The New Hampshire Insurance Department (NHID) has issued new guidance clarifying that automobile insurers using virtual claims adjustment systems must still provide in-person inspections upon consumer request, ensuring compliance with the state’s Unfair Claims Settlement Practices (UCSP) law.
A bulletin published by the NHID addresses the growing use of photo and video documentation submitted by consumers or repair shops as a substitute for physical inspections. While such systems can speed up the claims process, state officials caution they must not replace fairness or thoroughness in damage assessments.
“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 Insurance Commissioner DJ Bettencourt in a statement. “Additionally, Granite Staters should not be denied the right to an in-person inspection simply because they initially submitted photos or videos.”
Under the Unfair Claims Settlement Practices (UCSP) provisions of the state’s Unfair Insurance Trade Practices law (RSA 417:4, XV), insurers are obligated to promptly and reasonably investigate and settle claims once liability becomes clear. The NHID emphasized that virtual tools may not fully capture vehicle damage and that consumers retain the right to a physical inspection within a reasonable timeframe.
The bulletin also warns that failing to accommodate a timely in-person inspection could constitute a violation of the same law, which mandates prompt investigation of claims.
“Ensuring transparency and timeliness in the claims process is essential to protecting consumers,” said Deputy Insurance Commissioner Keith Nyhan. “These clarifications reinforce that insurers cannot rely solely on virtual tools if doing so limits a consumer’s right to a fair investigation.”
