www.donegalgroup.com AGENT CLAIM DRAFT AUTHORITY PROGRAM INSTRUCTION MANUAL 2/2013
TABLE OF CONTENTS Page 1. Introduction...1 2. Types of Claims Included in Program... 2 3. Authority Level... 3 4. Check Issuance Instructions/Reporting of Loss...4-5 5. Sample Agent Loss Report and Settlement Check Form... 6 6. Check Register... 7 7. Sample Check Register Form... 8 8. Depreciation Guidelines... 9
INTRODUCTION Our Agency Claim Draft Authority Program was implemented to assist Donegal Insurance Group agents in servicing specific types of small first party claims. It is anticipated the program will provide agents with the opportunity to enhance policyholder / agent / company relationships while providing excellent claim service to our customers. Special attention must be given to the authority levels and requirements placed upon you as an agent participating in this program. The following pages outline all of the handling procedures that must be followed. In the event there are any questions on your implementation or usage of this program, please immediately contact our Claim Office servicing your agency. 1
TYPES OF CLAIMS INCLUDED IN PROGRAM This program is limited to paying first party claims. The following types of claims may be handled under this program: 1. Private passenger auto and commercial auto, but limited to the following types of claims: a) Collision; b) Other than collision coverage, excluding claims involving the total theft of a motor vehicle; glass claims may be paid under this program or reported directly to us under our motor vehicle glass program; and c) Towing and labor claims. 2. All first party property claims involving loss to buildings or contents may be paid under this policy. This includes personal and commercial policies. THIS PROGRAM DOES NOT INCLUDE ANY CLAIMS INVOLVING INJURIES OR THIRD PARTY CLAIMS. If you receive notice of a loss involving any injuries or third party claims, immediately submit the loss report to the Claim Office servicing your agency. This program is intended to be used on claims that can be promptly paid after the date of loss. It is not to be used as an advance payment program and all payments are intended to be final settlements. 2
AUTHORITY LEVEL The following settlement / draft issuance authority requirements have been established to be consistent with current Donegal Insurance Group claim handling philosophies on first party claims. Regarding the dollar authority limit, the following two provisions apply: 1. Total covered damages / loss may not be in excess of $3,500; and 2. The NET payment to the named insured or repair facility may not be in excess of $2,500. All settlement checks have been RESTRICTED ON THE FACE TO A MAXIMUM ISSUANCE AMOUNT OF $2,500. FOR CLAIMS HANDLED UNDER THIS PROGRAM, YOU ARE NOT REQUIRED TO INCLUDE THE MORTGAGEE S OR LIENHOLDER S NAME ON SETTLEMENT CHECKS. Settlement checks may only be signed by agency personnel who have been authorized by our company and a bank signature card signed by the individual must be on file with our company. 3
CHECK ISSUANCE INSTRUCTIONS / REPORTING OF LOSS To assist in your use of this program, we have developed a combination loss report / claim check. On the following page, you will find an example of the completed Agent Loss Report and Settlement Check. The top portion of the form serves as your loss report and the bottom section is the actual claim check that is presented to the policyholder or other payee. The following will serve as the list of instructions for completion of the form and the claim check: 1. It is important that you complete all applicable information on the loss reporting section of the Agent Loss Report and Settlement Check form. This includes all information you have pertaining to the description of the loss and accident facts. This will assist us in determining whether or not there is any additional work for us to perform from this office including consideration of potential subrogation. 2. The check portion must be completed and include all of the information contained on the sample. 3. If a vendor (i.e. repair facility, contractor, etc.) is included as a payee on the check, please obtain the tax identification number and address for the vendor and include it with the documentation submitted to us. 4. Upon your issuance of the check, remove the back copy of the Agent Loss Report and Settlement Check form and retain it for your records. You must mail the original loss report section and the remaining two copies within 24 hours to the Donegal Insurance Group claim office that services your agency: For DE, MD and PA Agents: Donegal Insurance Group P.O. Box 302 Marietta, PA 17547-0302 Phone No.: (800) 877-0600 FAX No.: (717) 426-7023 For Ohio Agents: Donegal Insurance Group P. O. Box 479 Greenville, OH 45331-0479 Phone Number: (800) 321-1117 FAX No.: (937) 548-4403 4
For AL, GA and TN Agents: Donegal Insurance Group 3237 Satellite Blvd., Suite 300 Duluth, GA 30096-2357 Phone No.: (800) 277-7442 FAX No.: (770) 291-4698 For NC, SC and VA Agents: Donegal Insurance Group P. O. Box 1279 Glen Allen, VA 23060-1279 Phone Number: (800) 468-1127 FAX No.: (804) 266-7726 Additionally, documentation (i.e. estimates, bills, etc.) must be attached to the Agent Loss Report and Settlement Check form upon your submission to us. On automobile losses other than glass and towing and labor claims, we request that two competitive repair estimates be obtained prior to the issuance of a settlement check. However, one estimate will be sufficient provided you are familiar with the repair facility and past experiences have established the repair facility s reputation for providing competitive repair estimates. On glass losses, please make sure the policyholder is aware of our glass program. However, if the policyholder has already repaired the glass or chooses not to use our glass program, make sure proper discounts are obtained from the repair facility. 5. In the event you receive a supplemental repair bill, we ask that you immediately FAX or email the bill to us. The supplemental check must be issued by our Claim Department. 6. In the event a check is issued and given to the payee in error, immediately contact your servicing claim office. 5
CHECK REGISTER All Agent Loss Report and Settlement Check forms have been pre-numbered. Each agent participating in this program is responsible to record on the Check Register form all checks that are issued. Each distribution of Agent Loss Report and Settlement Check forms will be in batches of 25. Upon your exhaustion of a batch, the Check Register form must be submitted to the Claim Office servicing your agency. Additional supplies of Agent Loss Report and Settlement Check forms may be requested through the Claim Office servicing your agency and obtained prior to exhausting your existing supply. This will assure your continued ability to provide this service to policyholders. In the event an error is made in the completion of the check portion of the form, it is mandatory that you immediately void the check. This is simply done by writing the word VOID across the face of the check portion of the form. You must then mail the Agent Loss Report and Settlement Check form to us. DO NOT DESTROY THE ORIGINAL CHECK. Also, you must indicate on your Check Register form that the settlement check has been voided. 7
DEPRECIATION GUIDELINES For certain types of repairs or replacement items, depreciation may be applicable. Whenever any of the following list of motor vehicle parts are being replaced, depreciation must be considered: 1. Tires; 2. Radios or other covered sound producing equipment; 3. Convertible and vinyl tops; 4. Canvas tops (i.e., jeep soft tops); 5. Exhaust system parts; 6. Painting of the entire motor vehicle; 7. Replacement of electrical, ignition wiring or engine parts. Additionally, depending upon the coverages purchased by the insured, many first party property claims may be subject to depreciation. As applicable depreciation amounts vary due to usage, age and the particular manufacturer, we are unable to give you a specific listing of percentages that would be applicable on all cases. Therefore, we request that you contact us for assistance to determine whether or not depreciation is applicable to the individual loss. 9