adjusting firm during Katrina and knew the ropes, they were not trainees. Knowing this couple, I also know they incurred over $10,000 in seminar and conference training expenses in 06/07 attending seminars AFTER Katrina duty to improve their adjusting skills for the…next big one. Needless to say, this couple is more than frustrated with the current deployment situation and lack of dedication to adjusters servicing claims for the adjusting firms and carriers.

This reminds me of another storm years ago where another catastrophe adjusting couple were working out in CA doing clean up duty on daily rate (both working managers). Their adjusting firm asked them to relocate to the east coast for a new storm. They moved their RV and equipment cross country to a tune of thousands in relocation expenses to go cross country, set up at a new RV park, and to get utilities and phone service situated for long term assignments in the NY area. They got 12 claims and were sent home when the adjusting firm didn’t get the expected number of assignments and did not get back their daily rate assignment back in CA since they’d been replaced once they accepted the new storm assignment (with the same vendor).

We received feedback on the situation from several experienced adjusters. Rocke Baker agreed to provide advice for adjusters for this blog and provides this commentary and advice:

Subject: Storm Business by Rocke Baker

Most of us old timers have at one time or more been called up, began the trip or even made it to the site only to be told the work is not there or we called too many. Hard feelings yes but that is the nature of this beast. Will firms reimburse you for expenses when it was their mistake? Sometimes, depending on the firm and the carrier. Many will not. I have been lucky that the one time I was called out and was not needed, at least they paid a per diem for 5 days while we waited. Other IA firms did not fight for the per diem and those folks got nothing. 

If you have less than 4 years in this business it is extremely tough. There are probably 20,000 adjusters (Just look at Texas DOI. There are over 40,000 adjuster licenses issued out of that state) that have less than 4 years along with those with 5 years or more all fighting for the same piece of the pie. Cat adjusting is like being in the union. Seniority, time in the job and have you worked for them in the past means a whole lot more that classes taken, certificates and the like. If you did a commendable job in any of the ’04-’05 storms, you have a chance of being called up. If you have never worked a storm or have never worked a claim the chance of being called up is slim.

Companies ramped up their cat crews in early ’06 in anticipation of a heavy year. Nothing happened. They will work those people heavy before any of us are called by them. This year is not the year for cat adjusting so far. It has been pocket storms and not many people have been called. I passed up one gig for about 50 – 60 files as one carrier called and said that they would have about 20 – 30 for me at home. Since this carrier had kept us eating at the end of last year and gave us files as overload this year, we declined the out of town run to be loyal to the carrier. Well, that did not pan out. Got 16 and 5 of those had already been inspected by staff, 2 withdrew their claims and the other will not call back or respond to letters out of the first 8 they gave me. And nothing else has come in. That is how this game is played. You have to have other plans of action to make a living until the major hail storms (50k homes hit) or a class 3 or above hurricane hits a major city.

It has been said in Claims Mentor & CADO by experienced adjusters, you have to have something to fall back on during slow times. If you sit back and wait for that call up, it may be a very long wait. This is very true since 2006 and through right now as I am writing this. 

Being a cat adjuster is like being a gambler. You buy your tickets and take your chances. The reason that my wife and I got into this was not to get rich. We had been staff for more years than we want to think of. We got out because we were tired of the everyday grind. We wanted to work a few months, make money to live on and hope to put a little away. Well, we are working like plow horses doing day claims to stay slightly ahead of the game. It feels like we are on cat. These files do not pay the greatest but we are fortunate enough to have them. I’m writing this while taking a break. 

So many people have been trapped by these “adjuster schools”, being told you have to take this or that to get on a vendor list etc, it is sad. All this has done is make money for firms and have taken money from the folks who can least afford it. As was said in CADO a few days ago, it seems like some of the vendors call up a few under 4 year adjusters for a storm. Maybe they think that if they give them a few files and make some money, they will take more and more “training” classes. More money for the “training” division of that vendor.

Remember, keep the forum comments constructive be it critical or complimentary. Companies read these comments as well and remember who is saying what and when. 

Rocke Baker  305-781-1691, Rocke Baker is a long term adjuster. He had worked for years as a staff adjuster and currently serves the claims industry in the capacity of daily and catastrophe loss adjusting.

********************

Let’s take a look at this from the adjusting firm standpoint. What do they have to say? This excellent article discusses the challenges, resources, and investments in activating adjusters from the independent adjusting firm standpoint when reporter Mathew Brodsky interviewed Crawford and Company on activations during 2005. It reflects the expenses adjusting firms also face which often leads to disappointments for them as well as the adjusters they deployed. There are also interesting comments in this article about the former “Indiana-Jones type senior adjuster versus training new adjusters in today’s environment. While the article is long, it is worth the time to read. You can see from this article, the independent adjusting firms receive a request for a given number of adjusters which may not pan out once the carrier’s determine the actual number of claims versus the projected number of loss assignments and face the same cancellations of their requested services.

Watch for tomorrow’s blog with an explanation on these commonly used terms such as standby, deployment, activation and a good discussion on adjuster ethics on handling the many standby calls received once there is potential for landfall due to hurricanes or sudden damage from hailstorms, tornados, and other weather events triggering the need for independents.

Adjustin’ to Adjusting-Guest Blogger Linda Goodson-First Storm Duty was Katrina

In our first of a series of new articles by adjusters on their experience the first time out on the road as a catastrophe adjuster, we have  Linda Goodson out of Enterprise, AL sharing her experience as a first time cat adjuster during Katrina.

Linda is a ClaimSmentor Honor Award lifetime member due to her major volunteer contributions on our site assisting with class certificates and preparation of material for exhibit booths we attend at claim conferences. She has spent hours this year attending adjusting firm seminars, obtaining carrier certifications, and also attended our 40 hour Fundamentals class picking up many things she says she wished she had known prior to her first time out on the road. Below you will find a summary of her experience not only on her first cat deployment but in her recent efforts to complete FEMA damage assessor training which many adjusters are doing to supplement their income during non storm assignment periods. Linda also had a short stint with the LA Road2LA program in 2007. Linda’s email is woodnnails3@yahoo.com. We hope new adjusters can learn things to expect from our guest bloggers sharing their experiences. Linda’s bottom line advice to other new adjusters is to accept in office assignments vs field as shown in this following comment from Linda followed by her story:

I worked Katrina and Rita from September 05 to April 06 in the capacity of field adjuster and agent advocate. Volunteered time with adjusters working supplementals and doing some scopes here and there with a small IA firm that belongs to a family member.  If there’s a way to save money, this gal can find it. I lived in a pop up trailer most of that time in the field spending around $200 a month for a place to park it. Honestly, that first year, I think I made more in office than in the field just because of the cost of working field versus working office  still not knowing the cost cuts that I know about now. It was a guaranteed amount every week. During these two particular storms the going pay was around $10,000 a month. No software costs, low gas usage, and when I retired for the evening, I had no phone calls to deal with as it was 12 hour days, 7 days a week. You just have to decide what you can do and no matter what you decide, do it to the best of your ability. The people your there to help deserve that.

