CHO Audits

It appears by recent audit results that the CHO auditors have been given their instructions to take as many overpayment exceptions as possible on auto damage adjusters' estimates. Just for full disclosure, as of right now, an auto damage adjuster missing damage on an estimate is NOT an exception. You can probably guess how this appears on its surface; GEICO doesn't care if its adjusters underpay estimates (actually illegal), but it REALLY cares when its adjusters overpay estimates.

Undoubtedly this approach that GEICO has taken is multi- purpose. The first and most obvious is to save money on estimates. If they can punish and terrorize auto damage adjusters with disciplinary action up to and including termination or at the very least withhold pay increases and promotions for writing estimates "not in line with company standard" then GEICO has saved money in two areas now. The second purpose would be that this new hostile audit approach will be so intolerable for adjusters that they will quit (or will be terminated for performance).

Some things I want to point out about these recent audits is that they differ from audits in the past. Currently, auditors are taking exceptions based upon knowingly incorrect parts data (ie, knowing a vendor is listing an incorrect price in our database but ignoring that and taking an exception anyways stating the adjuster should have selected the fake part/fake priced part), taking exceptions for required operations such as pre and post scans because an adjuster didn't write an acceptable note justifying a scan (has been an industry standard for at least the past 5 years), and are now requiring written explanation for parts replaced on estimates or the part will be taken as an exception (ie the bumper is torn in half, you didn't write a line note that the bumper is torn in half, so technically we shouldn't have paid for anything). As another reminder, missed damage does not count as an exception.

I know of no Policy in force or any legislation or regulations that state that an insurance company only owes to pay for damages if the line notes on the estimate are sufficient to a subjective internal review; otherwise there is no coverage.

To all of the adjusters that are now being victimized with this unabashed behavior should save all of the reinspections they receive and also all of the emails regarding any of thedisputes to the unfair and unethical exceptions to their estimates, some of which are listed above.

I'm sure if you were to be termed for poor estimatics or whatever reason GEICO would like to invent regarding this topic, that your state's department of insurance (and for those in all the states you deal with in your claims as well) and your state's attorney general would love to know about the information you have regarding GEICO's willful underpayment of claims, which then resulted in your termination!