Free Response to Motion - District Court of Arizona - Arizona

UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA

AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Plaintiff/Counterclaim Defendant, vs . ROBERT D. DUNN and JOY LYNN DUNN,

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No. CV 2003-1277 1 PHX SRB
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1 Defendants/Counterclaim Plaintiffs.)

TTON OF JANET J i L N Z B Y

Phoenix, Arizona September 21, 2004 10:08 a.m.

REPORTED BY:
Cyndi Morris-Crowe, RPR Certified Court Reporter No. 50102 Certified Court Reporters 2702 North 3* Street, Suite 3050 Phoenix, Arizona 85004 (602) 230-1030 Fax (602) 230-1080

PREPARED FOR:

Stephen E. Silverman, Esq (Condensed Copy/Index)

Case 2:03-cv-01277-SRB

Document 203-2

Filed 09/21/2005

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SHEET 6

Deposition of Janet E. N e w - 09/21/04

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1 A. Could be possible, sure. 2 Q. And do you have any kind of a procedure in 3 place where you could suggest to someone any changes 4 to your claims bulletins? 5 A. I'm sure we're free at any time to let our 6 claims staff know that perhaps there might be 7 somethingwe would like to see in a bulletin, but I 8 have never done it. 9 Q. Are you familiar with a statute called the 10 Arizona Unfair Claims Practices Act? 1 1 A. Yes. 12 Q. What is the Arizona Unfair Claims Practices 13 Act, to the best of your knowledge? 14 MS. ALLEN: Form, foundation. 15 THE WITNESS: It's a guideline by the 16 State to act fairly with customers. 17 Q. BY MR. SILVERMAN: What is American Family's 18 philosophy or position with respect to the Unfair 19 Claims Practices Act? 20 A. To follow the Unfair Claims Practices Act. 2 1 Q. Does American Family incorporate the Unfair 22 Claims Practices Act as part of its internal standards 23 for adjusting claims? 24 MS. ALLEN: Object to form, foundation. 25 THE WITNESS: We do refer to the Unfair
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1 Claims Practices Act and when we're training our own 2 people, we will use it as a training guide, yes. 3 Q. BY MR. SILVERMAN: Do you provide a copy of 4 the Unfair Claims Practices Act to claims adjusters? 5 A. Yes,wedo. 6 Q. Do you provide them a copy of the regulations 7 issued by the Department of Insurance? 8 MS. ALLEN: Form, foundation. 9 THE WITNESS: I'm sure that we have at 10 times given them copies of the regulations. But 1 1 it's -- the Unfair Claims Practices Act itself we give 12 out to the employees. 13 Q. BY MR. SILVERMAN: Are employees expected to 14 follow the Unfair Claims Practices Act as part of 15 claims handling? 16 A. It's 17 MS. ALLEN: Form. 18 THE WITNESS: -- part of the guidelines 19 that we ask them to follow, yes. 20 Q. BY MR. SILVERMAN: What are employees told 21 about the Unfair Claims Practices Act? 22 MS. ALLEN: Form, foundation. 23 THE WITNESS: They are told that these 24 are the guidelines we need to follow. They are set 25 forth by Arizona in dealing fairly with our customers.
MORRIS-CROWE

1 Q. BY MR. SILVERMAN: One of the provisions of 2 the Unfair Claims Practices Act that's 20-46 1(N)(3) 3 states that it's -- that a person shall not -4 basically it's a requirement that the insurance 5 company adopt and implement reasonable standards for 6 the prompt investigation of claims arising under an 7 insurance policy. 8 My question is, do you have any 9 familiarity with that particular provision of the 10 Unfair Claims Practices Act? 1 1 A. If you mean do I read it often, no. But to 12 me, prompt contact is what we train our employees in, 13 whether it's - because of the Unfair Claims Practices 14 or our own way of training our employees, is to get in 15 touch with our insureds as soon as possible. 16 Q. Do you agree that American Family is required 17 to adopt and implement reasonable standards for the 18 prompt investigation of claims arising under an 19 insurance policy? 20 MS. ALLEN: Form, foundation. THE WITNESS: I would think that since 21 22 the Arizona Unfair Claims Practices Act tells us we 23 need to do a thorough investigation and be prompt, 24 that we do that anyway in the line of work that we're 25 in.
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1 Q. BY MR.SILVERMAN: My question is, do you 2 believe that American Family is required to adopt and 3 implement reasonable standards? 4 MS. ALLEN: Form, foundation. 5 THE WITNESS: I can't speak for the 6 company itself, but we are here to adhere to the 7 Unfair Claims Practices Act. 8 Q. BY MR. SILVERMAN: And does American Family 9 have standards that pertain to ensuring prompt 10 investigation of claims? 1 1 A. Yes. 12 Q. And what are those standards? 13 A. The standards are that we get in touch with 14 our customers, anyone who is involved in a loss as 15 soon as possible. 16 Q. Are the claims bulletins part of the 17 standards that American Family has adopted and 18 implemented that pertain to claims investigation? 19 MS. ALLEN: Form, foundation. 20 THE WITNESS: I'm sure that some of 21 them adhere to the Unfair Claims Practices Act. 22 Q. BY MR. SILVERMAN: What are the elements of a 23 prompt investigation of a claim? 24 MS. ALLEN: Form. 25 THE WITNESS: A prompt investigation,
COURT REPORTING, L. L. C.

Case 2:03-cv-01277-SRB

Document 602-230-1030 09/21/2005 203-2 Filed

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