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Notice: Nothing in this manual is intended, or should be interpreted or construed, as a modification, change or waiver of the provisions of any policy of insurance issued by either company. Neither do employees of the Wayne Insurance Group Claims Department, without the approval of the Vice President-Claims, have the authority to modify, change or waive the provisions of any such policy of insurance. Where any of the provisions of this manual conflict with the terms of any such policy, the terms of the policy control.




Summary and Purpose . . . .. . . 1

Authority . . . 1

Contact Persons . . . .. . . 1

Payable Claims . . . 1-2 Specific Requirements Before Issuing a Check . . . .2-4 Claims Adjustment . . . 2-3 Auto and Casualty Claims . . . . . 2-3 Property Claims . . . . 3

Estimates . . . 3

Deductibles and Rental Reimbursement Limits . . . .3-4 Lienholders . . . 4

Salvage/Subrogation . . . 4

Federal ID Numbers . . . 4

Procedure for All Losses . . . 5

Supplements/New Features. . . 5

Stop Payments . . . 5

Spoiled or Void Checks . . . .. 5

Suggestions . . . .. . 5 Depreciation Guide. . . .6-10


Summary and Purpose

The Wayne Insurance Group provides limited check-writing authority to selected agents to enable the company-agency partnership to provide the best possible claims service to its

customers--the policyholders--by promptly paying meritorious first and third party claims at the agency level.


Agents may pay meritorious first and third party claims under the guidelines contained in this manual up to $5,000.00 per claim. This limit applies to each feature under each occurrence or accident. Payment may be issued regardless of whether or not you have previously reported the claim to us.

Example: The insured runs a red light and hits the claimant, who has a PD claim of $2,200.00

and a BI claim. The insured has a collision coverage loss of $1,750.00. You may issue a check on both the Collision and PD claims as they are separate “features”.

Multiple drafts for the same feature may be issued only with our prior approval.

Note: Agency principals are responsible for advising us as to which personnel in their agencies

are authorized to sign our checks. The issuing of a check by a person whose name has not been sent to us may result in a rejection of that check by our bank and serious inconvenience to all parties.


VP-Claims Dave Tschantz—Extension 322

Claims Manager Joel Grassman—Extension 338

Claims Adjuster Steve Forney—Extension 332

Managing Attorney Ed Dark—Extension 352

Claims ClerkSupervisor Julee Forney—Extension 328

Claims Clerk Kayla Raines—Extension 316

Auto Damage Appraiser Stacy Wilson—Extension 347

Claims Department Toll-Free Fax Number: 888-345-8775

Payable Claims

Personal Auto (Wayne only)



Other Than Collision Towing

Rental Reimbursement



(Note--This applies regardless of whether or not a Bodily Injury claim has been or will be made.)


Insured- Dwelling Other Structures Contents Scheduled Items

Additional Living Expenses

Claimant-(Wayne only)

Property Damage (Including any rental charges)

(Note--This applies regardless of whether or not a Bodily Injury claim has been or will be made.)

Specific Requirements Before Issuing a Check

Claims Adjustment

Auto and Casualty Claims (Wayne only)


This coverage applies if the insured vehicle makes physical contact with another vehicle, or an object that is in contact with the road or ground, or is upset. A tow bill incurred to move the insured vehicle to the nearest place of safe haven is part of the Collision Coverage claim.

Other Than Collision-

This coverage applies for physical loss to the insured vehicle not listed under Collision Coverage. A tow bill incurred to move the insured vehicle to the nearest place of safe haven is part of the Other Than Collision claim.

Radar detection equipment is excluded from both of the above coverages.

Property Damage-

Payable through this program only if100% clear liability exists for the claimant’s damageson thepart of our insured. Before issuing a check, ensure by consulting the policy, that coverage is not voided, due to the applicability of one or more auto

liability exclusions. If in doubt, do not issue the check without consulting with us. PD rental does not include charges for mileage and insurance.

Towing and Labor Coverage-

If the insured hasthis coverage, you may pay for: 1) Mechanical labor at the place of disablement. 2) Towing to the nearest place of safe haven.

3) Cost of delivery of any part or substance necessary to move the vehicle, but not the cost of the part or substance itself.


Property Claims

Personal Property Replacement Cost Claims (applies only if Replacement Cost Coverage has been

purchased)-Property which costs $500.00 or less to replace (and isn’t repairable) may be paid without proof of actual replacement.

Property which costs more than $500.00 to replace (and isn’t repairable) will be paid at actual cash value until proof of actual replacement has been submitted. The insured has 180 days from the date of loss to do this.

Theft and Vandalism Claims-

We require that a police report be made by the insured on all claims submitted for payment under this coverage, but we do not automatically need a copy of the report. If we determine that we need one, we will request it directly from the investigating agency.


