Each issue, Claims CE provides several continuing education-based questions designed to test claim professionals on their knowledge of a particular topic. This is in an effort to help educate and inform adjusters and supervisors on appropriate claim-handling techniques. For this edition, we take a look at Catastrophes. Previous quizzes looked at Auto Liability Doctrines, Homeowners 3–Special Form, Adjuster Licensing, and Ethics.
The question-and-answer format is meant to be general in nature and does not necessarily account for the differences in law and practice in different venues. The authors of this question-answer column are not attorneys; content should not be construed as legal advice for the unique circumstances of any particular claim.
Question #1:
CAT adjusters face many dangers when they go on site to settle losses. Which of the following is a risk to adjusters in the field?
a. Ladders
b. Snakes and animals
c. Nails
d. Haste
e. All of the above
Click to the next page for the answer and explanation!
Answer and explanation
The best answer is "e," all of the above.
A ladder is a critical tool that must be used with care. When selecting a proper site to stage your ladder, be mindful of electrical lines and debris on the ground, ensuring that the structure is stable before you climb. Consider using a strap or elastic cord to attach the top of the ladder to guttering to add stability.
Snakes of all types (non-poisonous and poisonous) as well as other wild and domestic animals are often displaced after a large storm, which means you may find them in unusual places. Scout the risk before exiting your car to see if there are signs of loose animals (broken chains, dog houses, etc.) and be constantly aware of any signs of animals within the risk. Mace can be used to deter most critters you might come across. Carry it on your belt or tool belt for easy access.
After a catastrophe, debris is everywhere and nails that are sticking straight might not be immediately seen. This makes stepping on one very easy. Be current on your tetanus shot just in case.
Lastly, haste can be your worst enemy; treat every inspection as the only inspection you have. Do not sacrifice safety by rushing through an inspection.
Click the next page for Question 2!
Question #2:
What personal and interpersonal challenges confront an adjuster working in a catastrophe environment?
a. Culture
b. Conditions
c. Homesickness
d. Stressed insureds
e. All of the above
Click to the next page for the answer and explanation!
Answer and explanation
The best answer is "e," all of the above.
While some regions in our country have very vibrant and well-known cultures, subtle cultural differences can be found in almost every state and town. Cultural differences can be exhibited in accents, clothing, food, music, household furnishings, and personal demeanors. Take a little time to learn about the different local cultures before you go to work in a new area so that you can avoid misunderstandings and more successfully gain the acceptance of the customers with whom you work. Adjusters who have previously worked in those areas are a good source for reference.
Working conditions will be more adverse than you have experienced working daily claims in your home territory. Utilities may be out or intermittent, comfortable lodging may be hard to find, cell and e-mail communications may be spotty or not available — but remember you are there to serve, you have a job to do (for which you are being paid), and in most cases you have a home to return to whereas the insureds for whom you work with may not have a place to stay or a job to go to.
Being away from home without the comforts and camaraderie you are used to for long periods of time is tough. Emotions can run high as you experience a lack of sleep, exposure to the elements, and the stress of dealing with those who have suffered large losses. Problems will arise that you are helpless to assist, which can take an emotional toll. Try to stay in touch with friends and family and remember that your tour is only temporary. Make the best of the time you have.
You will meet a very wide variety of insureds. Some will have minor losses that upset them greatly, others will have major losses that don't seem to bother them at all. Understand that catastrophic events take a toll on humans and people may react differently under stress than they normally do. Be patient and thorough in your communications. It is possible to be professional, firm, consistent, and gentle.
Click the next page for Question 3!
Question #3:
Which of these wouldn't be considered a typical mental challenge for adjuster working in a disaster area?
a. Boredom
b. Publicity
c. Coverage/Conditions modifications
d. Workloads
e. b, c, and d
Click to the next page for the answer and explanation!
Answer and explanation
The best answer is "e," Publicity, Coverage/Conditions modifications, and Workloads
Catastrophe sites are a magnet for news reporters. It is important that adjusters know and understand their company's or their client's policies regarding publicity. It is best to avoid providing any statements or interviews to news media unless you have reviewed the request with company management.
Carriers may modify their own policies in a storm, waiving conditions and/or providing additional coverage that may be excluded or limited in a normal situation. Examples include food spoilage, debris removal, and recoverable depreciation. Some of these situations occur after some claims are underway, adding to the challenge of proper coverage determinations. Be sure to stay current with any changes communicated by insurers.
Workloads are heavy and have to be managed. Everyone wants their claim inspected first, some are heavier in damage than others, and once the claim is inspected, payments are expected to follow immediately. All of this is taking place while new claims are coming in. This means time management is challenged to the nth degree. Payments don't go to the insured until the adjuster completes the reports, and phone calls will start mounting the longer the report is incomplete. CAT work is hard work; to keep up, you will need to inspect losses during daylight hours and diligently do your paperwork at night.
Boredom will not be an issue – don't worry.
Click the next page for Question 4!
Question #4:
How can a CAT adjuster avoid supplements and re-inspection requests?
a. It is not possible to avoid supplements and re-inspections in all cases.
b. Adjust every claim in excess of true value.
c. Be thorough with every inspection.
d. Inspect losses without meeting with the insured or insured representative.
Click to the next page for the answer and explanation!
Answer and explanation
The best answer is both "a," and "c,"
Supplements and re-inspections happen on daily claims, so they will occur with more frequency as workloads increase. Many times it is not possible to determine all damages at the time of the first inspection due to debris, power outages, and other reasons.
All claims should be settled based upon adjustments that are factual and accurate. Overpaying claims during catastrophe responses is irresponsible and unprofessional.
It is important to do complete inspections in response to catastrophe claims. Often the insured does not know the full extent of damage sustained. A claim for wind damage to a pool cage could also include wind damage to roofing, siding, and fencing. Be sure to inspect the entire risk for damage — covered or otherwise.
Inspecting a loss without meeting with an insured or insured representative should be avoided if possible so that a full inspection of the interior and exterior of the risk can be accomplished during the first visit. It is best to avoid any situation that places an adjuster in an insured's home or on the insured's property outside of the presence of the insured or a representative.
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