-5-
companies' in-house claims adjusters performed about 70 percent
of all claims adjusting in 1993 and more than half in 1994.
Petitioner contracted with independent claims adjusters to
work as needed from time to time. Petitioner contracted with 192
claims adjusters in calendar year 1992, 170 in 1993, and 199 in
1994. Catastrophic claims adjusters travel extensively and are
frequently away from home for long periods of time. Adjusters
could decline calls to work for petitioner if they so chose.
Petitioner contracted with individuals and insurance
companies which were located throughout the United States. Once
petitioner was hired, it was required to have claims adjusters at
the site of the catastrophe immediately after it occurred.
Independent claims adjusting companies typically paid their
claims adjusters 60-65 percent of the fee they received from the
insurance company for each claim adjusted. In contrast,
petitioner paid its claims adjusters 70 percent of the fee it
received for each claim adjusted. This helped petitioner obtain
and keep the services of high-quality claims adjusters.
Petitioner issued to its independent claims adjusters Forms
1099 totaling $15,589,041 for fiscal year 1992 and $6,510,745 for
fiscal year 1993. Petitioner paid 76.2 percent of its gross
receipts to claims adjusters in fiscal year 1992 and 71 percent
in fiscal year 1993.
Petitioner's supervisors coordinated the adjusting
activities at each work site and were liaisons between petitioner
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011