Every now and then, one thing crosses my desk that stops me mid-sentence. Just lately, an lawyer on an expert listserv wrote to me, pissed off and incredulous:
“We’re reaching out for details about formal and casual claims dealing with manuals, pointers, or different supplies from our good mates at Chubb/ACE Insurance coverage for an ongoing protection and discovery dispute. Chubb/ACE is taking the place in our case that the one claims-handling steerage that exists is a 7-page ‘Greatest Practices’ pamphlet.”
A seven-page pamphlet. That’s the sum whole of claims knowledge supposedly governing one of many world’s largest, most subtle insurers.
Let’s name that what it’s: ludicrous.
Chubb and its predecessor, ACE, have claims operations spanning continents, with specialised models dealing with property, monetary strains, disaster, and complicated protection litigation. They make use of claims examiners, technical specialists, and trainers throughout hubs from Jersey Metropolis to Philadelphia and Irvine. The corporate is actively hiring an AVP, Declare Coach in California and an AVP, Declare – Protection & Complicated in New Jersey—roles that contain making ready coaching supplies, presenting to senior administration, and growing litigation and determination methods. One other posting describes a Vice President, Studying & Growth, Declare Heart. It is a place accountable for coaching and growing Chubb’s North American claims professionals. Are the insurance coverage firm attorneys going to recommend that the coaching and procedures are handed down by phrase of mouth?
But, in discovery, Chubb’s counsel is seemingly telling courts that every one of this construction—the educational departments, coach positions, best-practice facilities—boils right down to seven pages of “steerage.” It’s an argument so strained it might snap a guitar string.
From a sensible standpoint, no trendy insurer might perform with out detailed claims procedures. Regulators, reinsurers, and auditors require documented requirements of efficiency. Market conduct exams routinely assessment “claims programs, procedures, and pointers.” To faux in any other case just isn’t solely implausible. As an alternative, it borders on misrepresentation if instructed to a choose. I’m not sure precisely what was instructed to the choose, however simply reporting on a colleague’s request for assist.
It’s additionally an moral downside. Any skilled insurance coverage protection lawyer is aware of that their shopper has written claims requirements, coaching applications, and operational manuals. To recommend they don’t exist in any respect invitations questions on candor {and professional} integrity. Legal professionals can argue privilege, confidentiality, or scope. However arguing nonexistence, when the proof of existence is publicly posted on the corporate’s personal careers web page, is a bridge too far.
This sort of litigation posture erodes belief and delays justice. Discovery fights like these aren’t about whether or not a doc exists. They’re about whether or not the reality can survive company discomfort. If insurers wish to boast about their world-class claims groups in job postings, they need to be able to admit in courtroom that these groups are educated from one thing extra substantial than a pamphlet.
For what it’s value, I’m not attempting to scold Chubb about this. Chubb is profitable my “fairest paying insurance coverage firm” survey, which I’ve been asking for suggestions on whereas giving my final a number of speeches. I doubt that they’re profitable as a result of they solely have a 7-page information for how you can deal with claims.
I’m attempting to convey to mild a recurrent downside: insurers and their protection counsel attempting to cover and misrepresent the extent of coaching supplies and even claims dealing with directives purposely not positioned in manuals. Most giant insurance coverage corporations have coaching departments with hundreds of pages of procedures. Most even have a whole lot of claims dealing with directions on a regional and crew foundation that don’t discover their method into manuals. I think that these are sometimes not deeply looked for when hard-nosed policyholder attorneys request them.
Thought for the Day
“Information don’t stop to exist as a result of they’re ignored.”
— Aldous Huxley
