The New Hampshire Insurance Department (NHID) has issued a bulletin outlining insurers’ obligations when using virtual claims adjustment systems to assess automobile damage. This guidance comes as more insurers rely on photo and video submissions from consumers or repair shops rather than in-person inspections.
Under the state’s Unfair Insurance Trade Practices law (RSA 417:4, XV), insurers are required to promptly and reasonably investigate and settle claims fairly once liability is clear. The bulletin notes that while virtual adjustment tools may help settle claims faster and reduce costs, photographs and videos may not always capture the full extent of a vehicle’s damage.
To comply with the Unfair Claims Settlement Practices (UCSP) provisions, insurers must offer an in-person inspection of a damaged vehicle within a reasonable timeframe if the consumer requests one. Insurers cannot deny such a request based solely on a consumer’s prior participation in a virtual assessment. Unreasonable delays in providing requested in-person inspections may violate the duty to promptly and reasonably investigate claims under RSA 417:4, XV(a)(3).
This guidance follows the department’s February bulletin on insurers’ use of aerial imagery in property insurance underwriting. Recent complaints indicated that some property insurers had used aerial imagery to justify non-renewals based on mistakenly identified roof conditions. The February bulletin reaffirmed that insurers may not refuse to write or renew policies solely based on cosmetic issues such as roof discoloration without a follow-up physical inspection.
Key Points from the Guidance
- Insurers must offer in-person inspections if requested by consumers
- Virtual assessments cannot replace in-person inspections if requested
- Unreasonable delays in in-person inspections may violate state regulations
- Guidance follows similar bulletin on aerial imagery in property insurance
The NHID’s guidance aims to ensure that insurers balance the efficiency of virtual claims adjusting with the need for thorough damage assessments. By requiring the option for in-person inspections, the department seeks to protect consumers from potentially inadequate virtual evaluations.
For more information on insurance regulations in New Hampshire, please visit the NHID website.