**************

What an Experience-Katrina duty-My First Time Out! By Linda Goodson

 

Okay I admit it. I’m covering all my bases. I decide to up my chances of work by applying for a position with a Federal Agency.

I was told to get my fingerprints done I would have to drive to their nearest facility which was 1.5 hours from where I live. When I asked why I couldn’t get my fingerprints done at my local police dept., they said they felt more comfortable allowing their own staff to do it since they were more efficient and the process was much quicker for them. Made good sense to me that they wanted to use the people they had trained to do this. So I drove to the facility with social security card and drivers license. Everything I needed in order to make this a smooth process.  I didn’t want to slow down this well greased machine they were sending me to.

 

When I got there, the employee in charge of doing my most efficient and quicker process was stressing that she wasn’t sure what was wanted but she would do her best. It took her approximately 30 minutes to figure out what information her computer wanted. When she couldn’t figure it out she said, “Oh well, whatever doesn’t end up on the fingerprint card, I’ll just write it in”.  While she fumbled with the computer, I asked her if she wanted me to go ahead and complete the paperwork. “Oh no! That will take you a WHILE to complete. In fact, you may want to take it home and fill it out”.

 

Finally, she did enough on the computer to make her feel she had done her job well, and we began the fingerprinting. As a former law enforcement officer, I knew these prints were the worst I had ever seen. I was relieved when she made a mistake of some sort and had to start over. But to my dismay, the second set of prints was just as sloppy. However, she was convinced they were gorgeous and there was no convincing her otherwise.  What took 10 minutes to do the week before at a police department for my FL adjuster’s license, took her 1 hour 20 minutes to do and it was incorrect.  And as I was leaving I realized they were packing up to go home. Hmmmmmm … I looked at the paperwork she handed me on my way out. It would have taken me no more than 10 minutes to fill out.

 

Upon leaving the facility, I called the agency that sent me to them but got no answer. Finally 30 minutes later, I got an answer and I’m put on hold for 12 minutes. I hung up when I realized their office had closed 5 minutes ago and they probably weren’t coming back.

 

When I got home, and began looking over the fingerprint card, I noticed she had switched my birth day and birth month. Once again, I called the agency to hopefully stop this card from being sent to Washington. To my surprise someone answered, allowed me to explain what I was concerned about, politely put me on hold. 15 minutes later, I hung up.

 

Email!! I would email them. Just a brief email explaining my concern of the incorrect information but I’m still waiting for a response.

 

As I sit here, I’m reminded of my first year of storm season employment. It would seem if you were doing everything they wanted done, according to how they wanted it to be done, you would go through some sort of desperate confusion. And it didn’t even have to be a government agency.

 

Really it took me back to my first storm and my first experience with an IA firm. Within 24 hours of being hired, I was expecting that any minute of my training and contract sessions, I would be branded on the butt, or my ear tagged.

 

My first year out felt like I was spun around blindfolded and turned loose at ground zero with a computer in one hand and a measuring tape in the other.

 

The first lesson in adjusting was learning how to adjust to my situations. Let me explain.

 

I passed a training center in my own town, to go to one of their other training centers many hours away, where I had to pay for room, food, gas,GAS, oh my word, gas. Not to mention it took us longer to get where they needed us to be. We spent two days on the road that we could have spent in the class back home. Then our training was cut short. We got three of seven days of training, and we were sent out with a promise that there would be someone there to help us, called a TA. I had seven TA’s in a course of 3 months, and only met one of them. Can I be self-taught? You bet I can. I learned how that year.

 

Very few classes included people that you would feel confident to learn from. People demanding respect by trying to belittle the people they were put in charge of. Talked down to in classes, help rooms, and help lines only to find out that most of these people were moonlighting until their positions were available again at some casino or local bar. If you were fortunate, an adjuster with years of experience headed your class.  As I myself am very talented at many things, I would not be a great teacher. Teaching, in itself, is another gift that I don’t necessarily possess. Trust me, like 7 days of cheese; if you don’t know your software program, your system will lock up. All the knowledge you have is worthless if you can’t correctly get it into that program. It can take you 3 hours to do a scope, and if you don’t know that software, it will take you 6 hours to get it ready to be sent out to the company.

 

One fellow, whom I was told to direct my questions to, was walking around with people following him, grabbing his shoulder with intent in their eyes to get answers they had obviously tried to get elsewhere.

I thought to myself, “If I could only touch the hem of his coat”.  I never could reach him. When there was no one around trying to get life giving information, there was still a wall of conceit, and arrogance. I refused to grovel. There had to be another way.

 

Research was my only tool and I used it daily. Yes, it slowed me down. I wasn’t able to do as many claims as I should have been able to do with good training and support. Atleast what I did was right and I was able to sleep at night knowing that and it helped knowing that I didn’t have to throw my pearls before swine to get it done right for the insured and the carrier I was representing.

 

Borrowed a pop up trailer from a friend. Made sure I got my tetanus and other shots before I got started. I brought my handy dandy first aid kit, rubber gloves, hand sanitizers, and 50 cent face mask. After working 3 months of flooded homes, I found out just how important a GOOD face mask is while spending hours in flooded areas. I ended up hospitalized.

 

I was  discharged two days later from the hospital. I was next  offered a position in office with the same company. As an advocate, I was able to continue helping and that was very important to me. My slight concern of being cooped up inside was diminished when I saw how busy the offices were. Keep me busy and I can handle anything. This gave me the opportunity to see this storm work from a different perspective and I was grateful for the opportunity.

 

After working two offices to completely closing the storm, I was given the okay from the doctors and I began working as an assistant to any adjuster friend who needed help out in the field with supplement claims.

 

In all my dealings, I learned so many things about myself.  I can handle any situation as long as I stay positive, motivated and continue to help others.

 

I can survive a pop up trailer, as long as I stay focused on the people I’m there to help, who lost their home.

 

I can survive pork and beans and Vienna sausage as long as I stay focused on the people I’m there to help who lost  ‘everything’.

 

I can live away from my loved ones during this time, as long as I stay focused on the people I’m there to help who lost loved ones forever.

