Citizens Claims Committee Meeting Report: October 10

The Citizens Property Insurance Corporation Claims Committee Meeting was held by teleconference on Friday, October 10, 2008. After approval of the prior meeting’s minutes, the following items were discussed:

Review of IA RFP #08-0016–Rebid for Independent Adjusters for Non-Catastrophic and Catastrophic Claims

RFP #08-0016-Rebid is a Request For Proposals for Independent Adjusters for Non-Catastrophic and Catastrophic Claims. Mark Castillo of Citizens’ Legal Office reminded the participants that the period of active solicitation for this RFP is still in effect. Therefore, no discussion about the RFP should occur during any public meeting.

Yong Gilroy provided a timeline for the RFP. The RFP was finalized for rebid on September 17, 2008. Questions were then accepted from Independent Adjuster firms, and answers to all received questions were supplied by October 3, 2008. The RFP is scheduled to be finished on October 17, 2008, with any amended items to the RFP posted by end of business on that date. After proposals are received, the proposals will be subject to a scoring process. Around the first of December 2008, the results of the scoring process will be made public. Additionally, the results of the scoring process will be presented at the Board of Governors meeting on December 12, 2008.

Claims School

Dawn Sexton provided an update on the progress of Citizens’ Claims School, the first session of which was held on March 31, 2008. As of August 31, 2008, all 130 of current Citizens’ staff had completed the school.

Feedback from these sessions has been positive and constructive. As a result of the feedback, the school will be expanded from eight days to two weeks, and will expand the curriculum, such as the technical, policy, and corporate training portions.

Ms. Sexton clarified that the School was provided exclusively for Citizens’ Staff, and not independent adjusters. The “Train-the-Trainers” program provides education for trainers who hold the training sessions for the independent adjusters. Only independent adjusters certified by Citizens may attend these sessions; however, no continuing education credits are provided for the adjusters who attend the training.

While the training is currently only provided for the catastrophe pool adjusters, beginning first quarter 2009, training will also be provided for the daily claims adjusters.

Currently the Claims School provides training on the policy forms that were approved for use in June 2008 for new policies, and in August 2008 for renewal policies. In November 2008, training will begin on the new wind only forms.

Citizens’ Staff has attended the training sessions to ensure quality training was provided.

Catastrophe Update

Mike Schwartz provided a catastrophe update for Tropical Storm Fay as of October 9, 2008. To date, 4,345 claims have been submitted, 270 claims are still open, and 214 claims have been re-opened mainly due to differences between the original estimate and the contractor’s estimate, or the subsequent receipt of personal property inventories.

Approximately 12 new claims are still being received per day. However, due to the decrease in the number of claims, the staff has been reduced to eight desk and seven field adjusters.

Initially, approximately 350 to 360 catastrophe adjusters were deployed to Charlotte County based upon the policy count of approximately 400,000 policies in the area and the prediction that the storm would make landfall as a Category One hurricane. Reductions were made to the number of adjusters deployed as quickly as possible after the damage was assessed.

Committee member Carol Everhart questioned how many flood claim declinations were made, as well as the average dollar amount of settled claims. Mr. Schwarz said he would research these statistics and report back to the Committee.

New Business

Committee Chairperson Earl Horton, Jr. called for any new business, prompting a discussion regarding a previously-requested review of the decision to discontinue the Adjust-Your-Own (AYO) program. Mr. Gilroy indicated he would review the program and the decision to discontinue it and report back to the Committee at the next meeting. Also, Mr. Gilroy indicated he would provide an update at the next meeting regarding the progress of several key performance indicators.

There being no further new business, the meeting was adjourned.

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

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