What is a loss run, who can request one and how long does the insurer have to send it?

What is in a loss run?

Florida’s statute gives a usable definition: a report that contains the policy number, the period of coverage, the number of claims, the paid losses on all claims and the date of each loss. It does not include the claim file, investigation reports or adjusters’ evaluations.

New York’s commercial lines law describes the same thing as loss information: closed claims with the date and description of the occurrence and any payments, open claims with the amounts of any payments, and notices of occurrences that have not become claims.

States differ on reserves. Florida says an insurer is not required to provide loss reserve information, while California’s loss history report lists claims with total incurred and paid losses. So read what arrives before forwarding it. Check that every policy term asked for is there, that the date the figures were valued is shown, and that open claims are marked as open. A new insurer will usually want loss runs from each prior insurer for the years it is rating, and how recent they must be is the underwriter’s call.

Who can ask, and how long does the insurer have?

What do those rules leave out?

They are four examples, not a survey. Each has limits. California’s section applies to commercial policies other than professional liability, and not to a policyholder who already has direct, ongoing access to claims information. Oregon’s rule covers commercial policyholders and makes a violation an unfair trade practice. New York’s sits in its commercial lines cancellation and renewal law and lets the insurer charge a reasonable fee for information provided on request.

Three of the four call for a written request. All four give the right to the insured, or to the insured’s own agent or broker. A prospective agent who does not yet represent the account should have the insured sign the request.

For any other state, find the statute or the insurance department’s rule before quoting a deadline to a client. Where there is no rule, the timing is whatever the insurer’s service standard is, and the request needs chasing.

How do you track a loss run request to done?

• Record the date the request was sent, to whom, and how. Keep the written request and proof it was sent, because the deadline runs from receipt.
• List every insurer, policy number and policy term needed. One renewal can mean several requests.
• Set a due date from the state rule where there is one, and a follow-up date before it.
• When a report arrives, check it against the list: every term present, valuation date shown, open claims identified.
• Mark what is still missing and who has to supply it. A request with one of four loss runs outstanding is not done.
• Close it only when the complete set has gone to the person who needed it, and note the date.

Related questions

Is there one national deadline for loss runs?

No. It is set by each state. Florida and Oregon allow 15 calendar days, New York 10 days, and California 10 business days in the situations its statute lists. Check the rule for the state that governs the policy.

Can an insurer charge for a loss run?

It depends on the state. Florida bars a fee for one loss run statement a year. New York allows a reasonable fee for loss information provided on request.

Does a loss run show reserves?

Not always. Florida’s statute says an insurer is not required to provide loss reserve information. Read each report to see whether open claims show reserves or only payments.