 

When I look back on the monetary gain, I think about the cost of gas, food, tires, air cards, cell phone coverage, and rent. It takes a lot of money to make a lot of money. The largest reward is in knowing that somewhere each day, I helped someone find hope. A way to get back as much as they deserved, to begin a new life while representing with respect and passion the carrier who believed in me enough to let me be a part of this tiring, challenging, and yet extraordinary line of work of Adjusting.

***********

We thank Linda Goodson for sharing her story with her reality based view of her experience. We encourage other adjusters to share your story with our readers. If you were a first time adjuster during one of the worst disasters in catastrophe claim history, we’d love to hear your story and share your advice for new adjusters.  You can submit your story to  us through our staffing firm. We will publish a few of these stories each week for others to learn from before they go out on the road the first time.

 

While the majority of carriers require a stated experience level such as 2 or 3 years of experience under normal circumstances, many rules had to be bent during Katrina requiring deployment of many adjusters who had completed training and adjuster licensing but had no practical field experience prior to Katrina.

 

The stories of their struggles to complete their job are heart breaking under the worst of circumstances during Katrina storm duty assignments. I know of MANY who worked and were not paid a dime after incurring over 10K in housing ,office, and travel expenses. We hope to make a difference for new adjusters by sharing some of the warning signs  to look for so they are not taken advantage of by the few firms out their taking advantage of trainee adjusters inexperience. We can tell their stories without naming the adjusting firms involved to avoid libel problems. It’s the key issues such as contract issues, fee bills, warning signs, and other key “red flags” new adjusters need to learn to avoid some of the same problems you will read about as these folks share their stories with our readers.

 

You may read in many adjuster forums snide comments about “3 day wonders” referring to the many new adjusters coming from the influx of 3 day (some maybe 3 hours!) training schools for some courses alleging to teach an adjuster everything they need to know to earn big six figure incomes. That is far from the truth. It takes years of experience and training to properly understand the serious nature of the adjuster position. We hope by following our blog entries on adjuster income and some of the lawsuits costing adjusting firms, carriers, and adjusters that you will learn more about becoming a true professional representing the Independent adjusting community well to preserve all of our jobs in the industry. Take a look around the prior blog entries on income and adjusting and take the advice to heart.  Learn from these “new adjuster” stories and stop the name calling. These folks who went out the first time are people with families to support. We need to learn to work together to help mentor them and to improve the training programs available to new adjusters. They do not know that some of these schools aren’t properly training them until they work with experienced adjusters who point out the error of the training processes some are out their teaching. If you read about “how to overcome the three year requirement by vendors” advice you might consider running to another more reputable training facility. I can’t thank the valued experienced participants of ClaimSmentor enough for their constant sharing of information with others.

 

 

    

Crisis Intervention while Catastrophe Adjusting by guest blogger Steve Ebner

We welcome our first guest blogger, Steve Ebner, to our Dimechimes Corporation Adjuster Information Blog. Steve and I share a common background in both staff, independent, and catastrophe adjusting. Steve is also a valued member of ClaimSmentor and CADO.

Steve Ebner has a Master of Divinity degree and is a former United Methodist minister and chaplain at Methodist hospital in Philadelphia.  His second career as a claim adjuster began in 1990, when a claim superintendent at State Farm had the foresight to realize that someone with training in crisis counseling may have skills that would be valuable in claim adjusting.  Steve has been an independent catadjuster since 1998.  He has worked large and small commercial, homeowners, mobile home, and occasional auto claims.  He has worked both the property and casualty claims.  His home base is near Scranton, PA.

Here is Steve’s outstanding blog entry contribution on Catastrophe Adjusting and Crisis Intervention. We felt this article was timely with the peak of hurricane season approaching and the difficulties adjusters face personally as well as while dealing with insureds suffering many personal tragedies caused by storm damage:

Cat Adjusting and Crisis Intervention by Steve Ebner (Medulus@aol.com)  

As cat adjusters we fill a certain niche in the insurance industry in that we are often called to serve those who have experienced some level of crisis.  While this is in some measure true of any adjuster, it may be more intense and widespread during a cat event.

We are not counselors, nor should we attempt to be.  However, it would be helpful for us to have some understanding of crisis intervention to inform our claim handling.  This will only serve to help us settle claims more fairly and finally, and to add another dimension to our ultimate goal of indemnification – returning the insured to a position of wholeness.  More often than we realize, the policyholders we encounter expect us to be agents to assist them in recovering from the crisis they have experienced.  A savvy adjuster will look beyond the surface and see some of the factors that make settlement of claims more difficult in a crisis situation.  Further, they will attempt to address those factors and concerns to the extent it is appropriate for us to do so.  I would like to try to address the concepts of crisis intervention in a somewhat simplistic manner, and relate these concepts to catadjusting.  In this article I will only be scratching the surface.

Let me explain some of the emotional/psychological scenarios we could face by way of an example from my own life.  I was living in Santa Monica, CA, when the Northridge Earthquake struck.  Santa Monica, because it is near the ocean and built on sandy soil, experienced liquefaction more than any other city located more than ten miles from the epicenter.  At about four o’clock in the morning of Martin Luther King Day 1994, my ten year old daughter shook me awake and said, “Dad! Hurry! Get in the doorway!  It’s an earthquake!”  I woke to see my two children and the two children who were staying overnight huddling in the doorway.  The house continued to shake for another very long minute.  The electricity was out.  When the shaking stopped I went into my bedroom. My floor to ceiling bookshelves were all tipped over.  Every one of my over four hundred books was on the floor in a jumble we had to crawl over.  I then tried to put the children back to bed.  But every couple minutes the earth shook again – over and over and over.  No one was going to get any more sleep that morning in the apartment.  About an hour later the panicked mother of the two visiting children arrived to pick them up.  She had been unable to open her garage to get her car out.  There were no phones or electricity working.  Then my children and I went out to the car to sleep because it seemed the safest place to be. 

My workplace had all the windows broken out.  The building was off limits for some time.  There was a curfew in affect the first night.  But that was not a problem because most people were in shock, and didn’t want to go out anywhere anyway.  By the second night, most of the bars were open and packed to capacity.  In the first week many new couples were formed because no one wanted to sleep or live alone anymore.  And the ground kept shaking again and again for months afterward.  Every time it did, people would exit the buildings they were in.  People started talking about moving elsewhere, about how they didn’t like living in Los Angeles anymore.  Every time I closed my eyes and started to drift off to sleep, I would get a sensation that the ground was shaking and it would wake me up.  Every street became as congested as the freeways had been before the earthquake.

As you can imagine, people living in this type of environment are not going to have the same expectations as people living under normal circumstances.  Some may very well make demands beyond the norm of their claim adjuster.

What constitutes a crisis?

