Minutes of Meeting
Claims Advisory Committee
A meeting of the Claims Advisory Committee was held at the office of Commonwealth Automobile Reinsurers on -
Wednesday, August 27, 1997 at 9:30 A.M.
The following members were present -
Ms. Kathleen DevericksPremier Insurance Company
Mr. Robert Kerton Safety Insurance Company
Ms. Maria WalshPlymouth Rock Assurance Corporation
Mr. Karl Hupfer *Hanover Insurance Company
Ms. Joyce Smith **Commonwealth Mutual Insurance Company
Mr. Dana Marchant Commercial Union Insurance Company
Mr. Arthur Remillard, III.Commerce Insurance Company
Mr. Edward Thompson ***Arbella Mutual Insurance Company
Mr. James MutschlerLiberty Mutual Insurance Company
Mr. Bernard GoldsteinMetropolitan Property & Casualty
Mr. Robert PuopoloAmica Mutual Insurance Company
Mr. Ciro FeiSentry Insurance Company
Mr. Robert D. Woods, Jr.CNA Insurance Companies
Mr. Thomas Raher ****National Grange Mutual Insurance Company
*Substitution for Mr. Fran Delage
**Substitution for Mr. Michael Rowe
***Substitution for Mr. Douglas Jones
****Substitution for Mr. William Garvey
Minutes of MeetingAugust 27, 1997
Claims Advisory CommitteePage 2
Representative Producers -
Mr. James DohertyDoherty Insurance Agency
Mr. Robert McGowanMahoney & Wright Insurance Agency
Also present were -
Mr. William ZukasQuincy Mutual Insurance Company
Ms. Theresa PowersQuincy Mutual Insurance Company
Mr. Joseph HaswellNorfolk & Dedham
Mr. Stephen VeigaDivision of Insurance
C.A.R. Staff -
Ms. Valerie GedziunVice President - Claims
Mr. Robert W. BellClaims Manager
Ms. Susie Almonte WintersClaims Analyst
Mr. Jean LaprimeSenior Claims Examiner
Mr. David PerfettiSenior Claims Examiner
Mr. Brian HayesClaims Examiner
Mr. Claude BourgeoisChief Investigator
C.A.
97.0Minutes of Meeting
Mr. Doherty made a motion to approve the minutes of the Claims Advisory Committee meeting of June 25, 1997. Mr. Marchant seconded and the motion passed unanimously.
C.A.
97.51Performance Standards
Ms. Devericks reported that Section 41 of Chapter 273 of the Acts of 1988 requires that the Performance Standards be reviewed every two years after they were last approved. The last revision to the Standards occurred in 1995.
Minutes of MeetingAugust 27, 1997
Claims Advisory CommitteePage 3
A subcommittee was formed to review the Performance Standards. The subcommittee will consist of Arbella, CNA, Hanover, Premier, and The Doherty Insurance Agency. Hanover will chair the subcommittee. The first meeting will be Tuesday, September 30, 1997 at 9:30 AM.
C.A.
97.64SDIP
Ms. Gedziun stated that at the last Claims Advisory Committee meeting the Committee agreed to continue the discussion of the documentary review procedures at this meeting. She continued by saying that she spoke to Mr. Manny Chaves at the Board of Appeal on Monday, August 25, 1997 and he stated that most of the files are in from the companies and that the companies are doing a good job of submitting them promptly. The Division of Insurance is interested in the reaction to the program and would like to finalize it one way orthe other.
The Committee expressed support for the program and discussed its cost saving benefit. Mr. Doherty then made a motion to recommend to the Division of Insurance that the Documentary Review Procedure should be incorporated into the Board of Appeals Procedures for Surcharge Appeals. Mr. Remillard seconded and the motion passed unanimously.
C.A.
97.35Reinspections
Ms. Devericks reported that a subcommittee has been formed and is charged with looking into the reinspection program with a goal of making suggestions for improvement of the process to the Division of Insurance. The subcommittee will consist of Commonwealth Mutual, Metropolitan, Peoples, Plymouth Rock, and Trust. Commonwealth Mutual will chair the subcommittee.
Discussion centered on the fact that the benefit of reinspections has diminished under the Direct Repair Program. Mr. Goldstein stated that all companies have reinspection programs based on quality control and that some of these could be incorporated into the regulation.
Minutes of MeetingAugust 27, 1997
Claims Advisory CommitteePage 4
C.A.
97.37Special Investigative Unit
Ms. Gedziun reported that the second meeting of the Joint Insurance and Repair Shop Fraud Task Force was held on Thursday, August 7, 1997. Prior to the meeting Assistant Attorney General, Brian Burke, had solicited input from the various members of the task force. As a result of that input working groups have been formed to discuss and make recommendations on seven topics:
1.Direct Repair Program
2.Preinspection Regulations
3.Glass Claims
4.Availability of Claims databases on PD and PIP/BI for sharing information
5.Educating consumers at time of accident on what is fraud
6.Arbitration procedures in Massachusetts Auto Policy
7.Unregistered Repair Shops
C.A.
97.41Automobile Damage Appraisers Licensing Board
Ms. Devericks stated that another subcommittee has been formed to formalize communication with the Appraiser’s Licensing Board and other industry organizations by periodic meetings to discuss issues of common interest. The subcommittee consists of Commerce, CNA, Hanover, Metropolitan, Peoples, Safety, Sentry, and The Doherty Insurance Agency.
Mr. Woods asked the subcommittee if they would be available on Friday, September 12, 1997 at 10:00 AM. They all agreed and the meeting was set.
C.A.
97.42Subrogation Claims
Ms. Gedziun reported that an industry meeting was held to discuss the Subrogation Waiver proposal put forward by Hanover Insurance on Wednesday, August 20, 1997. Several companies attended along with CAR and AIB. Ms. Gedziun went on to say that at the end of the discussion the group agreed that there was some merit to continuing discussion on waiving PIP subrogation. They also agreed that there were too many issues involving physical damage claims and that it could not work under our current system and SDIP regulations.
Minutes of MeetingAugust 27, 1997
Claims Advisory CommitteePage 5
Ms. Gedziun also stated that it was agreed that AIB counsel would investigate the legality of the issue and report the results to the AIB Claims Committee at their next meeting on Wednesday, September 24, 1997.
There being no further business Mr. Doherty made a motion to adjourn. Mr. Marchant seconded and the motion passed unanimously.
The next scheduled Claims Advisory Committee meeting is on October 29, 1997 at 9:30 AM.
Valerie B. Gedziun
Vice President - Claims
Boston, Massachusetts
September 5, 1997