What is Bad Faith Adjusting? Is my Insurance Company/Contractor Actingin Bad Faith?

Bad faith adjusting will end your career...

When you are adjusting in bad faith you are intentionally setting the claim up to be fixed (cleaned up) by another adjuster later on down the road.  In other words, you are being lazy!  Bad faith refers to breach of contract when dealing with all involved parties (including contractors) who will assume you are acting in good faith and fair dealing.  Acting in bad faith will end your career and can also put you in jail!

Bad faith involves being dishonest or fraudulent in a claim.  Examples of bad faith claim handling could be:

• Entering into an agreement without any intent of living up to the terms that have been agreed upon. (not fulfilling the contractual obligations to the insured based on what is written in their insurance policy)


• Knowingly misrepresenting the quality of an item you are attempting to settle with the insured.


• Intent to deceive or mislead in order to gain some sort of advantage.


• Failure to thoroughly investigate a claim.


• Failure to promptly investigate the insured's property.
  
  
  
  • Time periods that are deemed acceptable in reference to the above item will be defined in the insurance policy.


• Unreasonably delaying or denying payment.


• Refusing to settle the claim in its entirety. (intentionally providing a "less than fair/reasonable" settlement on an item)

Bad faith is also a two way street.  Insureds (policy holders) and contractors may also be found guilty of acting in bad faith.  It usually involves falsifying information in an attempt to mislead the insurance company.  Yes, this includes eating deductibles!

Sept. 11th 2001 - Hurricane Erin (the hurricane that nobody remembers)

Today is a day of mourning and remembrance for many across the country.  But most have forgotten that there was a hurricane 200 miles east of New York the day that the terrorist attacks took place!  Meteorologists cant even recall this hurricane; because the horrific events of September 11th overshadowed our memories of anything else that happened in the world that day.  If this storm were 200 miles closer to NYC, then flights would have been cancelled and the World Trace Center would not have been attacked...  In the below picture you will find a satellite image of Hurricane Erin on Sept. 11th 2001.  If you look closely, you can see the dust over New York City from the twin towers...

May God continue to bless America!  Never forget to pray for your country, our troops and for your future generations to come!  Let us never forget the tragic events that took place of 9/11/2001...

How to earn quick and easy CE Credits online

So your adjuster state licensing is getting ready to expire and you haven't gotten nearly enough of the required continuing education credits...  Fear not!  There is no need to worry about the $50 per credit hour penalty!  You can easily acquire them in one night if you have a few hours to spare!  In this article I'm going to briefly go over how to quickly and easily earn CE credits by utilizing WebCE online!

All you have to do is go to www.webce.com.  From here click the Course Catalog link.  Then select your resident state from the diagram.  A list of license types will pop-up, choose "Adjuster". If no adjuster option is available then choose "Property & Casualty" (Adjuster and P&C are essentially the same thing anyway).  The following page will show you exactly how many credit hours you will need to fulfill your insurance license obligations.  You can also view your state's specific requirements in the Compliance Requirements section.
WebCE offers discount pricing when you bundle and purchase your CE courses at once.  You can expect to spend roughly $40 - $60 depending on how many credit hours your resident state requires.  Once you are in compliance with your resident state, most of the other states that you hold an adjuster license in will also deem you in compliance.  So the good news is "You don't have to repeat this process for every state you hold an adjuster license in!"  WebCE will also report your earned credits to your state for you.

You will be required to pass an exam once you have reviewed the CE course material.  If your resident state requires an exam proctor then you will need an adjuster buddy to login using their licensing credentials to verify that you did not cheat on the exam... Its a pain, but this is still the quickest, easiest and least expensive way to earn your CE credits!

Would Insurance Cover a Meteorite Strike?

With the near earth asteroid  passing by this afternoon and the meteor that exploded over Russia, a sobering question has arisen that not many people have ever taken into consideration. "Would my homeowners and/or auto insurance cover damage by falling space debris?" It's not something that is typically discussed in many insurance meetings with your agent.  In fact, damage from such an event is extremely rare!



Over 3,000 buildings were damaged in Russia today when a meteorite exploded over the Russian city of Chelyabinsk.  The explosion from the meteor caused a supersonic sound wave that blew out the windows and doors of many buildings in the area.  At least 1,000 people have been reported injured from this event.  Thankfully, nobody has been killed.

The good news is that falling space debris, asteroids, meteorites and even falling satellites are covered under a standard homeowner and business insurance policy!  There is even coverage for your contents/personal property from such an event.  If a meteorite falls on your car, there is also coverage under your auto comprehensive damage endorsement.  You would even be covered in the unfortunate event that a meteor strikes a person.  Liability and life insurance would take effect from that point.

