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Program Development Services
Incident reports are individually reviewed for frequency and severity
trends to obtain a broad illustration of occurrence scenarios. Claims
activity is likewise reviewed for frequency and severity, noting that the
comprehensive risk management software employed by Knak & Company is capable
of complex trend analysis.
Prevention measures are developed once a trend is recognized. Relevant
materials are assembled and promptly issued to members for remedial
measures. Meetings are arranged with involved personnel to discuss the
rationale behind the recommended change.
Members also receive training toward the proper use of incident / accident
reports, as well as the use of and response to claim forms.
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Claims Management and Adjustment Services
The claims administrator personally reviews each claim the day it is
received at Knak & Company. A claim is opened both as a computer file and
paper file. The facts of the loss are developed to weigh coverage, liability
and damage issues. Reserves are input and an individual work plan is
assigned to each file. Communication channels are established via telephone,
e-mail, fax or mailed correspondence. Members receive handling instructions,
including user-friendly rationale, to expedite the claim process.
Claims involving excess or specialized coverage reporting criteria are
expeditiously submitted to the proper company for consideration. Reserves
set by the excess carrier are monitored to ensure accuracy.
Historically, the majority of all liability investigative work product is
completed by Knak & Company. Therefore, outside adjustment expense is kept
to a minimum, typically pertaining to auto appraisals and larger property
losses.
If liability issues are present, claims are evaluated and settled in a
timely manner, noting that NCSIG independent auditor Nick Cali found that
“Mr. Knak demonstrates a keen sense of urgency in regard to investigation,
disposition of adverse liability claims...” Further, the auditor commented
that “the vast majority of settlements to be in the low to middle range.”
He added, “Severity control by Mr. Knak is excellent.”
Claim payments are promptly issued on an “as needed” basis, not by a
batch system that creates unnecessary delay. Reserves and payment totals are
checked for accuracy each time a payment is applied to the claim file. The
auditor wrote, “Reserving philosophy and practice by Mr. Knak are
excellent.” He added, “It is very encouraging to see appropriate reserving
for expense on litigated claims.”
Knak & Company is fully bonded to handle public funds and is open to
either use the client's choice of
financial institution or Knak &
Company can offer an alternative
institution if requested. A monthly cash log and payment register are issued
to the client to document expenditures and justify the need for replenishment
funds.
In the event a claim value is in excess of the Knak & Company’s
discretionary authority, a written “request for settlement authority”
provides a clear and concise analysis of the liability, damages and
anticipated expense issues.
Appropriate releases are utilized with each and every settlement.
Clients receive written
notice when a file is closed, outlining expenditures made toward the file,
along with administrator comments.
If requested, Mr. Knak is always available to attend JPA board meetings.
In addition to answering any questions set forth by the participants, he
typically prepares and submits a “large loss” report in both written and
verbal form to illustrate the status of higher profile claims, as well as a
historical spreadsheet analysis.
In addition to “large loss” reports, members are apprised of all
statutory or regulatory changes that might affect client operations.
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Legal
Counsel Liaison Services
Knak & Company monitors all files assigned to legal counsel as a means of
implementing an appropriate defense strategy, reviews the discovery process,
addresses the need to change strategy if warranted, and audits billings to
ensure that the amount billed is justified by the related work product.
Mr. Knak is typically present at all settlement conferences and mediations,
remaining completely involved throughout the negotiation process. He usually
maintains control of settlement authority rather than giving complete power
to defense counsel.
Legal expense is a major factor toward the success or failure of a
client. With this in mind, Knak & Company oversees the litigation aspect of
our administration with a focused determination to achieve maximum results
from the financial resources allocated by the reserve process.
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Risk Management Training Services
Mr. Knak, who obtained his Associate in Risk Management designation in
1993, is keenly aware that loss prevention and loss reduction techniques are
a crucial element in the administration equation.
Over the years, he has met with clients to review operating procedures,
searching to identify exposures to mitigate potential claim activity.
Relevant materials are distributed to support the claims administrator’s
position and offer clear guidelines to remedy the adverse situation. Mr.
Knak then diaries his calendar ahead to review progress toward removing the
adverse exposure.
Mr. Knak actively
participates in training seminars and / or workshops when requested by his
clients.
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Management Reporting Services
The claims administrator enters data onto several screens, incorporating
comprehensive criteria such as loss date, loss type, loss location,
liability position, reserves, payments, recoveries, claimant background,
claim status, etc...
This relevant information is then formatted into monthly and
semi-annually paper reports based upon the needs and desires of the client.
The monthly open claim and payment reconciliation reports are mailed to
the client by the fifth day of the following month.
The large open / closed reports, generally run semi-annually, are
prepared and mailed within 14 days from the end of the period.
Customized reports are available at no additional charge. For example,
liability losses can be broken down into percentages for frequency and
severity to identify problem areas such as injury location and/or employment
practice exposures involving discrimination or sexual harassment.
Yearly actuarial audits have validated Mr. Knak’s unwavering goal for
100% accuracy at all times.
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Personnel Resources
Knak & Company, located in Redding, California, utilizes Mr. Knak as the
sole claims administrator, as well as a clerical assistant to expedite
miscellaneous tasks.
The company is committed to a lean organizational structure due to both
superior claims experience and a strong work ethic, resulting in competitive
pricing for a client without sacrificing quality.
In fact, current clientele have peace of mind knowing that their claims
are not randomly assigned to several employees within the firm who may work
a file one day and be gone the next, never knowing the idiosyncrasies or
needs of a particular client.
If a problem arises, a client will contact Mr. Knak. If he is out of the
office, a message is immediately conveyed to Mr. Knak via his
cellular telephone.
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Audit Services
The complete execution of the elements contained within the context of the
Client’s “scope of the audit” will be the basis to evaluate the claims
management work product and allow Knak & Company to package useful
information as to identified problems, suggested methods for possible
implementation to address the problems, and monitoring of future work
product to analyze if negative handling trends are either corrected over
time or continue to exist.
A computer spreadsheet will be utilized during the audit wherein each
selected claim will be identified on the spreadsheet with vertical columns
encompassing “Claim Number”, “Loss Date”, “Report Date”, “Open Date”,
“Reserves”, “Investigation”, “Documentation”, “Diary / Mail”, “Payments”,
“Legal”, and “Subrogation”. Comments below will include “File Summary”,
“Positives” and “Negatives”.
In addition, interviews with claims personnel will be expedited to
determine an overall perspective as to which organizational resources are
assigned to the account and whether the aforementioned resources are
adequate to both effectively service the Client’s program.
The audit findings will be compared with industry standards and placed
into a comprehensive written format, with the aforementioned computer
spreadsheets attached in the appendices.
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