any infringement of contracts they consider legal and that have been accepted as
legal contracts for more than 100 years.
Opponents of legislation argue there is no
substantive proof that AOBs cause fraud.
So, what’s an insurance
company to do?
•;First, re-direct;the;focus. Assignment
of Benefits provisions are not the problem — fraudulent companies are and
they will continue to exist and submit
fraudulent claims with or without any
restrictions on the assignment of benefits. Carriers should stop trying to fight
identify the companies that consistently
stopping the problem at its source.
have the largest financial impact on
the carrier. Bigger doesn’t necessarily
the stakes are highest if they hope to
keep the bottom line from bleeding
companies that have been shown to
submit inflated claims on previous oc-
their efforts on those companies.
• Identify suspect water mitigation
claims early and develop an efficient
internal structure to collect and dis-tribute;information.;Insurers;need;to
develop standard operating procedures
that facilitate early contact with the
insureds to authenticate the extent of
damages and to verify work performed
by water mitigation companies.
•;Develop;standard;questions;for;record-ed statements by adjusters in order to
determine the number of days mitiga-tion;actually;occurred;on;site,;confirm
how many employees and machines
were used, and how often they were
justers to investigate these claims so
they are sure to follow proper proto-
gators also must recognize that mitigation
the fraudulent mitigation company is like
tends beyond the mitigation company to
a much larger network — everyone from
lic adjusters and even insurance agents.
Many unscrupulous mitigation compa-
nies pay finder’s fees to plumbers and
insurance agents for profitable referrals
— passing on that expense to the insurer.
leaky pipes can easily earn four times or
more what he made on the job by telling
the customer there could be unseen water
recommends the mitigation company
paying him the finder’s fee. That compa-
-William “Bubba” Ryan, CEO
RYTECH- The Industry Leader in
Water Mitigation & Mold Remediation.
We Do It
That Will Never Change.
“Earning Your One Claim at a Time.
We do it better- and our Insurance
Industry Partners love us for
the money we save them and
the service we provide to their satisfied customers.
• Centralized Administration/ Call Center.
• IICRC, WRT and ASD certified field
production staff on every job.
• Controlling Severity, from Rapid Response
& Restoration to Cost Containment.
• RYTRAC In-Field Mobile
Communications – Provides
real-time overview to specific claims.