I should begin by defining what a crisis is.  The term “catastrophe” as defined by the insurance industry is not synonymous with “crisis” as defined in psychological terms.  “Crisis” has a personal component.  As another adjuster pointed out to me this week, a crisis has more to do with the person experiencing the loss than the size of the loss itself or, for that matter, the number of people affected.  We might find that some people react to almost any severe weather event as a crisis.  However, certain events – for example a hailstorm – are generally not a crisis.  In most cases, no one is injured or killed.  For some it may lead to a personal crisis, but this will be the rare individual.  The hailstorm, however, could be declared a catastrophe because a cat is declared based on the expected dollar cost to the insurance industry. 

Crisis has been defined as “an acute response to an event wherein homeostasis is disrupted, one’s usual coping mechanisms have failed, and there is evidence of significant distress or functional impairment” (Critical Incident Stress Management, Everly & Mitchell, 1999)  We often find insureds who are in this situation after a hurricane such as Katrina or Ivan.  People who, for instance, might normally be rather even-keeled and unflappable may very well be in some level of panic after their roof is blown off or after they have been living in a motel for a month.  Instead they are wondering when they can return to their home or their job.  The “Big Easy” was not taking life so easy by September and October of 2005. 

A Simple Discussion On Working With Someone In Crisis

As catadjusters we are in a position to be of significant assistance to those who are experiencing crisis.  Crisis Intervention, as a counseling discipline, focuses on very practical considerations.  It focuses on identifying resources for recovery.  We are one of those resources.  As adjusters we can be of great assistance in helping policyholders recover a sense of normalcy – the ultimate goal of any type of crisis intervention.  As I have mentioned in my previous article on CADO, I was an ordained minister for more than a decade.  I have sometimes described catadjusting as “ministry with a checkbook.”  More than any other type of emotional intervention, crisis intervention focuses on the practical.

By examining the definition of “crisis” above we can extrapolate what must happen in order to bring some sort of wholeness to the lives of those we serve.  The first element of the definition is that crisis is an acute response.  It is intense but not permanent.  Though it may seem to the insureds that their lives have been permanently changed in a dramatic manner, the fact is that the precipitating catastrophe has created a temporary situation.  While it would be ill-advised for any of us to flippantly tell someone whose house has been destroyed that this is just a temporary situation, there are nonetheless ways to assure someone that they will recover.  Without overstating the case, it is appropriate to explain to the insured that the insurance carrier exists to help the insured return to a normal life after such a crisis.  The fostering of hope is very important when things seem hopeless to those in crisis.  It can also be appropriate to remind the insured of other resources such as FEMA, The Salvation Army, and The Red Cross.  It is inappropriate, however, for us to tell them specifically what these other agencies can do for them.  We do not speak on behalf of any of these other agencies.  We represent the insurance carrier solely.  We must especially never send them to another agency for anything covered by the insurance policy.  Our first responsibility is to include all covered or potentially covered loss elements in our claim reports with our best analysis of coverage.

The second element of the definition is that homeostasis is disrupted.  Even the most creative or disorganized among us tend to follow certain routines that help us structure our lives.  There is some element of similarity in what we do each day.  The precipitating crisis event disrupts this.  If water supplies have been disrupted, the insureds may not even be able to brush their teeth easily upon waking up.  Their routine of watching a television program or reading the paper in the evening may be impossible due to an electrical outage.  They may have no workplace, no mail delivery, no open markets, no open restaurants.  The corner bar where they meet and talk to their neighbors may be closed.  They may be staying in a shelter, sleeping among hundreds of strangers with whom they share facilities.  They may temporarily have no privacy.  This will be particularly difficult for the introverts among them. 

To the best of our ability, we are in the business of helping people restore normalcy to their lives.  Those in crisis are looking to us for answers about when and how life will ever be the same again.  For some, it never will be the same.  There will only be different routines that will create a new normalcy.  We can help, once again, by focusing on the practical processes that will help to create some semblance of order in their lives.

The third element of the definition is that, for someone in crisis, normal coping mechanisms have failed.  What usually works for people to deal with stress in their environment no longer works.  This is particularly true in a major catastrophe.  When someone’s workplace is not accessible, the normal cash flow for a family is disrupted.  The home that provided shelter and comfort is no longer a place of guaranteed safety.  The goal of crisis intervention then, for us as catastrophic claim adjusters, is to help the insured identify means of coping with their new reality.  This may be in the form of assisting them to locate and pay for alternative housing, to rebuild what was destroyed, and replace what was lost.  It has often been expressed on CADO that our job as adjusters is to find coverage wherever it exists and allow for all that we can under the terms of the policy.  Some of the coverage afforded by the insurance policy may not be familiar to the policyholder.  It is our job to know what can be afforded to them in order to help them recover.  In this way we become part of the solution, and fulfill the contractual promise the insurance carrier makes when the insured buys a policy.

The fourth element of the definition is that the person in crisis is exhibiting severe distress or functional impairment.  Though this is the final element of the definition, it is often the first with which we must deal.  This means that when we encounter that policyholder who seems stressed out, unfocused, and scattered we may not be dealing with that policyholder operating in their normal mode of behavior.  This insured may not simply be a “crazy person”.  He or she may be a perfectly sane and rational person who in the midst of a crisis.  The very nature of a crisis is that it disrupts someone’s life and emotional state.  We have all had the experience where we greet the insured at the front door and suddenly it is as if we have entered a vortex.  The insured starts leading us around the house pointing to this and that area of damage faster than any human being could write down the scope of damage, let alone measure it.  Or the insured may continue to tell us all the horrible things that occurred on the day of the storm, or insist on talking continually so we cannot even concentrate on our work.  Then they call each day with some new damage they located or something else they forgot to tell us.  They may exhibit unusual behavior like walking through their house with a flashlight looking for fresh plaster cracks each night.  This is not their typical mode of behavior.  This is likely to be a result of the very catastrophe we are there to help them work through.  This may be because their world no longer feels safe, and they feel powerless to make it safe again.

It is not our job to help them through the emotional component of the crisis, but we need to at least defuse the anxiety long enough to do our job and to obtain the insured’s assistance in scoping the damage.  The first tip I have is that it will benefit us greatly to practice some empathic listening.  The ceramic outlet covers may seem unimportant to us in the whole scheme of the loss, but if they are important to the insured (because the insured keeps mentioning them) then they should be considered important.  We may discover – as one of our colleagues did – that the tattered old phonograph is the only thing the insured cares about because she used to sit and listen to it with her deceased husband.  The claim may not be settling because you want to take it as salvage.  She may settle the claim if you let her keep it, even though it no longer works.  A bit of empathic listening can reveal important details such as that. 

