Arbitration continues to be a hot subject among our client readers. We have begun tracking the cases submitted for damages disputes which have escalated quite a bit over the last few years. We are frequently confronted by adverse carriers deducting a small amount from the Demand submitted, based on new tools they use to review appraisals. In these instances the adverse carriers are not calling to discuss the reduction, but rather sending a drop check for the amount they feel is fair and reasonable.
Unfortunately in most instances we disagree with their assessment and immediately contact the adverse carrier representative to discuss an amicable resolution. In some cases this is possible, in others we must resort to filing arbitration to recover the balance owed. While many of our arbitration submissions are successful, others are not. Spartan feels strongly that this recent unreasonable practice is costing our clients both on recovery dollars and expense dollars as well, relative to filing arbitration.
To date we have established that in many instances the adverse carrier has not provided us with the evidence to justify the reduction(s). Per Arbitration Forums, in these damage disputes scenarios it is our responsibility as Applicant to explain and support the repairs which can be accomplished with adjuster and estimate notes. Detailed photos are also helpful. It is the responsibility of the Respondent to provide specific evidence to support the availability of less expensive parts including the date, description, cost and location relative to the repair shop's location. In addition, our client appraisers are not bound by the adverse carrier's estimating guidelines.
To this end, please be assured that Spartan is making every effort to explore and oppose unjust reductions to your claims, and is putting together a repository of information which we hope to present to the State Insurance Department.