Your Large Loss Claim Questions Answered
When your mutual has a Large Loss Claim, it’s important to understand how the claims process works and what to expect. Knowing what documentation to compile and how to submit it helps resolve the claim smoothly and in a timely fashion.
Some of the most frequently asked questions we receive about LLCs are:
What is a Large Loss Claim and why must I report it to WRC?
For WRC’s purposes, an LLC is any loss that is expected to exceed the lesser of your retention or $100,000. As soon as you are aware that the incurred loss may exceed these parameters, you should submit a Reinsurance Loss Report Notice and the related policy declaration page. WRC tracks these claims for industry trends and reserve purposes. Timely reporting also allows us to help with claims- handling procedures and strategies, including identifying opportunities for salvage or subrogation recovery, and determining the need for outside experts or legal counsel.
What happens after I submit a Reinsurance Loss Report Notice?
When WRC receives the Reinsurance Loss Report Notice, we review the information, assign a claim number and post the LLC Client Notification to ShareBase. The path to the folder is: Downloads from WRC from Reinsurance > Reinsurance Property Claims >
Large Loss Claim Client Notifications.
For a quick reference, the LLC Client Notification also is posted under Downloads from WRC from Reinsurance > All Recently Posted Docs. When the LLC Client Notification is posted to ShareBase, you will receive an email from contactWRC@thewrcgroup.com to confirm the receipt of your Reinsurance Loss Report Notice. The email will also provide a link to ShareBase to access the notification, which includes the assigned WRC claim number. If the declaration page was not submitted with the Reinsurance Loss Report Notice, the email notification will request you to upload the related declaration page(s) to ShareBase.
How do I receive reimbursement on a Large Loss Claim?
After you make a payment on a Large Loss Claim and are eligible for reimbursement, please submit a completed Excess of Loss Claim Form to WRC via ShareBase (Uploads to WRC > Upload Files Here) or via email at contactWRC@thewrcgroup.com. If the policy is ceded to the first surplus program, remember a First Surplus Paid Loss Bordereau also must be submitted with your Excess of Loss Claim Form for WRC to issue payment.
What should I do after closing a Large Loss Claim?
If a claim exceeds your per-risk retention, WRC will require documentation to close the claim for reinsurance purposes. When your mutual closes an LLC, notify WRC and provide this documentation:
- Check register detail (preferred) or copies of checks that match the total amount paid on the claim, including loss and loss adjustment expense.
- Adjusters Report or signed Proof of Loss that supports the total loss paid on the claim. We do not require invoices or backup beyond check detail for LAE paid, unless subrogation has been pursued on the claim.
This documentation can be included with each Excess of Loss reinsurance recovery request or submitted in full when the claim is closed by your mutual.
What support do you need if my company uses internal adjusters?
If your company uses internal adjusters and you do not have a signed Proof of Loss, the Adjusters Report can be as simple as a spreadsheet with the date of payment, payment amount and the coverage that the payment relates to. Some external adjusters provide a summary of claim payments, often referred to as a Statement of Loss, with their final report.
If your adjuster provides this documentation, you can send a copy of the final report. It is not necessary to provide WRC with photos, floor plans or detailed valuations included in an Adjusters Report, but if you would like to submit them for our Property Loss Consultants to review, you may do so.
Why does WRC require this documentation?
Closing documentation allows WRC to document that the claim is closed and that we have reimbursed your mutual for all recoveries due under your contract, avoiding unnecessary follow-ups during the completion of quarterly data reports. WRC’s reinsurers also require this supporting documentation for any loss exceeding WRC’s retention.