When working re-opened claims the number one complaint I hear is, “That first adjuster didn’t even listen to me.”  Sometimes I am able to review the estimate with the insured and show them that the concerns they have really are addressed in the estimate.  Therefore, the adjuster really did listen.  But it did not seem to the insured that the adjuster was listening, and that was what re-opened the claim.  The claim adjuster exhibited no empathy.  These people were in crisis and it seemed that no one cared.

The second tip I have here is that it is important not to buy into the panic or the manic behavior.  Speak in a calm and authoritative voice.  Invite the insured to sit down, perhaps, long enough to listen to what is important to them and take control of the situation.  We can accomplish little while being led from room to room frantically by the insured.  We may want to say something like, “Let me explain how the claim process works.”  A colleague explained to me that she spends 10 to 15 minutes with each insured simply listening to them and explaining how the claim process works before moving on to the inspection.  She believes these ten to fifteen minutes saves hours later on.  I believe she is correct.  Apparently, so do the people for whom she works.  She and her husband regularly work even in slow times when others are waiting for the phone to ring.  Most people have never had a claim before and do not know what to expect.  Take a few minutes to explain how you would like to take one room at a time, check that room thoroughly, measure it, and then move on to the next room.  Then explain what will happen with their claim after you leave their house.  This will often save you a time-consuming game of phone tag later.  All this may serve to put the insured at ease and move them gently out of panic mode.  Even if you have ten other inspections that day, it will benefit your scheduling to take a couple extra minutes to help the insured focus on the task at hand.  It may mean the difference between scoping all the damage on the first trip and having to return to this insured’s home to scope something that was missed the first time.  Though you are really not offering any long term emotional help for the insured (because you are not there as a counselor, pastor, or psychiatrist), you are focusing on one of the tasks that will help ultimately resolve the crisis. 

This has been a mere skimming of the surface of the issues involved in working with people in crisis.  I suspect the most important goal I have tried to achieve is simply fostering awareness that we are not dealing with people in a normal situation or normal frame of mind.  Therefore, we may need to be in a state of heightened awareness ourselves, and not simply write people off because of some exhibited bizarre behavior after a major catastrophe.  We are generally paid very well to handle a catastrophe, but we are not really hired to benefit ourselves.  We are hired as a benefit to the insured.  Our problems should be left at the motel so we can focus on the insured’s problems.  A brief study of crisis intervention techniques would serve many of us well.  This should go without saying as we prepare to go into a hurricane zone, but it may not occur to many of us that the emotional result of a storm may have a significant impact on the interaction between the insureds and ourselves – or, ultimately, of the claim settlement process.

  I would like to express my gratitude to those who reviewed this article before publication, and in many cases, contributed something of value which I incorporated into the article.  These people are Pastor Lee Carlton, Peter Burch, Mike Kunze, Deb Moroy, Meg Watts, Steve Beaumont, and Janice Toll. 

Splish Splash don’t go takin’ a bath- Understanding independent firm contracts

 I love the way music so aptly expresses so many things going on in life and love to use songs that help express issues much better than words ever can.  It’s a light hearted way to remember a principle we’re trying to drive home for  adjusters. Last week, our claim song of the week was Peter, Paul, and Mary’s song “Where have all the flowers gone” as our theme song for adjusters on “where have all the claim files gone ” here in this blog. This week we’ll talk about splishin’ and a splashin’ out on your new assignments and delving through the terms in many independent contracts. Here’s the link to the Splishin’ and a Splashin’ lyrics so you can follow along!

Every storm season brings out some of the best and the worst of adjusting firms and  contracts. We hear of adjusters “takin’ a bath” on their fee payments over some of the contract issues and non payment issues going on with hopefully a small number of unscrupulous firms.

Here are links to two very good commentaries on contracts. The first  here  comes from a blog entry over on CADO made by a senior adjuster and this article  by Donny Greer of Gulf States Training at the University of North Texas who shared this article with us over at ClaimSmentor with permission to post it in our blog :

Selection of a CAT Firm or CAT Claims Company

by:  Donny Greer of GulfStates Insurance Training at University of North Texas

http://www.adjustereducation.org

CAT Firms or CAT Claims Companies come in all shapes, sizes and flavors.   Not to mention their expertise levels and experience in running a real business.  
This type of business model structure brings out the best of  people and unfortunately the worst.  

Here’s what I am saying:  

These types of firms are generally started and run by professionals who are truly educated and experienced in both business and the insurance field with an emphasis on claims processing.  By and large, these firms are honest, forth-coming, and are personally chartered to “do-the-right-thing”.   But as you know, each and every field has its wolves!

Firms that process claims for insurance carriers earn their keep by accepting under agreement a claims assignment report containing many claims, from ten to five hundred, maybe even into the thousands as is the case during a major storm.   These claims could be auto, home, business and even in some cases casualty claims.  These homeowner types of claims are then farmed out (contracted) to Independent Adjusters whom are then sent out on the adjustment path to glory.  At least that is how it starts out.   

When I/As (independent adjusters) take on these claims, they likewise do so under the control of a contract offered to them by the CAT Firm (firm).   This is where things can first start to erode.   First, you receive a call from some firm with whom you have earlier registered with.  Next they ask you to go to the distant site.   With all your excitement, you’re off and running.  Now all seems well.   

Soon on the site, you are usually required to attend a Storm Meeting held by the firm with the goal of orientating new adjusters.  This meeting is quite beneficial as this is the place where all information is conveyed to the adjusters now on-site.   Miss this meeting and you miss the boat on policies, procedures, introduction to storm support personnel and so on.  Sometimes unscrupulous CAT firms purposely wait until you are at the storm site, and have incurred expenses before they present you with a contract to sign.  Don’t sign, and you must go home.   Could this be a contract signed under duress?  

What? you Say! 

Any contract is necessary for you and the firm you are working for, as it is the sole document that list out your agreement to provide services and spells out expectations of both parties.   This is a good thing as Martha Stewart has Said a few times.   The problem is not all firms are looking out for the adjuster’s best interest.  Read on… 

Most of the better firms out there are good, honest and looking out for the adjuster, and ask the adjuster to sign the agreement prior to deployment and before you the IA incur expense, but some, want you to bring in money for them, and under a very strict agreement written with mainly their interest in mind.  These firms however, are only concerned with a fast buck, and a BIG BUCK at that.   

Be aware of any contract wording BEFORE you leave your home for a storm.   Do yourself a favor and read the contract they are asking you to sign, before you invest in doing business with a firm you don’t really know.   Never wait until you have arrived in Ft. Lauderdale, entrenched in a hotel, in debt. for a new laptop computer, and then review a contract!  Know before you GO! 

