Proper Training Can Help Avoid Many Problems
(Note: This Guest Blog is by Corey Harris, an attorney with Merlin Law Group in the Tampa, Florida, office. This is part of a series he is writing on post-loss duties).
Over the past few weeks I have written about the necessity of mitigation and the potential consequences of not doing so. Two weeks ago in Consequences of a Policyholder's Faiiure to Mitigate, I wrote that it was important for policyholders to obtain help from experienced professionals in the event of a large loss. While my list of potential professionals was not intended to be all-inclusive, a comment reminded me that I failed to mention that policyholders could call their agent or carrier directly if they had any questions about what was required under the policy.
This comment was absolutely correct. Many agents and carrier representatives are knowledgeable and capable of guiding an insured through the basic requirements of mitigation, and with a smaller loss that might be all that is necessary.
Unfortunately, as I mentioned in last week’s post, An Insurer’s Actions May Excuse Mitigation Requirements, many times we run across individuals who may lack some of the fundamental knowledge necessary to guide a policyholder through the maze of provisions included in a policy. A comment that I have been mulling over for the past week is this:
Your article only serves to reinforce my continuing comment that education is sorely lacking if an adjuster working for a carrier makes that type of inane comment. Even a rookie should not make such a stupid comment. I guess this situation is like manna from heaven for litigators it however illustrates the industry wide lack of commitment to properly educating claims personnel. With the disappearance of veterans from the field this is unfortunately what the future looks like.
I guess this comment stuck in my head because, even though I recently found a grey hair, I am part of the generation which will attempt to carry this field into the future. I have been extremely blessed to have had the opportunity to learn so much from so many people over the past years, but I understand that not everyone is so fortunate.
While the point of my post last week was to explain how carriers could be estopped from asserting a mitigation defense if its actions cause the insured to not properly protect the property, it definitely highlights the fact that there is a lack of training and education out there. As the comment says, the veterans are beginning to disappear, and, many times, new adjusters are thrown into the mix before they are ready.
While the ideal situation would be for everyone in the industry to have an experienced mentor to show them the way, the reality is that this is not feasible. Therefore, it is important for people who are new to the industry to completely immerse themselves and learn something new at every opportunity.
I recently ran across the following post on Dimechimes:
We receive hundreds of emails yearly if not monthly from new adjusters specifying they now have their adjuster’s license and are ready to go as they look for independent adjuster assignments. Many will have great backgrounds in construction, auto repair backgrounds, insurance agency, and other related fields.
What they do not have that they do not understand is a grasp on the functional essentials to properly adjust a claim. They may have learned state ethics requirements for adjusters, some basic policy to pass the adjuster’s license exam, but little regarding practical file requirements, carrier claim handling guidelines, forms required, proper communication tools and appropriate forms of communication.
If you think you are ready…try taking this self assessment and see how many questions you are comfortable with before you go out on assignments and see if you are ready!
Whether you take our 50 Hour Fundamentals of Claims Class or obtain training elsewhere, please do not go out on assignments without taking much needed training from PROFESSIONAL sources.
The post goes on to provide a 125 question test to help new adjusters determine if they are “ready for action.” While the test is intended for independent adjusters, I think it is helpful for public adjusters, attorneys, and agents as well. To succeed in this business, you need to understand all of the different parts, and finding the answers to these questions is a great place to start.
You can find the Dimechimes post and test here.
The reason there are hundreds of"newbies" flooding the adjusting profession(pardon the pun) is because of the very lax licensing rules. Would you feel very comfortable being serviced by any other type of "advisor, consultant or professional" with three days training focused mainly on giving you the answers to the exam questions.What is needed is a "degree" in insurance adjusting. In some countries such as Canada you can take a 2 year college degree in adjusting and it is in fact a prerequisite to being licensed as an adjuster.This is followed by a four step graduated licensing system which ensures continuing education and experience requirements. When the financial viability of individuals and business is at stake why should so much less be acceptable????
The comments by Insurance Vet are spot on. The states have been using the lax licensing rules as a revenue generator.
In the 1970's Texas had requirements for each line of the license. 40 hours for property, 40 hours for casualty, 40 hours for workmens comp and so on. In order to have the all lines license you had to have 240 hours of training. Texas did not issue just a property adjuster license. It was about 120 hours for the property, casualty and auto license. Now it is a three day "school" with a money back if you do not pass the license test. Florida has gone to the intern for pa's and should go to that for all new adjusters. What good is someone if they do not have any mentoring/on the job training under the control of someone already trained and licensed? Other careers have had this for some time and it is time for all states to do this in the adjusting field. At least 120 hours would show that someone was seriously considering the adjusting field instead of a get rich proposition. We saw this in the pa field in Florida where many got into it as they saw the 10% easy money while they had no idea what the policy said, meant or the first thing about handling a loss.
Would it not be nice to hear from policy holders that the person who inspected and prepared the estimate was knowledgeable, professional and made sure things were in order? That when the carrier called the policy holder was satisfied with the adjustment. Now if license holders were properly trained, the need for clean up would be diminished but the policy holders would be properly taken care of the first time.
Chip,
I very much appreciate the mention and link to my adjuster information blog regarding self assessment.
I'm a big fan of your blog, regularly referring to it for adjuster training.
Thank you.
Debbie
ClaimSmentor Founder
The insurance claims industry offers several career options that will get you wherever you want to go.
Depending on your career path (property, medical, workers comp, etc.), you could interview claimants and witnesses, consult police and hospital records, and inspect damage to determine the extent and the liability (who pays what). Of course, there are different kinds of damage, work styles, and even specialties, so adjuster careers are varied.
There are many training resources to jump start your career in the claims industry today.