Insurer outlines duty‑to‑defend timeline; commission agrees to formalize claim‑reporting process

Representatives of the village’s property‑liability trust described the insurer’s process for handling claims, including ethics complaints, and urged the village to report allegations to the carrier promptly so coverage review and counsel assignment can proceed quickly.

Jen Martin, executive vice president of the insurer’s administrator, said claims should be reported to the carrier as soon as the village receives them. "These claims can move very quickly, particularly on the ethics side," she said, and recommended that the village identify a staff point person (risk manager, HR, or manager) responsible for reporting.

Monica Coleman, a claims supervisor for the claims administrator, said the carrier typically performs a coverage review and is often able to assign defense counsel within days and generally within a week when claims are reported promptly. The insurer emphasized that its model provides direct assignment of counsel (not later reimbursement), and that coverage often includes the duty to defend even when fines or penalties would not be covered.

Commissioners described a prior instance where private counsel had been retained before the carrier was engaged and asked the insurer to review that case to determine whether the carrier should have provided counsel or reimbursed the expense. The insurer asked the manager to submit claim details so staff could audit the handling and identify any breakdowns.

Next steps: The insurer offered free loss‑control and policy‑development resources and proposed that its loss‑control representative, Chris Kettleson, meet with the manager to develop written claim‑reporting procedures and a point‑of‑contact list. Commissioners agreed to have the manager coordinate with the insurer to draft a recommended process for the commission to consider.