New Hampshire Insurance Department Clarifies Virtual Claims Adjustment Obligations for Insurers
New Hampshire Insurance Department Clarifies Virtual Claims Adjustment Guidelines
Concord, NH — The New Hampshire Insurance Department (NHID) has issued a crucial bulletin outlining insurers’ responsibilities when utilizing virtual claims adjustment systems for assessing automobile damage. This guidance comes as more insurers turn to photo and video submissions from consumers and repair shops, moving away from traditional in-person inspections.
In a press release, the NHID emphasized that under the Unfair Claims Settlement Practices (UCSP) provisions of the state’s Unfair Insurance Trade Practices law (RSA 417:4, XV), insurers must promptly and reasonably investigate and settle claims once liability is established. While virtual adjustment tools can expedite claims processing and reduce costs, the NHID warns that photographs and videos may not fully capture the extent of vehicle damage.
Key Takeaways from the Bulletin
The bulletin specifies that if a consumer requests an in-person inspection of a damaged vehicle, insurers are obligated to accommodate this request within a reasonable timeframe. Insurers cannot deny such requests solely based on a consumer’s previous participation in a virtual assessment. Furthermore, unreasonable delays in providing these inspections may violate the duty to promptly investigate claims, as outlined in RSA 417:4, XV(a)(3).
Aerial Imagery Guidance
This latest guidance follows the NHID’s February bulletin addressing insurers’ use of aerial imagery in property insurance underwriting. The department received complaints indicating that some property insurers relied on aerial imagery to justify non-renewals based on inaccurately identified roof conditions. The February bulletin clarified that while insurers can refuse to write or renew policies due to clear evidence of property damage, they cannot do so based solely on cosmetic issues like roof discoloration. If aerial imagery does not conclusively demonstrate significant roof degradation, insurers must conduct a follow-up physical inspection.
The Future of Claims Adjustment
As technology continues to evolve, the NHID’s clarifications aim to ensure that consumers’ rights are protected while allowing insurers to leverage innovative tools for efficiency. With the rise of virtual assessments, the department’s guidance serves as a reminder that thorough investigations remain paramount in the claims process.
For consumers navigating the complexities of insurance claims, understanding these guidelines is essential. The NHID encourages individuals to stay informed and advocate for their rights when dealing with insurers.
Tags: Auto, Claims, Underwriting, Tech, Property
