Citizens Claims Committee Reviews 2009 Statistics, 2010 Goals; Increase in Litigation Assignments Noted

 

The Citizens Property Insurance Corporation (“Citizens”) Claims Committee (“Committee”) met on January 27 via teleconference.

Following is a summary of the meeting:

Jay Adams, Citizens’ Director of Catastrophe Operations and Commercial Lines, reported that Citizens successfully tested its catastrophe plan during 2009.  Staffing realignments have contributed to good overall claims handling results.  Goals for 2010 include continued catastrophe planning and stress testing.   Citizens also will be developing a commercial division.  Jeff Handy was announced as the Commercial Assistant Director.

Citizens’ Director of Claims Operations Lance Malcolm reported on non-catastrophe and key performance indicators, noting that during 2009, Citizens reviewed 1,089 closed files, with the goal of enhancing the claims adjusting process.  Citizens had 30,333 new claims and closed 32,716. Pending claims inventory is 4,266. 

A significant increase in litigation assignments was noted from 2008 to 2009.  New sinkhole-related claims continue to increase as well.  Chinese drywall-related claims totaled 33. 

The Committee reviewed various causes of re-opened claims.  Mr. Malcolm noted that a “reason code” is being generated and Citizens is working on developing the database for reopened claims. 

Citizens’ claims process will continue to be evaluated during 2010, along with its closed file review process.  Litigation team managers will likely be hired. 

To access Mr. Malcolm’s report, which provides statistics related to liability, litigation, appraisal and mediation, click here.

Eric Ordway, Citizens’ Director of Vendor Relations, reported on vendor-related activities in 2009, which included the implementation of adjuster contracts and Citizens’ on-line credentialing system.  Mr. Ordway stated that the vendors are operating a performance level of approximately 80 percent.

Mr. Ordway also reviewed a consent agenda item for the procurement of mobile home demolition firms that the Committee voted to submit for Board of Governors’ approval.  Additional pending competitive solicitation contracts include:

• Appraisal firms to support Citizens’ litigation and disputed claims efforts
• Contents inventory and valuation services
• Commercial general adjusters and executive general adjusters
• Other services, such as valuation, temporary living and carpet testing

Director of Shared Services Dawn Sexton reviewed Citizens’ quality assurance and training programs, recovery updates and special investigative unit (“SIU”) investigations. After investigations of open claims nearly tripled from 2008 to 2009, the SIU program is expected to have an enhanced presence in 2010, particularly in South Florida.

Changes in Citizens’ 2009 claims procedures included improving appraisal language and adding recorded statements and examinations under oath of all parties.  Policy changes for 2010 may include areas relating to water damage, tile flooring and tree roots.

Yong Gilroy, Citizens’ Senior Vice President of Claims, echoed Mr. Adams’ report on progress relating to Citizens’ claims processing, catastrophe plan development and the creation of a commercial division.

The meeting concluded following Mr. Gilroy’s report. To access complete meeting materials, click here.

 

Should you have any questions or comments, please contact Colodny Fass.

 

 

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