The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance claims, the basic insurance policies used by the insurer, and assigned to handle minor insurance claims. I had no difficulty with the reading since I was a college graduate and had simultaneously enrolled in a night law school.
After I had learned the basics from the reading and assistance of an experienced claims supervisor I was sent to ride along with experienced adjusters in every type of insurance sold by my employer. I rode, and learned from, a surety adjuster, a workers’ compensation adjuster, first party property adjusters and third party liability adjusters. I was then sent to the insurer’s home office for a full month of classroom training on everything from the effect of traumatic injuries, reconstruction of fire, wind, or water damaged structures, tort law, contract law, and insurance policy interpretation.
After completing the classroom training I was allowed to deal with small claims by telephone under the very close supervision of an experienced claims supervisor and the claims manager.
Eventually I convinced my supervisor that I knew the basics of the insurance claims business, how to investigate a claim, how to interview an insured and independent witnesses and how to evaluate a claim. I was assigned a company car, a Nash Ambassador, and claims to handle in person from small water damages, kitchen fires, and other small claims until my abilities improved and I was able to handle a major claim with the assistance of the manager, supervisor and experienced staff adjusters and consultants. I was also able to apply to my claims work with what I was learning in law school.
It took me more than a year of intensive training and education to be classified as a field claims representative. I was, with the training and experience provided to me, a professional claims adjuster and worked as one until four years later when I passed the California Bar and became a licensed attorney.
Today, I’m much older, worked for five years as an adjuster, and 45 more years as an insurance defense lawyer and insurance coverage lawyer. I have, since 2015, worked as an insurance consultant and expert witness, a blogger, and an author on claims handling, insurance coverage and the tort of bad faith.
Becoming a Claims Expert Witness
After 45 years of practicing law a lawyer I knew asked me to be an expert in one of his cases. I had retained many experts in my legal career but this would be my first time testifying to a federal jury with a judge who would have preferred a different case. Although I was frightened on my first attempt I found I was good at explaining insurance and insurance claims handling to a judge and jury. My first attempt – whether because or in spite of my effort – resulted in a verdict in favor of the lawyer client.
In 2015 I was exhausted at operating a law firm and reduced the firm to just me and a computer. I changed my practice as an insurance consultant and expert the only thing I do. My license to practice law is inactive.
Claims experts are retained by lawyers who are litigating an insurance claim dispute after the litigation commences. I am retained by both insurance defense lawyers and policyholder’s lawyers. I have learned that the adjusters who dealt with claims when I did have either retired or died. I now see the work of inexperienced, minimally trained and often incompetent insurance adjusters because their work, or failure to work, were involved in situations that caused the insurer for whom they worked, get sued.
Today I spend most of my time reviewing claims files from counsel litigating insurance claims disputes, write this daily blog, write and update insurance claims books, and testify as an expert witness on behalf of counsel for policyholders and insurers.
Part 2 will deal with the Modern American Claims Adjuster.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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See the full video at https://lnkd.in/gWQQEySW and at https://lnkd.in/gyhdK6wv
This is a Fictionalized True Crime Story of Insurance Fraud explaining why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is one of a collection designed to help to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the Perpetrators than any Other Crime.
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After ...
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LAW:
The ...
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Post 5396
See the video and at https://rumble.com/v7ctgmq-the-great-jewel-theft.html at https://youtu.be/aRbQ2sJfGwA
This is a Fictionalized True Crime Story of Insurance Fraud explaining why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is one of a collection designed to help to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the ¬¬¬Perpetrators than any Other Crime.
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Post 5421
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Post 5418
Posted on August 5, 2026 by Barry Zalma
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In Union Mutual Fire Insurance Company v. 844 Knickerbocker, LLC, et al. No. 2024-10359, Index No. 602824/22, 2026 NY Slip Op 04789, Supreme Court of New York, Second Department (July 29, 2026) Union Mutual Fire Insurance Company issued commercial insurance policies to 844 Knickerbocker, LLC, and Sanjaya Mallick based on applications stating that the insured property contained two apartment units. After an underlying personal injury action was filed, Union Mutual determined that the property actually contained three apartment units and rescinded the policies on the ground that the defendants had made a material misrepresentation in the applications.
LAW:
A misrepresentation is material if the insurer would not have issued the same policy, or would have issued it only on different terms, had the true ...
Rescission for Material Misrepresentation
Post 5418
Posted on August 5, 2026 by Barry Zalma
An Insurer May Rescind An Insurance Policy Where The Applicant Made A Material Misrepresentation In The Application.
In Union Mutual Fire Insurance Company v. 844 Knickerbocker, LLC, et al. No. 2024-10359, Index No. 602824/22, 2026 NY Slip Op 04789, Supreme Court of New York, Second Department (July 29, 2026) Union Mutual Fire Insurance Company issued commercial insurance policies to 844 Knickerbocker, LLC, and Sanjaya Mallick based on applications stating that the insured property contained two apartment units.
LAW:
A misrepresentation is material if the insurer would not have issued the same policy, or would have issued it only on different terms, had the true facts been disclosed. To establish materiality as a matter of law, the insurer must submit documentation of its underwriting practices, such as manuals, guidelines, bulletins, or rules addressing similar risks.
DISCUSSION/ANALYSIS:
As a result, the...
