The Advantage of ConvenienceIn the 21st century, the definition of good service is convenience! This was the perspective a Michigan agent shared with me five plus years ago. He believed that in our time-strapped world, many people will pay more for convenience or will change providers (agents or carriers) when it is absent. Today, Nationwide is testing this philosophy with the introduction of Nationwide Mobile. It is a new application for iPhone users, available free at the Apple App store, designed to help a driver take the appropriate “next step” after an accident. The program prompts the user to collect and store information on the other driver and any witnesses to an accident. The built-in GPS of the iPhone pinpoints and documents the exact location of the accident and provides contact information for emergency services, local authorities, and towing & repair facilities. While any iPhone user can download and use the free application, Nationwide policyholders are also able to report the claim directly to the carrier and specify a callback time preference. The claims process remains the same; it just originates from the iPhone. Convenience, speed, information, empowerment – what’s not to like. In addition, Nationwide is benefiting from glowing reviews on Twitter and other social networking sites. That’s viral marketing! Some agents will complain they are losing an opportunity to provide service; others will recognize it as a valuable competitive advantage when making the sale.
Challenges to Claim PracticesWith Katrina, many carriers paid a property claim based on an estimate, closed the file, and were done. If the insured could not get the property repaired for that amount, it was not the company’s problem. Recently, there have been two important court cases that relate, in part, to that practice. Nationwide, while not admitting to any wrongdoing, has offered to settle a class action suit coming out of an Arkansas circuit court. The lawsuit claimed that the company underpaid policyholders by not taking into account general contractors’ overhead and profit when it paid certain Homeowners claims involving damage to a dwelling or other structures. They are offering to pay policyholders as far back as 1996. The second case, coming from a Missouri appellate decision, is likely to end up in the Supreme Court of that state. In Smith v. American Family, the Court of Appeals overturned a trial court’s decision. The appellate court found that the carrier had breached its contract with policyholders, stating, “the breach occurred when the insurer cut a check to its policyholders based on an estimate specifying aftermarket parts.” In this case, the appellate court found that the payment did not return the damaged vehicle to its pre-loss condition as required by the Department of Insurance. A portion of the decision in this case hinged on the practice of paying the claim based on the estimate rather than the actual repair of the vehicle. Expect to see more court cases that test the validity of this claims practice.
Message From AngelaEach month the number of agents taking advantage of our on-line, half-price, CE course increases. In August we saw record-breaking numbers as agents completed the ethics course and paid only $5 a credit. In September, you have the chance to tally up major credits as we feature Professional Liability: An Emerging Line. Wisconsin and Michigan agents can get 9 credits for the course and only pay $45. It is approved in Ohio for 8 credits with a cost of $40. (Ohio agents do not have to take an exam for an on-line course!) Don’t miss this opportunity. If you are not certain if on-line CE is right for you, just give me a call and we can discuss it. I can be reached at 800-326-4741.
A Proverb for the New Month“Just when the caterpillar thought the world was over, it became a butterfly.”
| 50% off Online CE
September's featured course: Professional Liability Professional liability coverage is emerging as an important line of business. Expanding legal responsibilities of a professional, combined with exclusions included in general liability policies, create uncovered exposures faced by most professionals.
MI-9 Credits, only $45
OH-8 Credits, only $40
WI-9 Credits, only $45
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