Originally used in the aircraft industry, event datarecorders (EDRs), commonly known as "blackboxes," are now incorporated in a variety of consumer products,ranging from household appliances and alarm panel systems tocars and copiers. Recording a final data picture just before aproduct fails, EDRs are tamper-proof with a read/write memorydevice that unobtrusively captures a variety and wealth of productinformation that may be useful to an adjuster evaluating subrogation arising from aloss. For example, in appliances, EDRs can be triggered by a powersurge or temperature spike, either of which can support aninsured's claim that he or she saw the product begin to smoke,catch on fire, or fail to operate properly.

It is easy to compare EDRs to a constant surveillance systemthat monitors its surroundings, similar to the telescreen in GeorgeOrwell's classic novel "1984," which monitored citizens at alltimes. However, unlike the telescreen and the negative "Big Brotheris Watching" connotation, EDRs are positive mechanisms when used appropriately and consistentlywith state legislative requirements. 

The Age of Smart Technology
EDRs and smart technology programs have greatly expanded available data about products and their environments. Somemanufacturers provide EDRs that monitor and diagnose appliancesoff-site, but data collected varies. For example, some EDRs provideoperating hours, switch status and attempts to connect outsideagencies, such as a fire panel, and so on. These days, smarttechnology is being used to control appliances, as well as heatingand air conditioning systems to save energy and increase safetythrough the use of meters and controls that take specificmeasurements at pre-determined intervals. Such controls andmetering can acquire, analyze and convert energy data to improveefficiency. 

Smart technology provides a significant amount of usefulinformation shortly before and during a failure that can becaptured for expert analysis. Recent patent applications issued forhousehold appliances with air dryer devices and heating unitsinclude dishwashers, washers, dryers, and stoves, and so on. Forinstance, Whirlpool Corporation obtained a patent for a stove thatincluded schematics of a control clock accessory for its inventoryand recording collector that dealt with links to communicate withmultiple appliances. Appliance Data Pub. No. US 2009/0100132A1. Thepatent also noted that the black box record was constructed so thatit could not be destroyed, and could retain data for the appliancein case of a fire or other failure event.

Data can be communicated to a remote servicecenter or a hand-held device, and further, the remote servicecenter can interactively control the appliance via the centralcollector. Some examples include: a stove with a built-in stirrerremotely controlled and an ingredient dispenser controlled by awireless device and a sensor that monitors the cook top panremotely.

Additional household appliances subject to remote monitoring arewashing machines, dryers, dishwashers, refrigerators, freezers,toasters, blenders, mixers, food processors, coffee makers, and soon. The user can be notified by his hand-held device with alertsabout the products being monitored. For a fee, the appliances canalso be monitored by the manufacturer to include failuresdiagnoses.

The Thought Police
Just like the thought police in "1984," major companies such as LG,General Electric, and Panasonic implement accelerated smarttechnology in their products. In fact, LG now offers applianceswith THINQ Technology which permits "smart" washers and dryers,ovens, stoves, vacuums, dishwashers, and refrigerators to be Wi-Ficontrolled, and to include smart metering. This new technology collects critical information about theappliances' performances that needs to be evaluated for subrogationrecovery. Further, LG offers a Smart Diagnosis program thatallegedly notices when something goes wrong in a home appliance andissues alerts on the product's display panel. This program willsoon offer Wi-Fi appliance alerts to consumers.

Panasonic unveiled its own energy smart product line calledECONAVI, which features 30 new appliances, including refrigerators,washers, air conditioners, microwaves, bread makers, rice cookers,and so on. These products were developed to monitor a user's livingenvironment and adjust usage accordingly. They also collectvaluable data about the product and its environment, which is animportant part of any subrogation investigation involving productlosses.

GE also offers a Nucleus Energy Manager, whichincludes a programmable thermostat, washer, dryer, and dishwasher.The program manager collects real-time information about energy usein the home, providing vital data about the circumstances occurringat or near the time of a loss. These home energy management systemsoffer different levels of energy monitoring and control over homeappliances.

Vehicle EDR Data and Legislative Action
In Arkansas, California, Colorado, Connecticut, Maine, NewHampshire, New York, Nevada, North Dakota, Oregon, Texas, Virginia, and Washington,state laws have been enacted related to EDRs in vehicles. Statestatutes have been ratified based on consumer complaints aboutcompanies obtaining vehicle data without the owner even knowingabout it. Warrants have been issued in criminal cases in somestates to access vehicle EDR data. The National Highway TrafficSafety Administration (NHTSA) released a mandate on vehicle EDRs(47478-47489), providing a minimum standard for the data that EDRscollect. Fifteen types of vehicle crash data are required by theNHTSA. These include: pre-crash speed, engine throttle, brake use,measured changes in forward velocity, driver safety belt use, airbag warning lamp status, and air bag deploymenttimes. 

Courts have been more willing to accept EDR information as areliable source of empirical data. Recovered empirical data avoidsthe memory hole of oblivion when such product data is notrecovered. Because of the expansion of EDRs into consumer householdproducts other than vehicles, legislative action in states may benecessary to define the scope and access to an appliance'sdata.

Doublethink
In "1984," the term "doublethink" was euphemistically coined forsimultaneously holding and believing contradictory beliefs. WhatEDR and smart technology may produce is empirical data that wouldostensibly undercuts "doublethink" about what happened to a productinvolved in a failure subject to a subrogation investigation. TheWhirlpool patent discussed above noted black box operational datacould be used by insurance companies to assess the causes andeffects of a destructive event. Physical evidence to includerecoverable EDR smart technology data needs to be preserved after aloss event, and the value of that data will not be known until acomplete subrogation investigation is completed. Recovered dataneeds to be properly secured and evaluated with other evidence,witness statements, available video/audio and other details, aspart of any subrogation investigation. In addition, data may assistin establishing an area when a loss occurred as well as the causeof a loss.

As Isaac Asimov, an American science fiction author, is quotedas saying "The only constant is continuing change, inevitablechange that is a dominant factor in society today." Claimsadjusters must keep pace with smart technology advances in property claimsrelative to subrogation recovery issues, and they must also obtainand preserve available EDR information and smart technology dataproperly.