James%20Lea

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• James Lea
• Property Supervisor
• 225-342-8399
• James.Lea_at_La.Gov

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ORM Property Claims

• Blanket Property
• Boiler Machinery
• Employee Bonds
• Crime Policy
• Bridge Property Damage

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1st Party Vs. 3rd Party Claims

• First party claims involve our Insured Agencies
  and Employees.
• ORM is contractually obligated to cover 1st Party
  losses, unless the premiums are not paid.

• Third party claims involve individuals who are
  making a claim against one of our User Agencies.
• ORM is obligated to defend and indemnify claims
  against the User Agencies.

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What to do after a property loss or accident

• Notify ORM Claims Department using telephones,
  facsimile, electronic mail, or by traditional
  correspondence
• Mitigate your damages, or try to prevent
  additional damage to property
• Preserve evidence establish a chain of
  possession involving as few people as possible
• Photograph the damages when possible and
• Notify police and other authorities when
  appropriate.

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Employee Bond Policy

• Discovery Period for Loss We will pay only for
  covered loss discovered no later than one year
  from the end of the policy period.
• Duties in the Event of Loss After you discover
  a loss or a situation that may result in loss of,
  or loss from damage to, Covered Property you
  must
• Notify us as soon as possible.
• Submit to examination under oath at our request
  and give us a signed statement of your answers.
• Give us a detailed, sworn proof of loss within
  120 days.
• Cooperate with us in the investigation and
  settlement of any claim.

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Blanket Property Policy

• Duties In The Event Of Loss Or Damage
• You must see that the following are done in the
  event of loss or damage to Covered Property
• Notify the police if a law may have been broken.
• Give us prompt notice of the loss or damage.
  Include a description of the property involved.
• As soon as possible, give us a description of
  how, when and where the loss or damage occurred.

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Blanket Property Policy cont.

• Take all reasonable steps to protect the Covered
  Property from further damage, and keep a record
  of your expenses necessary to protect the Covered
  Property, for consideration in the settlement of
  the claim. This will not increase the Limit of
  Insurance. However, we will not pay for any
  subsequent loss or damage resulting from a cause
  of loss that is not a Covered Cause of Loss.
  Also, if feasible, set the damaged property aside
  and in the best possible order for examination.
• At our request, give us complete inventories of
  the damaged and undamaged property. Include
  quantities, costs, values and amount of loss
  claimed.
• As often as may be reasonably required, permit us
  to inspect the property proving the loss or
  damage and examine your books and records.

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Blanket Property Policy cont.

• Also permit us to take samples of damaged and
  undamaged property for inspection, testing and
  analysis, and permit us to make copies from your
  books and records.
• Send us a signed, sworn proof of loss containing
  the information we request to investigate the
  claim. You must do this within 60 days after our
  request. We will supply you with the necessary
  forms.
• Cooperate with us in the investigation or
  settlement of the claim.
• We may examine any insured under oath, while not
  in the presence of any other insured and at such
  times as may be reasonably required, about any
  matter relating to this insurance or the claim,
  including an insureds books and records. In the
  event of an examination, an insureds answers
  must be signed.

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Boiler Machinery Policy

• Duties In the Event of Loss or Damage
• You must see that the following are done in the
  event of loss or damage
• Give us a prompt notice of the loss or damage.
  Include a description of the property involved.
• As soon as possible, give us a description of
  how, when and where the loss or damage occurred.
  Allow us a reasonable time and opportunity to
  examine the property and premises before repairs
  are undertaken or physical evidence of the
  accident is removed. But you must take whatever
  measures are necessary for protection from
  further damage.

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Boiler Machinery Policy cont.

• Permit us to inspect the property and records
  proving the loss or damage. Also permit us to
  take samples of damaged property for inspection,
  testing and analysis.
• If requested, permit us to question you under
  oath, at such times as may be reasonably required
  about any matter relating to this insurance or
  your claim, including your books and records. In
  such event, your answers must be signed.
• Send us a signed, sworn statement of loss
  containing the information we request to settle
  the claim. You must do this within 60 days after
  our request.

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Boiler Machinery Policy cont.

