VT| The Vermont Department of Financial Regulation REVISED Insurance Bulletin 206, expands prior guidance on virtual adjusting from auto claims to all types of insurance claims, emphasizing that while virtual tools can speed claim handling, they often fail to reveal the full extent of damage and therefore cannot replace an insurer’s duty to conduct a reasonable investigation and make prompt, fair, and equitable settlements under 8 V.S.A. § 4724(9)(D) and (F).
Key Points:
- Insurers must provide an in‑person inspection by a Vermont‑licensed adjuster within a reasonable time if requested by a claimant or whenever virtual adjusting is inappropriate, and they may not refuse such an inspection because a claimant initially chose a virtual process; unreasonable delays in arranging in‑person inspections may be treated as unfair claim settlement practices.
- For auto total loss claims, the Department clarifies that “actual inspection” in Regulation I‑79‑2 means an in‑person inspection by a Vermont‑licensed adjuster or appraiser, not merely review of photos or videos, and prohibits certain condition deductions (such as engine or transmission cleaning or tires meeting inspection standards), allowing condition deductions only for damage beyond normal wear and tear and requiring detailed documentation of any such deductions on the valuation report provided to the consumer.