We should strive to be honest in our opinions, give credit where it depends and be fair and balanced when making observations. Two pages to a story often occur and an underlying silent story about why things go wrong usually lurks in a larger investigation. Unlike the Lexington Insurance Company, which I announced a week ago in, Lexington Slow-Pays Claims and Ignores Policyholders GEICO Marine Insurance receives applause for adjusting a claim in a well-executed manner when things could have gone terribly wrong.
Twelve years ago I wrote, Fair And Balanced :
No one calls my office and tells me what a great job their adjusters have done to maximize their recovery quickly. Why would they do that? Risk managers, property managers, insurance agents, lawyers, public representatives and policyholders usually call our company because they need help with delay or rejection. Their stories usually have derogatory but colorful language that describes the insurance company's representatives.
Last week, Citizens Property Insurance Corporation's Advocate General and Deputy General Counsel met with me about a number of claims. At the time, I knew that my blog about the latest complaints about Citizens and TWIA would be published. I told them about the complaints. They seemed confused. They expressed their conviction that the recent change in claims management had been very positive and a good step towards improving citizens. I promised to send them examples of our results so that we could determine if what I heard from others was correct.
The point is that my opinions are largely shaped by the views of an upset or incorrect policyholder. My livelihood is to represent them. My most important daily activities try to figure out how to prove that insurance companies act in bad faith and why our company's customers are entitled to more money.
Comments on this blog are often "atta boy" cheers from policyholders and colleagues. when I write about or reveal cases of negligence from insurance companies. Sometimes my colleagues criticize my comments about the insurers' good business or when I have empathy for an insurer's point of view. I'm sure these cheers and cheers have some impact on my opinion.
Pictured above is Rick Wilson, CEO of GEICO Marine. He is obviously a dedicated leader based on his background. He has certifications such as CPCU and AIC from The Institutes. This is what GEICO Marine has to say about him:
As Vice President of GEICO Marine Insurance Claims, Rick oversees the day ̵1; to – day operations of our busy claims department.
With more than 20 years of experience in marine care industry claims, Rick provides extensive knowledge of the nuances and challenges of dealing with complex boat losses and disaster recovery. After joining the BoatUS Claims team as a trainee in 1991, Rick spent many years as an adjuster to quickly dismantle large and small demands before finally becoming Vice President of the department's responsibilities and special programs. After serving as head of the BoatUS Catastrophe (CAT) Field Team, Rick has been zero due to many of the country's most notable hurricanes, sending teams and directing large-scale recovery operations at a moment's notice.
As the latest member of GEICO Marine Insurance, Rick provides strong leadership, vision and of course a lifelong love of boating! An avid boatman since childhood, Rick spent much of his early years sailing and racing along northern Chesapeake Bay with his family; a pastime he quickly recounts has since been replaced by football matches and swimming meetings for his two children.
The silent underlying story of claims usually begins at the top. Leaders make demands on culture and education. They determine how injury adjusters are stimulated for their work. Claims manager decides whether the message and motivation is to reduce claims costs and reduce the degree of difficulty or fair and immediately get claims paid out so that the customer fully receives all available benefits.
Everyone knows I have a passion for water. I own four racing sailboats and a 52 & # 39; floating cocktail party motorboat. My 32-foot racing sailboat is Chip & # 39; s All In! and is located in a dry ridge at the Davis Island Yacht Club. Two summers ago, a thunderstorm hit sailboats on both sides of Chip & # 39; s All In! They got holes in their structures and black sting from the severe lightning strike. I thought the Almighty had looked at me again for Chips All In! looked perfect … … or so it seems.
When the autumn racing season began, we could never get our navigation equipment to synchronize or function properly. We ran a number of regattas and finally gave up receiving incorrect numbers. We then sailed with a simple digital compass until we could find out why we could not get the nice navigation equipment for yacht racing to work. Eventually, Brian Malone from North Sails suggested that we might not be so lucky and that the electronic equipment had been damaged by lightning and electric current. There seemed to be no other explanation.
