Citizens Claims Committee Meeting 04/07/06
Jan 10, 2007
The Citizens Claims Committee (“Claims Committee”) held a meeting on April 6, 2006 during which the following topics were discussed:
The possibility of running Florida Crime Information Center (“FCIC”) and National Crime Information Center (“NCIC”) criminal background checks on its roster of licensed Independent Adjusting and Quality Assurance (“IA and QA”) firms in an effort to more accurately identify prior criminal history. The FCIC and NCIC report arrests and other additional information on a person�s background report, as opposed to other reports which only list criminal convictions. Citizens needs to determine if it has the authority to conduct such criminal background checks.
How to select IA and QA firms that are eligible to enter into a claims contract with Citizens. A score of 50 or higher is the threshold for eligibility and, upon reaching that threshold, Citizens must take into account factors in addition to the raw score.
LYNX�s performance last year and how Citizens evaluates LYNX�s performance, in light of a proposed agreement under consideration by Citizens. It was suggested that Citizens expedite its evaluations of LYNX, which may not have been prepared to handle the volume of claims filed after last year�s storm season. The Claims Committee also discussed shorter time frames for the proposed agreement regarding First Notice of Loss, and perhaps reducing the current 30-day requirement to 15 or 10 days� notice.
The large amount of administrative fees paid to AYO (Adjust Your Own) companies.
The Citizens Audit Committee (“Audit Committee”) also met on April 6, 2006 and discussed the functions of the internal audit committee and how it interacts with external auditors. One Committee Member emphasized process over size, and explained that an audit committee can be comprised of one person or fifty, so long as the procedures undertaken by that audit committee are sound. Emphasis was also placed on the importance of an auditor knowing the industry in which the corporation operates in order to assure an accurate audit.
Recently, Citizens has conducted three internal audits and another audit was conducted by an outside auditor. A fifth audit, conducted by Citizens� internal audit committee, is underway.
Except for one item relating to the timing of audits, which will be reviewed and reconsidered at a later date, the Committee voted to accept the internal audit plan.
Regards,
Erin Treacy