So you can rest assured that your property will be covered in the event of an unlikely meteorite apocalypse. :)

State of Emergency: NY, MA, CT, RI

Winter Storm Nemo is a monster!  And it is only getting worse! (2/8/2013 - 2/9/2013)

The brunt end of the storm is currently in New Jersey and is headed toward Boston fast!  A state of emergency has been issued for many areas of the northeastern US.  Areas of New York, Massachusetts, Connecticut and Rhode Island have all issued travel bans.  If you are in these areas and attempt to travel then you could be issued a hefty ticket.  DO NOT TRAVEL IF YOU ARE IN THESE AREAS!  Remember, you are not only putting your life at risk, but you will also be putting first responders at risk.




Winter Storm Nemo is intensifying and is projected to become worse later on tonight.  Gusts in upwards of 50 mph are being reported.  By 5 or 6am tomorrow (Feb. 9th) the storm will be ending for the western-most areas that have been affected.  Hunker down, Bahston!  It looks like you are going to be taking the brunt of this storm!

Stay safe and God bless!  Click here to FIND more information on Winter Storm NEMO

 

 

EF2 Tornado Ravages Mt. Juliet, TN

Storm reports are still coming in after last nights rare breakout of January tornadoes. As of now it would appear that Tennessee has been hit the hardest, leaving Nashville heavily damaged by strong winds and Mt. Juliet ravaged by an EF2 Tornado. As of now 1 person has been killed. The gentleman who passed away was taking shelter in a shed when a large tree fell on top of the structure. His family, who lives in the house nearby, heard the tree fall around 3:30am and rushed to the mans aid. Unfortunately, he was pronounced dead on the scene. Prayers go out to this family who will be coping with this loss as they clean up from the storm.

Alabama is currently getting hammered by this same storm. The storm is headed northeast, threatening these states along the way. The warm weather streak is going to end and snow is going to move in to take its place. This will make storm cleanup difficult for the folks in TN.

[caption id="attachment_472" align="alignleft" width="650"] severe storm forecast - 1/30/2013[/caption]

Insurance premium paid to defend killer in court

Three years ago, an auto insurance claim had the whole internet in an uproar.  Which is quite uncommon, considering that most people would like nothing to do with the insurance industry.  The story comes from the family of a girl named Katie Fisher, who was killed in a car accident in Maryland.

[caption id="" align="alignleft" width="190"] Katie Fisher - image from the New York Times[/caption]

Katie was determined to be at fault for running a red light.  Katie's policy allowed for up to $100,000.00 of liability coverage.  The motorist that hit her had liability coverage of only $25,000.00.  Katie's parents tried to claim for the full $100,000.00 of liability, but did not receive it.  To receive full liability coverage, the other motorist needs to be at fault.  That is where liability coverage in an automotive accident can become confusing.  Katie's parents are still fighting to prove that she was not at fault for the accident.

So why bring up an old article that had nearly all forms of social media in a blind rage?  I feel it is very important for all of us to remember that insurance is a frustrating and confusing industry.  Most people sign a contract and pay their premiums every month without knowing the full extent of their coverages.  This is why I always remind people to constantly be in touch with their insurance agents! Wither it's automobile or home insurance, it is important to know exactly what perils would cover you.  If you add-on to your home, or purchase a new vehicle; be sure to notify your insurance company ASAP so you will have the proper policy limits!  Also be sure you have proper endorsements added onto your insurance policy.  For example, most people believe all forms of water damage are covered under a standard homeowner policy.  This is a myth!  Homeowners policies will NEVER cover any flood related damages.  So be sure to do your homework and read all of the fine print.  It could leave you seeing red one day...

This information comes from an article that was written by Ron Lieber from the New York Times; and is a very good read!  If you would like to view the full New York Times article, then please click here!

 

5 Important Tips for New Adjusters

So you are brand spanking new to the industry.  You've received all of the training and certification you need to begin adjusting your first batch of claims.  You then get the call from your independent insurance vendor to deploy you to your first storm site and start your exciting new career as an insurance claims adjuster.  What do you do now?  Don't worry!  We've all been there before!  Here are 5 important tips for new insurance claims adjusters:

1.) Show up early!

     When you are deployed to a storm, you are usually given 48 - 72 hours to get to a specific office or building listed by your independent adjusting firm.  It is EXTREMELY IMPORTANT that you show up on time for your first meeting!  Important state adjusting guidelines and regulations will be reviewed during your orientation.  It is a strange new territory for you.  So it's easy to get lost!  Make sure you give yourself enough time to find the building, and navigate your way to the orientation room.  Its usually a good idea to arrive the day/night before your given arrival date.  Take this extra time to scope out the area so you can be sure to show up on time!

2.) Pack enough clothing and equipment to last you for a few months

     Rookies will typically only pack enough clothing to last them for a few weeks.  It is not unusual for an insurance claims adjuster to be on a storm site for several months.  Think of the future weather conditions and pack accordingly.  For example, if you get called out on a storm in late September, pack some long sleeved clothes and a warm jacket; because you might be there when it is snowing!

3.) Book a hotel room ASAP!

