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Chip Merlin Participates in Alternative Dispute Resolution Roundtable
INSURANCE CONSUMER ADVOCATE SEAN SHAW HOSTS ALTERNATIVE DISPUTE RESOLUTION ROUNDTABLE
Click Here for Video of the Roundtable
TALLAHASSEE — Florida’s Insurance Consumer Advocate, Sean Shaw, hosted an Alternative Dispute Resolution Roundtable to help Floridians affected by property insurance losses. On Wednesday, January 6, 2010, Sean Shaw invited members of the insurance industry, public adjusters, appraisal umpires and attorneys to work together to improve the appraisal process so that it can once again be a viable, cost-effective claim dispute resolution process.
Before the 2004/2005 hurricane season, the appraisal process was a seldom used contractual provision in homeowners’ insurance policies. If the claim could not be settled through mediation either the homeowner or insurance company could request appraisal. Each party would select an appraiser to estimate the cost to repair the damaged property. If the appraisers were unable to reach an agreement, the appraisers would select an umpire. The umpire would review the estimates completed by the appraisers and make a determination on the amount needed to make repairs or replace the damaged property. Agreement by two of the three parties would be binding on all parties with few exceptions.
However, since the 2004/2005 hurricane seasons, the handling of insurance claims and the alternative dispute resolution processes; such as mediation, appraisal and litigation have remained a topic of concern for all parties involved in the claims process. Currently, there are no standards for the appraisal process, and this has led several insurance companies to the belief that the appraisal process is no longer a viable option.
A viable appraisal process would enable Florida homeowners to resolve disputes concerning the value of damaged property without utilizing the costly litigation process. It would also reduce insurers concerns of abuse and fraud under the current process.
This roundtable was convened to address the unique problems represented by the appraisal process that arose during two Claims Dispute Resolution Roundtables that were held in July and November. With the conclusion of the Alternative Dispute Resolution Roundtable, the Office of the Insurance Consumer Advocate will now review the recommendations provided by the participants of all three roundtables. The recommendations of the first two roundtables regarding the claims process will be summarized along with the recommendations from the third roundtable regarding the appraisal process. The Insurance Consumer Advocate’s office is now in the process of drafting a report detailing the concerns raised by all parties on each issue. The report will also include the Insurance Consumer Advocate’s recommended course of action on each issue. The report is expected to be finalized in mid-February and will be presented to Senate President Jeff Atwater and House Speaker Larry Cretul.
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The Insurance Consumer Advocate is appointed by Florida Chief Financial Officer Alex Sink and is committed to finding solutions to insurance issues facing Floridians, calling attention to questionable insurance practices, promoting a viable insurance market responsive to the needs of Florida’s diverse population and assuring that rates are fair and justified.
Click Here for Video of the Roundtable
TALLAHASSEE — Florida’s Insurance Consumer Advocate, Sean Shaw, hosted an Alternative Dispute Resolution Roundtable to help Floridians affected by property insurance losses. On Wednesday, January 6, 2010, Sean Shaw invited members of the insurance industry, public adjusters, appraisal umpires and attorneys to work together to improve the appraisal process so that it can once again be a viable, cost-effective claim dispute resolution process.
Before the 2004/2005 hurricane season, the appraisal process was a seldom used contractual provision in homeowners’ insurance policies. If the claim could not be settled through mediation either the homeowner or insurance company could request appraisal. Each party would select an appraiser to estimate the cost to repair the damaged property. If the appraisers were unable to reach an agreement, the appraisers would select an umpire. The umpire would review the estimates completed by the appraisers and make a determination on the amount needed to make repairs or replace the damaged property. Agreement by two of the three parties would be binding on all parties with few exceptions.
However, since the 2004/2005 hurricane seasons, the handling of insurance claims and the alternative dispute resolution processes; such as mediation, appraisal and litigation have remained a topic of concern for all parties involved in the claims process. Currently, there are no standards for the appraisal process, and this has led several insurance companies to the belief that the appraisal process is no longer a viable option.
A viable appraisal process would enable Florida homeowners to resolve disputes concerning the value of damaged property without utilizing the costly litigation process. It would also reduce insurers concerns of abuse and fraud under the current process.
This roundtable was convened to address the unique problems represented by the appraisal process that arose during two Claims Dispute Resolution Roundtables that were held in July and November. With the conclusion of the Alternative Dispute Resolution Roundtable, the Office of the Insurance Consumer Advocate will now review the recommendations provided by the participants of all three roundtables. The recommendations of the first two roundtables regarding the claims process will be summarized along with the recommendations from the third roundtable regarding the appraisal process. The Insurance Consumer Advocate’s office is now in the process of drafting a report detailing the concerns raised by all parties on each issue. The report will also include the Insurance Consumer Advocate’s recommended course of action on each issue. The report is expected to be finalized in mid-February and will be presented to Senate President Jeff Atwater and House Speaker Larry Cretul.
###
The Insurance Consumer Advocate is appointed by Florida Chief Financial Officer Alex Sink and is committed to finding solutions to insurance issues facing Floridians, calling attention to questionable insurance practices, promoting a viable insurance market responsive to the needs of Florida’s diverse population and assuring that rates are fair and justified.