Since this is dwelling coverage only, there must be exterior damage to the roof before coverage due to the windstorm peril is applicable.

This does not apply to Wayne policies with the HO-3 or ML-3 forms, or to Washington policies with the HE-98 endorsement.

Scheduled Items-

Please call us before issuing payment.


Be sure to apply the depreciation outlined in the attached schedule on all of the above property claims.

Additional Living Expenses-

Thisshould be paid on an emergency basis only. However, if a bona fide emergency exists and the insured requires our assistance in obtaining adequate temporary

housing, we strongly encourage you to use this authority to assist our insureds and their families.


Auto and Property Casualty-(Wayne only)

Only one estimate or repair bill is required for Collision and Other Than Collision claims of under $750 after the applicable deductible is taken. If, after the applicable deductible is taken, the claim totals more than $750, then two estimates are required for payment under this program. Only one estimate, receipt or bill is required for payment of Towing and Rental Reimbursement claims.


Deductibles and Rental Reimbursement Limits (Wayne only)

Property and Auto Collision and Other Than Collision-

Deductibles listed in the policy declarations must be taken before a check is issued.

Auto Rental Reimbursement-

Our policies provide a maximum per day payment of $20 in “included” rental

reimbursement coverage when a vehicle is rented from a rental agency, with a limit of $600.

Example: If the insured has a rental car rented from a rental agency for 12 days, and

is being charged $27 per day, our payment will be $240.

Note that our policies only provide $10 per day in “included” rental reimbursement coverage when a vehicle is rented from a private individual, with a limit of $300.

Example: If the insured has a rental car from a private individual for 12 days, and is

being charged $27 per day, our payment will be $120.

If an insured has rental reimbursement coverage listed in the declarations for which he or she has paid a specific premium, the daily and per claim limits specified in the policy apply.

If in doubt, consult the policy or call us.


Determine whether or not a lienholder exists for the insured property. If a lienholder exists, we

are required by law to protect that lienholder’s interest. Therefore, you cannot make the

check payable to just the insured when there is a lienholder. You must put either the lienholder or the repairing shop/contractor on the check along with the insured’s name.

Exceptions to this policy may be made with our prior approval only.


Claims involving salvage or subrogation may be paid under this program, but should be discussed with us prior to the issuance of the check.

Federal ID Numbers

Whenever a check is made payable to a shop/contractor you must include that shop/contractor’s

Federal ID Number (FID) on the check, unless the shop/contractor is a corporation. If the

shop/contractor is a corporation, the FID does not need to be on the check. If you do not have the FID, or the FID is not printed on the bill or estimate, call us and we will give it to you, if we already have it in our records. If we do not have the FID the claim is not eligible for payment under this program, unless you first obtain a signed W-9 form from the shop/contractor. This should be faxed to us along with all claim documents for inclusion on our data base. We will provide you with the necessary W-9 forms.

Do not put the contractor’s Social Security Number on the check! We have discontinued this practice.


Procedure For All Losses

1) For previously unreported claims, first complete the appropriate Acord form. 2) Verify coverage. If necessary, call us.

3) Review the bill(s) or estimate(s). If something doesn’t look right, call us.

4) Complete the check. Be sure to fill out all relevant boxes. Remember, if you are paying a shop/contractor, and they are not a corporation, you must not issue the check without noting the FID.

For insured claims involving repairs to insured property, you must put both the

shop/contractor’s and the insured’s name on the check. An exception to this requirement is where the insured has a Collision or Other-Than-Collision Coverage claim and wishes to discontinue that coverage. You should fax the change form deleting that coverage along with the other documents faxed in accordance with 5) below. Other exceptions must be discussed with us.

5) Fax the Acord form, check copy and all relevant bills/estimates to us at (888) 345-8775. If your fax machine isn’t working, or any other circumstance prohibits you from

complying with this requirement, call us as soon as possible.

You need not mail us the original copies unless we call and ask for them. 6) Retain one copy for your records and leave one copy in the book.

7) Note the transaction on your check register.

Supplements/New Features

Supplements to previous payments should be discussed with us before a check is issued. If the payment is for a new feature under a claim already paid and reported, use the same procedure but be sure to note that fact prominently somewhere in your fax to us. Include the claim number on the check if it is available in your records.

Stop Payments

If you need to stop payment on a check, call us immediately.

Spoiled or Void Checks

If you need to void a spoiled check, simply write “VOID” across it in large letters and fax a copy to us. Mail the voided check to us in your regular mail. Retain both copies and note the action in your check register as described above.


Your comments and suggestions for improvement of this program are welcome. Please contact us if you have an idea that you believe would help us improve this program.