The New Hampshire Insurance Department (NHID) has issued a bulletin that it says is meant to clarify insurer obligations when using virtual claims adjustment systems to assess automobile damage.

The guidance comes in response to more insurers relying on photo and video submissions from consumers or repair shops rather than conducting in-person inspections, an NHID press release states.

“The implementation of virtual claims systems can improve efficiency but it must not come at the expense of fairness or thoroughness in the claims process,” said Insurance Commissioner D.J. Bettencourt, in the release. “Additionally, Granite Staters should not be denied the right to an in-person inspection simply because they initially submitted photos or videos.”

Under the Unfair Claims Settlement Practices (UCSP) provisions of 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.

While virtual claims adjustment systems may help settle claims more quickly and reduce costs for the insurer, photographs, and videos do not always reveal the true extent of the damage a vehicle has sustained,” the bulletin states. “Consequently, to comply with the UCSP, insurers must provide an in-person inspection of a damaged vehicle within a reasonable period of time if requested by the consumer. Insurers may not deny a consumer’s request for an in-person inspection on the grounds that the consumer initially elected to use a virtual adjustment system.”

Unreasonable delays in providing requested in-person inspections may also violate the duty to promptly and reasonably investigate claims under RSA 417:4, XV(a)(3).

“Ensuring transparency and timeliness in the claims process is essential to protecting consumers,” said Deputy Insurance Commissioner Keith Nyhan, in the release. “These clarifications reinforce that insurers cannot rely solely on virtual tools if doing so limits a consumer’s right to a fair investigation.”

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