In reading the contract, look for clauses where you are waiving your right to sue in court.  Read carefully the section that covers the adjuster’s hold back portion (portion normally held back by the CAT firm until all claims have been paid and settled).   Know this percentage BEFORE you travel and begin working.  Holdback is normal and there is nothing wrong with this type of arrangement.   Just be aware of how a contract might address such an issue.    

Again:  KNOW WHAT YOU ARE SIGNING  AS BEST YOU CAN. 

CAT firms bill the carrier based on the gross amount of say one of your claims.   They publish to you a fee schedule showing how you earn a percent of the billing amount.   The billing figure being an arbitrary figure listed on the fee schedule.  Shown as a split, in some cases 40/60 with 40% for the firm and 60% for the adjuster.   One question that comes to mind is what is this percent actually a percent of?  It is a percent of what the firm says they are billing the carrier for the claim.  Fact is, you don’t really know the true amount of the billing from the CAT company to the carrier, only what you are shown on the fee schedule. Your fee schedule only reflects your percentage of some listed amount published for the sake of the fee schedule’s completeness.  You are only allowed to see and know what some limited number of these firms want you to see.   

Keep this in mind when shopping for a firm to work for.  A 40/60 split sounds good, but your 60% is 60% of what?  You should know this answer  before you get engaged with a firm and way before you travel on your dime to a storm site.  You just might be working for pennies, not knowing it, and lining the pockets of some unworthy CAT Firm.   Be wise to Check-It-Out.  And beware of ads that solicit adjusters with talk of 70/30 and 80-20 etc., etc., etc.   Without you knowing what this percentage works against, you might be actually working for less that other adjusters with splits of 40/60. 

Speak with other adjusters on adjuster web sites that post experiences from other more experienced adjusters.   Join some web site forums and ask other adjusters who the good companies are.   Check with the Secretary of State’s office in the state the CAT firm resides to see if they are in good standing as a corporation.    

The best way to check out a CAT firm is to ask seasoned adjusters on portal website forums.   Trust what they tell you,  its better information than no information at all. 

Watch out for CAT firms!  Most are good, but try not to get so absorbed in deployment, that you forget to tend to the basics of being a good business professional.   

Any truly good company would have no problem at all allowing you time to review a contract prior to deployment, and any truly good company would invite any questions you may have about their structure, their officers, and how long they have been in business.  

One more time:  MOST ARE GOOD AND HONEST. 

Donny Greer
Donny Greer of GulfStates Insurance Training at University of North Texas 

*************

Our Blog continued below:

Don’t go out their “reelin’ with the feelin’ and a movin’ and a groovin’ with your excitement at obtaining placement on a roster or receiving new assignments without getting this most important document finalized.

Already this year we are hearing from adjusters receiving independent contracts faxed or emailed to them that contain “blanks” in the contract forms for important things such as fee splits, holdbacks, etc.  We have reports from one group of adjusters attending recent seminars for carrier certifications that could not find one person in the adjusting firm office or at the conference that even knew who signed contracts for their firm nor could the adjusters get copies back signed by an AUTHORIZED person with the adjusting firm. The firm had no idea where they were filed and they were not with the adjuster’s personnel records they sent in.  We have other adjusters being told ” that’s ok on the blanks- we’ll fill those in later”.    Now what does that tell you? Hello????????

One of the concerning contract terms in many of this year’s contracts concerns fines assessed back to the adjuster. We haven’t seen any yet that spelled out what exactly those fines were or the dollar amounts involved although I’ve heard there are some out there with specifics. The Citizens FL RFP manual for the adjusting firms does outline the many $1,000 fines to be assessed to adjusting firms yet the companion independent contracts the selected vendors have that we have viewed only indicated “any fines assessed will be passed on to the adjuster” type clauses. You need to have specifics in writing.

How about the non compete clauses? We saw one firm’s contract last year that didn’t allow adjusters to work for any other adjusting firm in the Southeast USA for 2 years! You need to check with your attorney regarding the validity of such non compete clauses in your state. I see many postings from adjusters giving advice about those “not holding up” in court. We’ll see. I’m monitoring the development of a suit file right now over in Alabama that was recently filed in June and we’ll link to it as things develop beyond the initial complaint and answers as well as searching for other cases involving adjusters and adjusting firms. We welcome any links if you are aware of any others.Don’t believe that the firms won’t enforce them! They are there for a reason and you need to abide by these contract agreements you sign.

We are looking for a good employment contract attorney willing to volunteer some time to look at a few of the examples of contracts we have to provide some general advice to adjusters if you know of anyone interested.  We’ll post their advice and links to their services both here on our blog and in the ClaimSmentor forums.  We are seeing simple contracts about 2 pages long to hearing reports of some in excess of 18 pages long. BE CAREFUL about what you are signing.

We recommend you seriously consider these terms in contracts and consider running all contracts by your attorney. I am not an advocate of “forum advice” posts being your sole venue of information on something so important as an independent contract. In my never ceasing quest to get insurance carriers and state insurance departments to help protect adjusters, I’d like to suggest if they aren’t doing so that carriers exam the independent contracts that adjusting firms give to their adjusters. It is not enough that the carrier sign a contract with the adjusting firm outlining their expectations but they should get involved in making sure that independents are not being taken advantage of in the independent contracts with the adjusters. Is it the “employee” versus “independent issue” keeping them from doing so? If so, state Insurance Departments need to establish acceptable standards for acceptable terms adjusting firms can use and have a published area on all state insurance department sites that list adjusting firms and their complaint ratios just as they do for consumers to determine what a carrier’s complaint ratio is before buying an insurance policy. I have a real problem with the fact a carrier has first hand knowledge of firms they have fired for poor claim service yet where do they publish that information for other carriers to avoid using them or for adjusters protection in accepting assignments for such a firm? They would fear being sued I’m sure but if the Department of Insurance required this they’d have to report it. I cannot stress enough we need to improve the communication gaps in the independent adjusting community for the protection and preservation of our careers.

Effective dates, Hold Harmless terms, Fee Schedules, Fee Splits, Payment terms (before or after carrier pays?), Witholding provisions(how much they withhold as well as how long), Non Compete Clauses, Venue (City/State/Court?)for where any disputes are handled, Other provisions such as Arbitration of Disputes, Fines to be assessed to you, information on who provides the Errors and Omissions Coverage, and many other important terms.. Seek your attorney’s advice BEFORE signing such provisions if you are in doubt.

