New Hampshire Regulates Use of Technology in Auto Claims, Property Underwriting

The New Hampshire Insurance Department (NHID) has issued a bulletin clarifying insurers’ obligations when using virtual claims adjustment systems to assess automobile damage.

That guidance came in response to a growing number of insurers relying on photo and video submissions from consumers or repair shops rather than conducting in-person inspections.

“The implementation of virtual claims systems can improve efficiency, but it must not come at the expense of fairness or thoroughness in the claims process,” said DJ Bettencourt, insurance commissioner. “Additionally, Granite Staters should not be denied the right to an in-person inspection simply because they initially submitted photos or videos.”

According to a press release, under the Unfair Claims Settlement Practices (UCSP) provisions of the state’s Unfair Insurance Trade Practices law (RSA 417:4, XV), insurers are required to promptly and reasonably investigate and settle claims fairly once liability is clear.

The bulletin states that while virtual adjustment tools may help settle claims faster and reduce costs for insurers, photographs and videos do not always capture the full extent of a vehicle’s damage. To comply with the UCSP, carriers must offer an in-person inspection of a damaged vehicle within a reasonable timeframe if the consumer requests one.

Insurers may not deny such a request based solely on a consumer’s prior participation in a virtual assessment, the bulletin said. Unreasonable delays in providing requested in-person inspections may also constitute a violation of the duty to promptly and reasonably investigate claims under RSA 417:4, XV(a)(3).

“Ensuring transparency and timeliness in the claims process is essential to protecting consumers,” said Keith Nyhan, deputy insurance commissioner. “These clarifications reinforce that insurers cannot rely solely on virtual tools if doing so limits a consumer’s right to a fair investigation.”

Aerial Imagery

The state’s guidance on auto claims adjusting comes after the department’s February guidance on insurers’ use of aerial imagery in property insurance underwriting, particularly regarding decisions to refuse to write or renew policies based on roof condition.

The department said recent complaints indicate that some property insurers have relied on aerial imagery to justify non-renewals based on mistakenly identified roof conditions. The February bulletin reaffirmed that while insurers may refuse to write or renew policies due to clear evidence of property degradation or damage, they may not do so solely based on cosmetic issues such as roof discoloration.

If aerial imagery does not conclusively demonstrate roof degradation or damage sufficient to justify refusal to write or renew a policy, insurers must conduct a follow-up physical inspection to verify their findings. Additionally, if an applicant or insured disputes the insurer’s determination—even when the insurer believes the aerial imagery to be conclusive—a physical inspection is required.”

Topics Auto Claims Underwriting Tech Property