     After a large storm event it is not uncommon for hotel rooms to sell out faster than your daughter's concert tickets for Justin Bieber!  Homeowners, utility workers, and other insurance adjusters will be fighting you for a hotel room.  Utilize search engines to find nearby hotels.  The destination that your independent insurance firm gave you will most likely be the office that you will work from; and hand your paperwork in.  Try to find a hotel close to this location at the beginning of the storm.  Once you have a few claims under your belt and you are feeling more confident, then you can search for a hotel closer to where some of your claims will be.  If hotel rooms are all sold out, look on websites like Expedia, Priceline and Hotels.com.  Most hotels will hold back specific rooms in their facilities for these companies exclusively.  So if the hotel you want has been listed as "no vacancy", then you may be able to squeeze in with one of these 3rd party companies.

 4.) Physically introduce yourself to all of your managers!!!!!!

     This goes for your insurance carrier's management and your independent adjusting firm's management.  I CANNOT STRESS TO YOU HOW VALUABLE THIS IS FOR FUTURE RE-DEPLOYMENT OPPORTUNITIES!  Sorry for the CAPS...  But you need to really pay attention to this one!  Your managers are your key to get deployed again in the near future!  If your managers see your face often and know who you are, then they will think of you for future opportunities.  It doesn't matter how much experience you have, YOU MUST DO THIS IF YOU WANT TO CONTINUE WORKING ON A MORE CONSISTENT BASIS!  Make it a habit to go into the office at least every other day and talk with your managers and peers.  This is a great chance for you to learn valuable tips and tricks from experienced adjusters.  Plus it'll prevent you from feeling lonely and homesick during your deployment.  Your co-workers will usually ask the people they know to "extra-curricular activities" during time off (i.e. dinner, beers, and even casino's or other activities popular in the area).

5.) Accept constructive criticism humbly and keep your chin up!

     You are the rookie... There is no getting past that.  Frustrating homeowners and workflows are bound to throw a wrench into your diabolical master plans...  So don't be shocked if everyone and their mom wants to ride along with you for a co-adjust during the duration of your first storm.  Regardless of how much experience you think you have, it is inevitable...  It may seem annoying to some of you, or it may be a God send for some of you who are eager for a security blanket.  Just nod your head and say "Yes sir/ma'am".  Some of the tips and corrections that will be given to you may seem stupid and pointless; however it is important to make a mental attempt to perform these tips/corrections throughout the storm.  The people who co-adjust with you will actively look through your files to see if you are making an attempt to "do what they say".

Storm season starts in less than a month and a half!  Where does the time go?!  So make sure your bags are packed and that you have purchased all of the equipment that you will need!  Give your vehicle a fresh oil change before you head out.  Your vehicle is about to take a lot of miles and abuse, so show it some love!  Good luck to all of you and keep in touch!  Let me know if you have any questions or concerns throughout your deployment. :)

Devin

Winter Storm Gandolf

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While it isn't spelled like Mr. Tolkien's "Gandalf" we'll just roll with it.  If you are working insurance claims in the northern plains, prepare to have a wrench thrown into your operations for awhile!

[caption id="attachment_370" align="aligncenter" width="300"] Gandalf prevents insurance adjusters from "passing"[/caption]

An estimated 46.8 inches of snow fell in the mountains of Idaho!  From Utah to Nebraska and then to Lake Superior, that is one big AOE!  While most of the east coast is enjoying spring like weather, it won't be long lived.  Temperatures are set to head back down to freezing on the right coast... "One does not simply.... have a warm winter."

The NFIP (National Flood Insurance Program) is officially out of money!

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With everyone raving over the fiscal cliff, money has become an extremely hot topic lately.  Everyone in the country seems to be concerned with what the government is doing with their hard earned tax money.  On Friday, congress accepted legislation to increase the borrowing limit to pay for NFIP flood claims from Hurricane Sandy.  This legislation will add $9.7 billion dollars to the nations debt, so the NFIP can continue to pay out claims.  The NFIP has already reached its borrowing cap of $21 billion dollars!  So where will this additional $9.7 billion dollars come from?  It certainly won't come from any federal spending cuts.  The answer is in your wallet... Your taxes are going to pay for the flood program to settle the NFIP's own insurance claims.  This will be a small part of many tax increases that are set to begin in 2013.  The senate passed the measure without any opposition 354 - 67.  The 67 votes to oppose the legislation all came from Republicans, including former vice presidential candidate Paul Ryan.

There are still 100,000 claims awaiting action.  In fact, the House is predicted to approve an additional $51 million in Hurricane Sandy relief on January 15th; which raises the question "When will the spending end?"  It has become clear that the government does not plan on cutting any expenses on their end (i.e. government higher-ups salaries and funding foreign programs).  Which means our debt ceiling only has one place to go, and that is up!  How high will our debt ceiling go before we cannot pull ourselves out of a national crisis?  Or has that time come and gone already?

Sources

The Wall Street Journal

Staten Island NY Local News, Sports & Weather