The New Hampshire Insurance Department (NHID) has issued a new bulletin to clarify how insurance companies should handle virtual claims adjustments for automobile damage. This guidance comes as more insurers are using photos and videos from customers or repair shops instead of doing in-person inspections.
DJ Bettencourt, the state’s insurance commissioner, emphasized that while these virtual systems can make the claims process faster, they should not compromise fairness or thoroughness. He pointed out that residents should still have the option for an in-person inspection, even if they initially submitted digital images.
According to the bulletin, insurers must follow the Unfair Claims Settlement Practices (UCSP) rules. These rules require that claims be investigated and settled fairly once liability is clear. The NHID highlighted that while virtual tools can speed up claims and reduce costs, they might miss important details about a vehicle’s damage. Therefore, if a consumer asks for an in-person inspection, insurers must provide one within a reasonable time frame.
Insurers cannot deny this request just because the consumer has already participated in a virtual assessment. Delays in providing requested in-person inspections could also violate the duty to investigate claims promptly.
Keith Nyhan, the deputy insurance commissioner, stressed the importance of transparency and timeliness in the claims process, stating that insurers cannot rely solely on virtual tools if it limits a consumer’s right to a fair investigation.
This bulletin follows earlier guidance from February, which addressed insurers’ use of aerial imagery in property insurance underwriting. The earlier advice warned against using aerial images alone to justify refusing to write or renew policies based on roof conditions. If the aerial imagery does not clearly show damage, insurers must perform a physical inspection to verify their findings, especially if a homeowner disputes the insurer’s decision.
Overall, these updates aim to ensure that consumers are treated fairly and that their rights are protected during the claims process.