• Cooperate with us in the investigation or
  settlement of the claim.
• We may examine any insured under oath, while not
  in the presence of any other insured and at such
  times as may be reasonably required, about any
  matter relating to this insurance or the claim,
  including an insureds books and records. In the
  event of an examination, an insureds answers
  must be signed.

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Crime Policy

• Discovery Period for Loss We will pay only for
  covered loss discovered no later than one year
  from the end of the policy period.
• Duties in the Event of Loss After you discover
  a loss or a situation that may result in loss of,
  or loss from damage to, Covered Property you
  must
• Notify us as soon as possible.
• Submit to examination under oath at our request
  and give us a signed statement of your answers.
• Give us a detailed, sworn proof of loss within
  120 days.
• Cooperate with us in the investigation and
  settlement of any claim.

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How to File a Claim

• Fax, phone or email reporting is preferred.
• ORMs website does not contain any Property Loss
  reporting form, but the CGL form can be used
  instead.
• We need to know who, what, when, where and how.
• Each line of insurance coverage, or type of claim
  is different, and has different reporting
  requirements.

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Date of Loss Vs. Discovery Date

• Most claims are based upon the date of loss.
• Most claims expire or prescribe 12 months after
  the date of loss.
• Most losses can be reported anytime during this
  12 month prescriptive period, but should be
  reported as soon as possible.

• Employee bond claims are based upon the date of
  discovery.
• The employee bond policy requires that the claim
  be reported within 90 days of the discovery date.
• The suspect employee must be identified when the
  loss is reported.

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How Claims Are Processed

• The very first activity that an adjuster should
  accomplish upon receiving a new claim is to
  verify coverage. In the private world, that
  means finding the policy number, and making sure
  it has not been cancelled. If there is any doubt
  about coverage, a reservation of rights letter
  may be issued to the Insured.

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Prompt Set-up of Claims

• ORM Policies Procedures require that all new
  claims be entered into our computer system and
  acknowledged to the User Agency within 72 hours
  of receipt.

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STARS

• Previously, we could establish a claim number
  without entering the claim into the computer, but
  now all claim references are determined by our
  computer system, STARS.

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Independent Adjusters

• Over the years, our procedures for investigating
  claims have changed, especially in regard to the
  use of Independent Adjusters. Twenty years ago,
  we were required by our Excess Carriers to use
  certain independent adjusters under specific
  circumstances. During the past several years, we
  have assigned fewer and fewer claims to
  independent adjusters.

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Purchasing Rules

• Simply because ORM will be the funding source,
  does not mean that a User Agency can ignore
  Purchasing Rules that govern their particular
  Agency. ORM Claims Adjusters never generate
  Purchase Orders, and never authorize any repairs.
  Only the owner or custodian of the damaged
  property can authorize repairs.

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Proof of Ownership

• In the past, it was easy to document ownership,
  acquisition cost, and date of purchase by
  providing a copy of the Property Control
  print-out on each Content item, but now only
  those items that initially cost more than 1,000
  are required to be tagged and entered into
  Protégé. Now we often have to use old Purchase
  Orders or Vendor Invoices to document ownership
  and original cost details.

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All damaged items should be labeled or tagged
with the correct ORM claim number before being
sent to Louisiana Property Assistance
Administration (LPAA) for disposal as any salvage
received from auction is supposed to benefit ORM,
and thereby reduce the net claim amount, which in
turn reduces the User Agencys future premiums.
Salvage
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SLABS

• If a building is severely damaged, we utilize
  the State Lands Buildings System (SLABS) to
  determine the value of the building. This is why
  we ask for the Building ID number.

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Depreciation

• All moveable property, as opposed to real
  property, is subject to depreciation. Theft of,
  and damage to computer equipment involves a large
  portion of our claims. Nearly all computer
  equipment depreciates over a three year period,
  or 33 each year. DOTD seems to use a 20 year
  depreciation scale for mobile equipment, but we
  rely upon vendors and dealers to develop current
  market values.

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Vendors-Reimbursements

• If a User Agency wants to be reimbursed for
  repairs or replacement of damaged property, the
  Agency must provide proof of payment However, if
  the Agency wants ORM to pay the vendor, we simply
  need payment instructions from the Agency. Of
  course W9 tax forms are now required before ORM
  can issue any payments.

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