2008 Annual Conference

Boutwell & Associates, LLC Anne Davis, CPCU, AIC State Farm Insurance Ryan DeMolli Afni, Inc. Candace M. Boutwell Boutwell & Associates, LLC 2

An Insurance Company’s Perspective How You Structure is Important Structure your organization effectively to maximize recovery potential from uninsured parties. Leverage your size and referrals to vendors to handle your business.

Identify Effective Vendors Use the right type of vendors in the right locations. Do the vendors provide all of the services you’re looking for? Conduct performance evaluations.

Investigate, Investigate, Investigate Do a thorough investigation on the front end to identify: Does another insurance carrier exist? Get as much information about the uninsured party as you can. Obtain important information such as police reports. Ensure you have a solid analysis of liability.

Use Your Legal Resources Can we suspend the driver’s license of the uninsured party? How can we leverage our information to get the party to pay us? Know your state laws and regulations. When do you need a judgment?

Pick Your Vendor Pick the right vendor….. Do you need: A Collection Agency Firm? A Collection Litigation Firm? An Attorney?

“How to Make ‘Em Pay” Locating the Claimant Notifying the Claimant Contacting the Claimant Educating your staff Following Through

Locating the Claimant The ability to locate the claimant is the single most important step in collecting from the claimant. Ways to locate the claimant Search engines Internet Skip Vendors Batch skip tracing Human skip tracing If you are unable to locate the claimant either and address or a phone number you will not be able to collect. 9

Using Technology Using Technology to contact the claimant. Dedicated letter and phone call strategy when an account is loaded into the system. Be persistent, be in their face. Don’t let returned mail deter you. Using technology to your advantage. - Don’t wait get the process going - The sooner you initiate the process the greater the likely hood that you have of contacting the claimant. - Having the accounts that come back returned mail skipped in a batch process quicker / faster. - Example of an account, returned mail disc phone, located new info sent more letters and located new phone then they paid. 10

Using Technology Reducing the time frame in which you contact a claimant. Increasing the turn rate or number of times an account can be touched within a defined period of time. The quicker you can locate and contact a claimant the greater the probability will be that the claimant will pay. Focused calls and letters to make the claimant call in. The more you can contact a consumer early on the greater the chance you have at collecting on the account. The older an account is the less likely a consumer will pay. - They move, address is bad. - Phone number changes.

Notifying the Claimant Automated Letter series Types of letters Initial notice coupled with letter to the Department of Transportation. No contact letter if no response on first notice. Settlement letters, offering a reduced payoff. Default Letter to the State if installment agreement is defaulted. Pre Litigation notices. Letters that go out systematically and you don’t have to make sure they are being sent. Making sure that the Secretary of State is put on Notice of their lack of financial responsibility. 12

Contacting the Claimant Making phone calls Automated Dialer Unattended messages Manually dialed calls Automated dialer system Varies the time of day a claimant is called Daily schedule Weekly schedule Multiple attempts per day if unsuccessful Calling cell phones 13

Educating your Staff Proper training is key to successful collectors. Negotiation skills Using money sources Using benefit statements State Laws Compliance Moment of truth, is when you have the consumer on the phone. Doing 3 things on each call Urgency – setting the tone of the call Letting the claimant up front know of the expectations Control – maintaining control of the conversation Don’t let them get what they want Persistent – using professionalism to obtain the desired outcome. Letting the claimant know the claim is not going away. Closing the deal 14

Educating your Staff Suspending the claimant driver’s license when applicable. Knowing the state laws and using them to your benefit. What types of Installment agreements to send When to send the Default to State Letter. Ensuring medical is included if it is pending. When speaking to a consumer being credible can be key in closing the deal. Consumer from Montana

Pre Litigation Informing the claimant that failure to pay may result in litigation. Ensuring the statute is protected. Unfortunately not all claimants are going to pay, When all else fails litigation may be the only course of action to pursue. 16

MAKE 'EM PAY AN ATTORNEY'S PERSPECTIVE Scare 'Em Sue 'Em Stalk 'Em NOTE: Just kidding! 17

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Scare 'Em Demand Letter Key Components: Offer Promissory Note Provide consequences if judgment is rendered 18

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Scare 'Em Promissory Note Key components Offer the payment arrangement you want Make the payment size reasonable Explain consequences for defaulted payments 19

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Scare 'Em Credit Card Authorization Form Give the claimant the option of monthly payments via credit card 20

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Scare 'Em Demand Letter Promissory Note Credit Card Authorization Form Telephone Calls BEWARE OF THE FAIR DEBT COLLECTION PRACTICES ACT 21

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Sue 'Em Consent Judgment Default Judgment Judgment After Trial 22

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Stalk 'Em Record the Judgment Suspend the Driver's License Garnish the Wages Post-Judgment Interrogatories and/or Request for Production Motion to Compel Motion for Contempt Warrants BEWARE: The above could lead to calls in the middle of the night about the arrest of your claimant 23

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE Stalk 'Em Record the Judgment Suspend the Driver's License Garnish the Wages Post-Judgment Interrogatories and/or Request for Production Demand Letters Telephone Calls 24

MAKE 'EM PAY—AN ATTORNEY'S PERSPECTIVE CONCLUSION The laws are different in every state and some of the suggestions discussed may not apply. Every state has differing ethical considerations that will need to be taken into account along with the state and federal requirements of the Fair Debt Collection Practices Act. 25