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Thou Shall Confirm Coverage 

How to Confirm Coverage 

When I was a young adjuster, I worked for the Fireman\\u2019s Fund Insurance  Company. Occasionally confused insureds and brokers would report to the  Fireman\\u2019s Fund a claim meant for Fireman\\u2019s Insurance of Newark. The  claim would often be adjusted and paid before anyone realized an error  had been made. Notice provisions in insurance policies serve the important function of  allowing the insurer the opportunity to make a timely and thorough  investigation of the insured\\u2019s claim. American States Insurance Co. v.  National Cycle, 260 Ill. App. 3d 299, 310-11, 631 N.E.2d 1292, 197 Ill.  Dec. 833 (1994); Twin City Fire Insurance Co., 266 Ill. App. 3d at 7. When a loss or claim is reported to an insurance company the first task  required of the insurer and its claim personnel is to confirm the  existence of a policy. The task today is much simpler than it was when I  was an adjuster where we had to pull out the actual underwriting file  and review the daily report. Now, coverage can be confirmed by computer.

If the insurer\\u2019s computer system shows that a policy was in effect at  the time the insured reported that a loss occurred, the first step of  confirming coverage was completed. Next, if available digitally, the  entire policy must be accessed including the declarations page and all  policy wordings, all endorsements and modifications to the standard  policy language.  For example: 1. If the policy is a property policy that insures the insured against  the risk of loss of a dwelling by fire, lightning, windstorm and hail,  and nothing more and the insured reports a claim for damage caused by  earthquake the existence of a policy is confirmed but the existence of  coverage is not.