RECORDS OF MEETING
CLAIMS ADVISORY COMMITTEE
A meeting of the Claims Advisory Committee was held at the offices of Commonwealth Automobile Reinsurers, 100 Summer Street, Boston on –
THURSDAY, NOVEMBER 12, 1998 at 9:30 A.M.
The following members were present -
Ms. Kathleen Devericks - Chairperson
Premier Insurance Company
Mr. Paul B. Coleman *Safety Insurance Company
Mr. Fran DelageHanover Insurance Company
Mr. Ray DeSantis **Commerce Insurance Company
Mr. James DohertyDoherty Insurance Agency
Mr. Erik JepsenPeoples Service Insurance Company
Mr. Dana MarchantCGU Insurance
Mr. James MutschlerLiberty Mutual Insurance Company
Mr. Robert PuopoloAmica Mutual Insurance Company
Mr. Thomas RaherNational Grange Mutual Insurance Company
Mr. Jerry RemillardTrust Insurance Company
Ms. Joyce SmithCommonwealth Mutual Insurance Company
Mr. Steve Tague ***Metropolitan Property & Casualty
Mr. Edward Thompson ****Arbella Mutual Insurance Company
Ms. Maria WalshPlymouth Rock Assurance Corporation
Mr. Robert Woods, Jr.CNA Insurance Companies
*Substitution for Mr. Robert Kerton
**Substitution for Mr. Arthur Remillard, III.
***Substitution for Mr. Donald Cann
****Substitution for Mr. Douglas Jones
Also present were –
Commonwealth Automobile Reinsurers
Mr. Joseph MaherVice President & General Counsel
Ms. Valerie GedziunVice President – Claims
Ms. Susie Almonte WintersClaims Analyst
Records of Meeting1November 12, 1998
Claims Advisory Committee
Commonwealth Automobile Reinsurers
Mr. Richard DaltonSenior Claims Examiner
Mr. Joseph JasonSIU Investigator
Mr. Jean LaprimeSenior Claims Examiner
Mr. Robert McNamaraClaims Examiner
Also present were –
Mr. David CastroCGU Insurance
Mr. Victor FanikosADALB
Mr. Joe HaswellNorfolk & Dedham
Mr. Peter KenyonADALB
Mr. Don SpinelliHanover/ADALB
Mr. Glen TonnessenUSAA
Mr. Stephen VeigaADALB
Claims Advisory Committee Chairperson Ms. Kathleen Devericks called the meeting to order at 9:30 A.M..
98.0Records of Meeting
Mr. Doherty made a motion to approve the records of the Claims Advisory Committee meeting of August 26, 1998, and the Automobile Damage Appraisers Licensing Board Subcommittee meetings of August 19, 1998 and October 7, 1998. Mr. Raher seconded and the motion passed unanimously.
98.41Automobile Damage Appraiser’s Licensing Board Subcommittee
A report was given on the Automobile Damage Appraiser’s Licensing Board Subcommittee of October 7, 1998. Messrs. Kenyon and Spinelli, industry representatives on the ADALB, were present at the subcommittee meeting and discussed issues insurance companies have concerning the operation of the ADALB’s meeting.
Next, the chairperson welcomed Messrs. Kenyon and Spinelli along with Mr. Victor Fanikos, Counsel for the ADALB. Mr. Spinelli stated that the subcommittee has been very helpful to the Board. Ms. Walsh asked the Board members if there were things that the Board would like carriers to pass on to their employees. Mr. Spinelli encouraged more companies to express their thoughts at the meetings and participate in the discussions. Mr. Woods advised the Board members that when individuals speak at the ADALB meetings they are expressing the opinion on their own company and not the industry or CAR.
Ms. Devericks indicated it would be beneficial to receive Minutes of the prior meeting of the ADALB at the same time that they receive the Agenda for the next meeting. Mr. Fanikos indicated that the Minutes are only in draft form until approved by the Board but that Mr. Veiga would forward these to CAR for dissemination to the companies when they are distributed to the Board.
Records of Meeting1November 12, 1998
Claims Advisory Committee
The Committee then considered a letter from Mr. Stephen Veiga, Executive Secretary of the ADALB, dated November 9, 1998 requesting a meeting to discuss the alleged increased number of fraudulent auto glass claims. A motion was made by Mr. Doherty and seconded by Ms. Walsh to refer this issue to the ADALB Subcommittee for consideration. The motion passed unanimously.
98.45Average Cost Per Claim Report
Ms. Gedziun reported that work has begun on an expanded version of the Average Cost Per Claim Report that CAR runs quarterly and distributes annually. She continued by saying that the new version will provide information on voluntary as well as ceded business for both personal and commercial business. Companies will be able to access this report through CAR’s online telecommunications system. The report will be updated monthly.
Ms. Gedziun stated that the report is still in its developmental stages and it will be in a format similar to the one CAR currently uses. This will be a report on paid losses and will be presented as an inception to date report. She also said that industry figures will be available for comparison with companies’ own figures. CAR hopes to have the new version ready by mid 1999.
98.55Educational Subcommittee
The members for the 1999 Cost Containment Seminars were appointed as follows:
The meeting will be chaired by National Grange Mutual Insurance Company. Other members will include Commonwealth Mutual Insurance Company, Hanover Insurance Company, Metropolitan Property & Casualty, Premier Insurance Company, Sentry Insurance Company, and The Doherty Insurance Agency.
The first meeting of the Educational Subcommittee will be held on Thursday, December 3, 1998 at 10:00 A.M..
There being no further business, a motion was made by Mr. Doherty and duly seconded by Mr. Delage to adjourn the meeting.
The next scheduled Claims Advisory Committee meeting will be held on Wednesday, January 13, 1999 at 9:30 A.M..
The motion passed on a unanimous vote.
The meeting adjourned at 11:15 A.M..
VALERIE B. GEDZIUN
Vice President – Claims
Boston, Massachusetts
December 17, 1998
Note:These Records have not been approved. They will be considered for approval at the next Claims Advisory Committee meeting.