|Roy Cupps |
|Posted on Saturday, August 21, 1999 - 10:51 am: |
Carry over from the Bulletin Board
Author John Johnson 8/20/99 in reply to other post.
Travelers "approved contractor" program is similar to the "Prizm" system, the exception being that a firm in Atlanta, Georgia will be running the network. Basically, here is how it works. Travelers claims intake personnel refer the claim to a firm who has within its hub a list of contractors who will take the estimating assignment. The contractor then estimates the repair and submits its estimate to Travelers (or Liberty Mutual, CNA, or whoever). That estimate for the most part serves as an agree repair estimate upon which the carrier pays. The contractor's reward is getting a shot at doing the repairs. Nothing more, nothing less. The carrier's bottom line adjustment expense is saved in the process. The middle man, the management firm sitting in Atlanta, extracts his fees from the contractor. In those states that require licensing of adjusters, the issue then becomes whether or not this type of arrangement is de facto in that the claim is actually being adjusted by the inspecting and estimate writing contractor who, in all probability, is not a licensed adjuster. This type of "approved contractor" arrangement is similar to the arrangements that auto carriers have with collision repair shops. The contractor may only get 1 job out of every 10 that is estimated. One approved contractor suggested to me that he loads up every estimate to compensate him for his time in estimating those 9 jobs he did not get.
|Posted on Saturday, August 21, 1999 - 3:47 pm: |
Its not a program which greatly affects cat work.Travelers brings in its own cat team and supplements with independant cat adjusters as needed. The program seems to be more for regular business at this time.
|Posted on Saturday, August 21, 1999 - 4:23 pm: |
Tom is probably correct, however we should never lose sight of the fact that contractor inspections and estimate preparation is a free service that could spill over into CAT work.