Vermont Business Magazine In response to the State of Emergency declared July 9 by Governor Phil Scott following heavy rains and anticipated floodings, the Commissioner of the Department of Financial Regulation announced July 12 that the Department is preemptively allowing property and casualty insurance carriers to use individual adjusters not licensed in Vermont. Insurers can contact the Department for further guidance.
See related DFR Bulletins No. 225 and No. 226 for detailed guidance below.
Catastrophe Adjusters/Appraisers in Vermont: According to 8 V.S.A. § 4803, the Department of Financial Regulation can permit insurers to use appraisers and adjusters who are not licensed in Vermont in the wake of catastrophic events. With the expectation that current heavy flooding and rains will lead to widespread damage, the Department today is exercising that option.
Still, such insurance adjusters and appraisers must be licensed in their state of residence or another state if / when the resident state does not issue such license. Non-resident adjusters are not allowed, currently, to designate Vermont as a home state.
Vermont defines a public adjuster as any person who investigates claims and negotiates settlement of claims arising under policies of insurance in
Insurance carriers must notify the Department by email of their intentions to use catastrophe adjusters/appraisers. The insurer also must provide the names, addresses and license information for everyone who will be adjusting/appraising.
Within ninety (90) days from the date of a claim denial a Vermont licensed adjuster will review the denial to ensure the claim was properly adjusted.
The insurer must notify the Department via email of its intention to use catastrophe adjusters/appraisers and provide a list of the names, addresses and license information for individuals who will be adjusting/appraising.
Please visit the Department PC Adjusters webpage for more information including a list of frequently asked questions. Or, email [email protected] with a telephone number and other contact information; someone from the Department will contact you as soon as possible.
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BULLETIN NO. 225 | Insurance Bulletin No. 225 | July 12, 2023 | Use of Catastrophe Adjusters and Appraisers
Insurance Bulletin No. 225
Bulletin Authorizing Use of Catastrophe Adjusters and Appraisers
July 12, 2023
Due to the scope of damage caused by Storms, the Department has authorized insurers to use Catastrophe Adjusters and Appraisers, pursuant to Title 8 V.S.A. 4803(d)(2). This authorization is effective July 10, 2023 for a period of ninety (90) Days. The authorization is subject to the following requirements:
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The adjuster/appraiser must be licensed in his/her resident state or other state if the resident state does not issue such license;
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The insurer must notify the Department via email to [email protected] of its intention to use catastrophe adjusters/appraisers and provide a list of the names, addresses and license information for individuals who will be adjusting/appraising; and,
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Within ninety (90) days from the date of a claim denial a Vermont licensed adjuster will review the denial to ensure the claim was properly adjusted.
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Insurers and adjusting entities are responsible for the conduct of persons authorized as catastrophe adjusters and appraisers and should ensure that such individuals adjust and appraise claims consistent with Vermont insurance laws and regulations.
Licensees should monitor the Department’s website www.dfr.vermont.gov for updates.
BULLETIN NO. 226 | Insurance Bulletin No. 226 | July 11, 2023 | Federal Disaster and Storm-Related Damages
Insurance Bulletin No. 226
Federal Disaster and Storm-Related Damages
July 11, 2023
On July 11, 2023, President Biden approved Vermont’s emergency declaration in response to the damage caused by torrential rains and flooding. In light of the federal and state disaster declarations and the number of Vermonters affected by the storms, the Department is providing licensees with the following guidance:
Catastrophe Adjusters
- Pursuant to Title 8 V.S.A. 4803(d)(2), the Department has authorized the use of Catastrophe Adjusters and Appraisers.
- An insurer seeking to utilize Catastrophe Adjusters and Appraisers should follow the requirements set forth in Bulletin 225. Within ninety (90) days from the date of a claim denial a Vermont licensed adjuster must review the denial to ensure the claim was properly adjusted.
- Insurers and adjusting entities are responsible for the conduct of persons authorized as catastrophe adjusters and appraisers and should ensure that all such individuals are familiar with Vermont laws and regulations regarding claims handling and settlement.
Claims Handling
- Vermont law requires the prompt investigation of all claims, including investigation of the cause of loss to determine if coverage exists, on a claim-by-claim basis. While the Department acknowledges the large volume of claims that insurers are experiencing, insurers are not relieved of the obligation to promptly acknowledge and investigate claims as set forth in Regulation 79-2.
- Insurers have a duty to properly investigate all claims to determine if coverage exists, including the applicability of any policy endorsements, such as sump pump and water backup endorsements.
- The Department expects insurers to work with claimants who have been displaced from homes or businesses and are unable to meet reporting timelines as specified in insurance policies.
- To qualify for federal disaster assistance, insureds may be required to furnish evidence that their insurer has denied their claim, in whole or in part. If an insurer is denying a claim, it must provide proper documentation to all claimants in order to enable Vermonters and Vermont businesses to apply for federal disaster assistance.
- The Department encourages insurers to establish expedited claims processing procedures and simplified claim reporting forms where appropriate.
- Insurers handling automobile losses are reminded to review Regulation 79-2 addressing total loss settlementsand Bulletin 164 addressing diminution of value.
Premium Payments and Vacancy
- The Commissioner encourages insurers operating in Vermont to provide prompt and immediate relief to those Vermont policyholders affected by the disaster, including the temporary suspension of premium payments and suspension of vacancy provisions for those temporarily displaced.
- The Department will work with insurers to minimize the regulatory effects of an insurer’s suspension of premium payments with regard to financial review requirements.
- The term “suspension” is not intended to mean forgiveness of the premium obligation; rather, it refers to an extended grace period for the payment of the premium.
- Insurers are encouraged to work with policyholders impacted by the disaster with regard to the collection of premiums, including granting requests for reasonable payment plans. The Department will be encouraging Vermonters to contact their producer or insurer directly if they have questions or concerns about premium payments or policy status.
Underwriting
- The Department’s position is that it is not appropriate for insurers to re-rate, cancel, non-renew, or refuse to provide insurance coverage solely due to an individual’s status as a victim or evacuee of this disaster.
- The Department’s position is that it is not reasonable to change policyholders’ rating classifications or increase their rates solely because they are a victim or evacuee of this disaster.
Source: Montpelier, VT – DFR 7.12.2023