How many claims have I represented policyholders claiming that their electrical equipment did not work properly after a lightning strike? Stupid me for not thinking about this possibility. So the report was reported late from the loss date and not exactly quickly even after we assumed what could have happened. I kept wondering if I would have to defeat another excuse for not paying due to late notice.
GEICO Marine Inspector responded immediately and arrived at the boat. He received information about the rest of the boats that were damaged and gave lots of pictures about the seriousness of the strike. He contacted the installer of electric racing equipment about the problems and at the same time began to evaluate the damage. The claim was paid fairly and quickly. No hassle. I can only assume that it reflects how Rick Wilson and the leaders at GEICO Marine want their customers to be treated and claims handled. Good going GEICO Marine!
However, I started getting answers about Lexington and its parent company AIG as soon as I published the blog about Lexington last week. An assertion expert report provided in part:
43. Providing an ownership relationship to the company's successful profitability may be appropriate in some insurance companies' departments, such as insurance or sales, but it is contrary to a claims department. Claims department employees should not be given any direct compensation based on the company's profitability. Still, that's what AIG has done. Payment of shares to AIG branch staff has been confirmed (See deposit by Andrew Barnikel, Moses Taylor Hospital, Inc., et al. Vs. Chamberlin & Reinheimer Insurance, et al. Law Court, Lackawanna Cty., PA , Civ. Action No. 05-CV-4563 [hereinafter[ Moses Taylor ”] p. 108; and see American International Group, Inc., 2013 Short-Term Incentive Plan
44. AIG has also set up incorrect For a period of several years, AIG has set annual targets for the reduction of damages for its claims managers (See deposit by Andrew Barnikel, in Moses Taylor pp. 104–107). artificial claims distort the claims settlement process by providing incentives for claimants to try to pay less than what is owed to claims in order to meet the artificial objectives.
45. Furthermore, the significant delays in dealing with the disputed claims would is also contributing to AIG's profits. It is well known that delays in the payment of insurance claims benefit insurers.
It is important to acknowledge that AIG Claims Services and AIG Claims Technical are doing the job of Lexington's handling of damages. An unfaithful lawsuit against me claimed that AIG should be the real party to the interest because AIG's subsidiaries do all the damage for Lexington:
AIG specifically operates at least two non – life insurance companies that handle claims from its subsidiaries. These two claims companies are AIG Claims Services, Inc. and AIG Technical Services, Inc. The latter company is the AIG company which handled the plaintiff's insurance claim, which gives rise to this lawsuit.
Although the defendant Lexington cannot deny this fact, the plaintiff will still attach an exhibition from AIG's website which reflects the existence of its two non – life insurance companies acting on behalf of its wholly owned subsidiaries, including Lexington Insurance Company. As the document reflects, AIG Technical Services, Inc. “is responsible for special claims and dispute resolution.
I teach Merlin Law Group attorneys to examine what the insurance company's executives say about their claims philosophy through speeches, presentations and under oath in previous provisions. The best presentations are the internal ones where the claims management reports on its claims initiatives and provides guidance on the results expected from the claims department. A good place to start research is on the internet. Here's what Lexington says about its management philosophy on its website:
Important for the insurance purchasing decision is our commitment to deliver fast, skilled and knowledgeable compensation service that meets our customers' unique needs – whenever and wherever a loss occurs. Exceptional damages service does not happen by mistake. It takes many years of experience and organization-wide commitment to build a customer-focused claims network, committed to service knowledge and continuous improvement to better serve our customers.
At AIG, our experienced teams allow claims to be managed by leveraging local, first-hand knowledge of risks, forms, business practices, legal and regulatory issues. We offer dedicated resources to ensure consistency in claims handling, efficient management and winning claims strategies. Finally, the financial capacity of our insurers offers the security of long-term stability. We will be here to pay receivables tomorrow and for years to come.
I think the last three words of the last sentence speak volumes for when policyholders in Lexington can expect to be paid.
Thought for the day
If you live a life of make-believe, your life is not worth anything until you do something that challenges your reality. And for me, sailing the open sea is a real challenge, because it is life or death.
– Morgan Freeman