Adjusting Practices
Where liability and damages are reasonably clear, the NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation says an auto insurer shall NOT:
Answer
Recommend that third-party claimants claim under their own policies solely to avoid paying under its policy
Model 902 §8B: 'Where liability and damages are reasonably clear, insurers shall not recommend that third party claimants make claim under their own policies solely to avoid paying claims under such insurer's policy.'
Source: NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation (Model 902, 1997 printing), §8B
Not the answer
- Settle directly with third-party claimants even though their own insurers could later pursue subrogation
- Ask third-party claimants whether their own policies provide rental or towing coverage for the loss as well
- Inform third-party claimants that their own collision coverage may also respond to the same loss
Practice this
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