The New Hampshire Insurance Department published a bulletin informing auto insurers of the allowable use of virtual claims adjustment systems.

There has been an increase in the use of virtual claims adjustment systems by insurers, where the insured or the insured’s auto repair shop submits photos or videos to the insurer instead of performing an in-person inspection to assess the damage. Virtual claims adjustment systems may help settle claims more efficiently, but insurers should be careful not to be in violation of the Unfair Claims Settlement Practices (UCSP).

Under the UCSP, insurers must promptly and reasonably settle claims. While virtual tools can be helpful, they may not fully show the condition of a damaged vehicle. If an insured requests an in-person inspection, the insurer is obligated to do so. An insurer cannot deny an in-person inspection request because the insured previously elected to use a virtual adjustment system.