We have many adjusters who sign contracts but then do not ask for a copy of the contract back after an AUTHORIZED person with the firm has signed it. We had a large group of over 30 adjusters working for one firm in 05 who could not pursue legal action for non payment on over 90 days of work as they had never gotten back a signed copy of their contracts showing any agreements between them and the adjusting firm. ASK for a copy of the Independent contract up front before you leave home as Donny points out above. If the vendor tells you they will sign them at the induction center, make sure you have two original copies with you and sign both and request they sign both and take one with you and keep it in a safe place in case you need it later. This will help you  avoid running into those situations where the “gathering” place has no facilities or staff to give you a copy on the spot.

Don’t assume because it is a large well established adjusting firm that you are safe signing their contracts. We have reports from several adjusters that contracts they assigned with a large vendor signed for Katrina duty contained 60% fee split agreements yet the payments received were 40% and they were then told that the 60% only applied to experienced adjusters. I’m curious if this would hold up in court since the fill in the blank could be twisted on the 60/40..is that 60 to you or 60 to the adjusting firm….we don’t know if it’s not specified in the contract right? Folks, that is not what their contract said. Make sure the fee split does apply to YOU and not termed “in general fee splits are….”.

Go movin’ and a groovin’ this storm season with the comfort of knowing you are protected if you encounter one of the tough situations with a non paying adjusting firm. Splishin’ and a Splashin’ just isn’t the way to handle business contracts professionally! Put those “dancin’ shoes on” AFTER you have properly prepared for accepting new assignments! We hope you will pass the word on to other new adjusters so they don’t go “takin’ a bath” this season!

FAQ and Current Job Opportunity Info/Catastrophe Roster opportunities August 2007

Update 9/13/07- Here is a link to our latest Job Opportunity classified ad.

Below is our latest ad for roster candidates and for adjusters wishing consideration for upcoming catastrophe and daily claim assignments. We mass mailed those on our rosters the past two days. We had several (30 or so) emails bounce back due to out of date emails so we are posting the information here for those viewing our site. Please send us an updated resume with your new email address if you did not receive our recent mailing and know you’d previously submitted your records for consideration. We are also updating all of our records and request those who have submitted a resume longer than 6 months ago send updated information. Thank you.

Since we moved to this new blog, our old FAQ posting is no longer up. Just to be sure everyone understands our process this is our normal routine:

1) We handle staffing requests received from independent adjusting firms for catastrophe and daily adjuster assignments. We also handle carrier requests for permanent staff adjusters for carrier operations. Once a staffing request is received, we sign a contract with the adjusting firm and/or carrier to solidify the staffing request whether it be a one time request for placement candidates or time sensitive requests throughout the year as new needs arise for them. Some firms use us exclusively to handle all requests while we work with others side by side to compliment their own firms staffing as we have access to candidates they may have difficulty finding as we advertise on many boards constantly that many cat vendors do not utilize. We do not conduct the background checks at this time for these firms. Our contract is clear that all background checks and credit checks are handled by the requesting client to keep our costs extremely reasonable for them. Our services can range from anything as simple as mass mailing their offers for seminars and job openings all the way to extensive services up through induction center activities for our arriving adjusters at their operations.

2) We do NOT charge a fee to our adjuster and management candidates. All fees to Dimechimes Corporation are paid by the adjusting firm or carrier. To their advantage, we do not charge them a portion of your earnings on the fee schedule. We charge a one time flat fee at the time they sign a contract with you. We are one of the only firms we know of that provides a guarantee on our candidates providing them a replacement should they not be satisfied with a candidate we submit.

3) Once we receive a staffing request, we notify the adjusters and managers on our roster lists so they can consider the opportunity and have first option. We will also post on job opportunity boards such as Greatinsurancejobs.com and Claims-Portal.com and CADO from time to time to refresh our candidate lists but prefer personal relationships with those who submit resumes to our firm as first priority. Note that we will obtain a copy of the adjusting firms independent contract and fee schedule at the time of the staffing request so you may consider the opening once we have confirmed you meet their qualification requirements. We have them tell us how many years of experience they require and what software and carrier certifications you must have with each staffing request.

In our first year, we did learn a tough lesson that alot of firms would make staffing requests only for roster building purposes. Thus, we no longer handle such requests requiring a security deposit on staffing requests to document the seriousness of their intent to contact and utilize our candidates which should help everyone on our rosters understand the postings are genuine. We had a few cases where vendors would solicit our services then take months to contact the candidates and/or later change their mind regarding opening a slot in a given territory leaving us and our candidates waiting for information. We hope to avoid any of those chances in the future and have seen improved more prompt results with our new processes during late 06 and 07.

4) Should a candidate be interested in our opportunities, they should refer to the Opportunities tab on our website at to be sure they include all information we need to submit them as a candidate. Remember we are a staffing firm and we must pass your information along to others.

5) Once we review the list of candidates who have expressed interest in our openings, we will go through their resumes and select the candidates best meeting the staffing request for consideration by the vendor managers. They will notify us who they are interested in interviewing. We do ask that they contact you back within 2 weeks of our submission for preliminary interviews. The process time is normally much quicker for catastrophe requests than daily or staff opportunities.

6) Upon selection of the candidates to be offered independent assignments and contracts, the vendor notifies us for our invoicing purposes. We ask that adjusters selected also notify us immediately upon receiving assignments.

7) We do ask our candidates in exchange for our free services to them that they not refer other adjusters/managers to the vendors as this would circumvent our staffing firm fees. Should you have others interested in these opportunities, please have them submit the required resume and references to us  and let us know you referred them.

If you ask why use Dimechimes Corporation? We do not require exclusive contracts with us. We can enhance your opportunities by alerting you of new opportunities vendors share with us. There is no obligation to accept these positions. You will be notified of the vendor or carrier involved BEFORE we are submitting your resume/references to them for consideration in the event you have a conflict with that firm and do not wish to proceed further in the candidate selection process for that company.

9) The independent contract you sign is between you and the adjusting firm. They issue all payments to you. While we would not staff for a firm known to have a negative reputation in the adjusting community, it is just as difficult for us to locate information about various firms as it is for adjusters. It is up to each adjuster/manager to do their own research on vendor feedback and reputation as your contract will be handled based on your own investigation on these firms. We will share with you what we do know if you are considering a position they have to offer which we are staffing for.

10) If you have not signed an exclusive contract with the adjusting firm, we will continue to keep you on our rosters so you will be aware of additional openings. Many times, independent firms do not have enough work to keep you busy full time and do not mind your handling additional claims for other vendors. If you have signed an exclusive contract, you can simply ask that we place any further referrals for you on hold then let us know when you wish to become active on our rosters again.

