Virtual Adjustment of Vehicle Claims

The State of New Hampshire Insurance Department 21 South Fruit Street, Suite 14 Concord, NH 03301 David J. Bettencourt Keith E. Nyhan Commissioner Deputy Commissioner BULLETIN Docket #INS 25-031-AB TO: New Hampshire Motor Vehicle Insurance Carriers FROM: Commissioner David J. Bettencourt DATE: April 14, 2025 RE: Virtual Adjustment of Vehicle Claims The Department has seen an increase in the use of virtual claims adjustment systems that require the consumer (insured or claimant) or the consumer’s automobile repair shop to submit photographs or videos to the insurer in lieu of having the insurer assess the damage in person. This Bulletin clarifies the insurers’ obligations under the Unfair Claims Settlement Practices (“UCSP”) provisions of the Unfair Insurance Trade Practices law. See RSA 417:4, XV. The UCSP requires insurers to promptly and reasonably investigate claims. See RSA 417:4, XV(a)(3). It further requires insurers to effectuate prompt, fair and equitable settlements or compromises of claims in which liability has become reasonably clear. See id. at XV(a)(4). 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. 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. Further, unreasonable delays in making in-person inspections may also be considered a violation of the UCSP if it rises to the level of an RSA 417:4, XV(a)(3) (duty to promptly and reasonably investigate) violation. Telephone 603-271-2261 • Fax 603-271-1406 • TDD Access: Relay NH 1-800-735-2964 nh.gov/insurance Contact Information For any questions or concerns regarding this bulletin, please contact the Property and Casualty unit of the New Hampshire Insurance Department by email at propertycasualty@ins.nh.gov or by telephone at 603-271-2261. 2