WHAT CLAIMS ADVICE IS NEEDED IMMEDIATELY AFTER A DISASTER?

• Inventory and photograph the debris pile before it "walks away."


• Photograph all losses immediately.


• Board up and protect the property from further damage as is required by the policy.


• Salvage any financial documents or business records needed to prove and document claims.


• Inventory damaged and undamaged property, and separate them for the insurance company.


• Immediately get an engineer and/or contractor to the property to prepare estimates of repair.


• Put estimates in an Exactimate format, or the format that the insurance companies use.


• Determine the actual cash value and replacement cost of all items that are depreciable including stock, buildings, furniture, fixtures and equipment.


• Submit the claim.


• Document all conversations with the adjuster and insurance company in writing.

WHO PREPARES AND SUBMITS CLAIMS?

Many people can be responsible for preparing and submitting claims. The policyholder should prepare his or her own claim. However, he or she may ask for help.

• Agents -- The agent should help prepare the claim, making sure to carry errors and omissions insurance (because the insured will look to the agent, as the claim preparer, as the responsible party.


• Attorneys -- Skilled in legal decisions, policy language and sometimes negotiation skills, but they cannot provide or coordinate the other services necessary for recovering after a disaster.


• Accountants -- Skilled in tax accounting, but they may not be familiar with the accounting methods used by insurers nor the terms and technical language in the policy. Accountants can help with the business interruption and some of the calculations on contents.


• Insurance Company -- Reacts to the claims submitted by the policyholder. While the company representative helps by advising the client, that person is not dedicated to getting the insured the best settlement possible. Insurance company adjusters do not have the time to help or give advice.


• Public Adjuster -- Public adjusters are skilled in preparing and negotiating claims. They understand the complex technical language of the policy and current court cases affecting the coverage. Public adjusters use their skills to prepare stock, equipment claims, machinery claims, building claims and business interruption claims. Public adjusters are skilled negotiators. Rarely do claims end up in litigation.

BLACK BOXES IN AUTOS MUST BE DISCLOSED

Automakers will be required to tell owners if their vehicle has an event data recorder, commonly called a "black box," and collect uniform data from the devices, the federal government said.

In the seconds before, during and after a crash, event data recorders can provide information about a vehicle's speed and acceleration, whether air bags deployed, the brakes applied or seat belts worn.

The National Highway Traffic Safety Administration said beginning with 2011 model year vehicles automakers will need to disclose the existence of the technology in owner's manuals.

The data recorders also will need to be more durable to protect the information during a crash while requiring the auto industry to collect a uniform amount of data to help in the development of new safety regulations.

With more than 40,000 motorists killed on the roads each year, supporters of the black boxes contend they give investigators and automakers an extensive database that can help them design better vehicle safety features and improved roads.

But some privacy experts worry that the information could be accessed by anyone and that most motorists don't know the black boxes are installed in their vehicles.

All told, about 64 percent of the 2005 model year vehicles have the equipment. General Motors Corp. and Ford Motor Co. currently install the devices in virtually all new vehicles. The rules do not require the data recorders to be used in all new vehicles.

Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

REINSURERS 'HUMBLED, BUT MOST NOT BROKEN'

In its recently issued global insurance report A.M. Best Co. concludes that "almost a year after three massive hurricanes -- Katrina, Rita and Wilma -- the global reinsurance industry is still struggling to manage its catastrophe exposure."

The report, "Reinsurers Humbled, But Most Not Broken, By Hurricane Losses," notes that their impact was felt worldwide.

"Reinsurers absorbed 60 percent of the record insured property losses," Best said. "Bermuda and U.S.-based companies have borne the brunt so far, at $11 billion and $7 billion, respectively. Ultimate costs may not be known for some time."

The 28-page report maintains that the underlying stability of the current reinsurance market remains tenuous, even though most reinsurers are financially positioned to meet their claim obligations. Since the 2005 hurricanes, the financial-strength ratings of 13 U.S. and Bermuda reinsurers have been downgraded or withdrawn after being downgraded, as of July 31, 2006. Hurricane losses were a factor in each of these actions. Four Bermuda-based companies also have been placed in run-off.

The new report also includes Best's annual ranking of the Top 35 Global Reinsurance Groups based on gross written premiums for 2005. The top five include Munich Re, Swiss Re Group, Berkshire Hathaway Group, Hannover Re and Lloyd's of London. But, as Best notes, "Swiss Re has since closed on its purchase of GE Insurance Solutions, which should help it reach the top when 2006 premiums are reported."

An excerpt from the report, including a video, is available at www.bestweek.com.