11) We staff for independent and staff positions only. We do not staff for public adjusting firms but there are numerous sources you can check on the web if you are a public adjuster looking for assignments.

12) At this time, we do not share our Dimechimes Corporation staffing rosters with ANY firms. They only receive the resumes from those who have confirmed an interest in a particular job opening. Should we later decide to have open roster services, you would be emailed to express or reject  interest in participation in that type of service as we will not post your resumes for others to see without your agreement to do so as we understand you do not wish to destroy relationships with vendors you may be servicing at this time.

The participants at ClaimSmentor ,which is our online community for adjusters, claim managers, adjusting firm hr staff,etc do have an open roster which participants choose whether or not to participate on. In that case, vendors participating on that site can view those participants resumes. This includes many vendors we do not staff for who would receive exposure to your resume. The registration information and all resume records for ClaimSmentor participants are seperate from those at our staffing firm so you would need to apply to ClaimSmentor should you also wish to join there. Dimechimes Corporation is the founder and sponsor of ClaimSmentor but records between the two operations are not shared. We have hundreds/thousands of adjusters participating on the Dimechimes staffing firm rosters who are not participants at ClaimSmentor.

Feel free to contact us anytime you have additional questions. You can also feel free to post questions of a general nature in reply to this blog entry and we will reply in this forum blog.

Here is our latest job posting found  at www.Claims-Portal.com:

Independent Adjuster and Independent Claim Managers needed now

Dimechimes Corporation, a nationwide Claim Recruiting and Staffing firm provides assistance to Independent Adjusting Firms and to Carriers for permanent staff adjuster job opportunities. All fees are paid by the Adjusting firm or Carrier with no charge to our candidates.We have current openings in August 2007 for the following:Independent Aviation Claim Manager-includes salary,bonus commissions, and fee schedule assignment potential. Candidate must have experienced marketing adjusting firms to carriers.Independent Yacht/Marine Claim Manager-includes salary,bonus,commissions, and fee schedule potential. Candidate must also have experience marketing adjusting firms to carriers.Marine Adjusters with a minimum of 3 years of experienceAviation Adjusters with a minimum of 3 years of experienceCatastrophe Adjusters to work Citizens FL claims with 2 years of experience minimum required Independent Adjusters to work Daily claim assignments- new opportunities regularly nationwide Two Claim Sales Marketing Manager opportunities- Must have prior established marketing experience to work as liason between adjusting firms and carrier executives. Catastrophe Adjusters with a minimum of two years experience to work miscellaneous assignments through vendors during 2007 Hurricane Season. We have specific information we require to consider candidates. Those requirements are listed here: Resumes for qualified candidates only are welcome to Debbie@Dimechimes.com. Stop by and visit our newly launched Adjuster information blog today at www.dimechimes.wordpress.com

Here is a copy of the mass emailing to those on our rosters:

To:  Dimechimes Roster Candidates

Re: Current Job Opportunities

Visit our newest ad at www.Claims-Portal.com here http://www.claims-portal.com/clps/clitem.cfm?adsid=223 listing current opportunities

Our most pressing needs include:

Marine Yacht Division Claim Manager to handle carrier market for adjusting firm as well as manage marine adjusters. Position pays salary, bonus commissions for business brought into the firm and fee schedule claim handling assignments. This is a new marine division you will be establishing for a major vendor. Minimum 3 years of experience. We are also looking for experienced marine adjusters.

Aviation Division Claim Manager- same as marine division with the exception this requires an Aviation claim background of 3 years minimum. We are also looking for experienced aviation adjusters.

Two Claim Marketing Manager job opportunities. Must have prior experience handling adjusting firm marketing directly with carrier executive level operations. Pay includes salary plus commission.

All other opportunities are also listed on the job opportunity link above.

We look forward to hearing back from you should you qualify for these opportunities. We will continue to notify you as new opportunities become available. Just let us know should you wish to be removed from our roster mailing lists. If you have received this more than once, it would be due to the fact we have you listed on multiple rosters meeting your background so we apologize should this create concerns from your end.

Other information adjuster information in the news:

Visit our new Adjuster Information Blog at www.dimechimes.wordpress.com

Have you seen the new 8/1/07 Citizens information to the task force on new adjuster training initiatives? It’s linked to in our 8/9/07 blog entry for you.

Best Regards,

Deborah Moroy,AIC,IIA

Dimechimes Corporation

www.dimechimes.wordpress.com

Cool items to add to your comprehensive adjuster equipment/gear lists!

We follow some of the new adjuster cool tools and equipment/clothing options and here are a few of our favorites this quarter! Check them out!

This is my newest discovery from Neat Receipts which has very small scanners to scan in documents and receipts as well as a business card scanner to keep up with all of your contacts made out in the field! They advertise they weigh in at about 1 lb. Adjusters know how hard it is to pack up all of your important gear and equipment for field appointments. What a great option for catastrophe duty or any field assignments while dealing with insureds replacement cost receipts, contractor estimates and much more! We all meet alot of wonderful contacts out on assignment but what a chore keeping up with their business cards when you travel for a living! There is a business card scanner you can also keep with you. If anyone knows of alternatives at a lower price, let us know about them and we’ll pass the word! These look like much needed time saving devices to aid you in quicker closings rather than having to wait for an insured to copy documents and mail them in to the office as well.

How about these laser glasses for those of you using disto and other laser measuring devices? We’ve read all kinds of tips in forums for adjusters to see the laser measurements outdoors but what a great option these reasonably priced laser glasses would be at $12.95! Here is a link- just scroll down to find the red and green glasses options!

Cat adjuster clothing is always a challenge and one of our senior adjusters especially recommends these Gall brand pants ( Tachtical T-111) for field adjusters. They look fantastic. He reports they use them exclusively due to the multitude of deep pockets and the option to insert knee pads which they find great for roof damage inspections. We ordered the catalog which is free and there were many other great things in the catalog that would interest adjusters! I can’t imagine any carrier or adjusting firm who wouldn’t approve of these pants in the “khaki pants” requirement! We’ll show you some links to several carrier dress code policies in another blog down the road.

Ladder safety is a constant concern to field adjusters as we learn of new cases each season when an adjuster falls off of a roof. I just love this product Safe-T Ladder by Guardian. We had an adjuster test one out when Guardian sent us one to sample under our ClaimSmentor Roving Reporter program where we evaluate products and seminars through donations made to our site. This product received glowing reviews from our evaluating adjuster. Should you have a product, book, or training class you wish  to donate for evaluation in our forums by one of our volunteer participating adjusters, just contact us at  ClaimSmentor.

Have a great weekend everyone. We may have few additional lazy weekends ahead as we get closer to the peak of hurricane season.