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Claims Panel: FRV GAP Legislation Updates

Discussion points include the recent updates to the FRV GAP legislation, allowing MCOs to directly pay claimants in certain limited circumstances. Other topics encompass managing customer expectations, DPS issues, and providing claims information to MCOs on transfers.

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Claims Panel: FRV GAP Legislation Updates

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  1. Claims Panel Wednesday, September 14, 2011 8:30 am – 10:30 am

  2. PEG WILKEN Chair, Claims Committee, IAM Stevens Forwarders, Inc.

  3. BRETT COAKLEY Air Force Claims Service Center

  4. STEVEN KELLY U.S. Army Claims Service Center

  5. Claims Panel Air Force Claims Service Center 1050 Forrer Blvd Kettering, OH 45420 (937)656-8044 Brett L. Coakley Attorney-Advisor (937) 656-8042 JD Reese Center Chief (937) 656-8351

  6. Claims Panel US Army Claims Service Personnel Claims & Recovery Division Ft. Meade, MD (301)677-7009 Steve Kelly Chief, Personnel Claims Branch Extension 304 Henry Nolan Division Chief Extension 301

  7. Claims Panel MCO Discussion Points GAP legislation USAF Transferred Claims Managing Customer Expectations DPS Issues Timely Updating (e.g. Delivery Dates, offers) Notice Claims in DPS first Providing Claims Information to MCO’s on transfers Appearance Allowance Repair Firms Process Real Property/Fixture Damage

  8. Claims Panel FRV GAP Legislation • “Gap” legislation signed into law as part of FY 2011 NDAA. 10 U.S. Code Section 2740 • Authorizes MCO to pay FRV directly to claimant in certain limited circumstances IF shipped or stored under FRV contract

  9. Claims Panel FRV GAP Legislation Section (1) The Secretary of Defense and the Secretaries of the military departments, in paying a claim under Section 3721 of Title 31 arising from loss or damage to household goods stored or transported at the expense of the Department of Defense, may pay the claim on the basis of full replacement value in any of the following cases in which reimbursement for the full replacement value for the loss or damage is not available directly from a carrier under Section 2636a of this title:  (1) A case in which--  (A) the lost or damaged goods were stored or transported under a contract, tender, or solicitation in accordance with Section 2636a of this title that requires the transportation service provider to settle claims on the basis of full replacement value; and  (B) the loss or damage occurred under circumstances that exclude the transportation service provider from liability. 

  10. Claims Panel FRV GAP Legislation Section (1): • TSP is excluded from liability • Not limited to exclusions in Section 1.3 of Claims and Liability Rules • No requirement to file with TSP first • Rationale: If TSP not liable, no way for claimant to ever receive FRV thru Recovery

  11. Claims Panel FRV GAP Legislation Section (2) (2) A case in which--  (A) the loss or damage occurred while the lost or damaged goods were in the possession of an ocean carrier that was transporting, loading, or unloading the goods under a Department of Defense contract for ocean carriage; and (B) the land-based portions of the transportation were under contracts, in accordance with Section 2636a of this title, that require the land carriers to settle claims on the basis of full replacement value. 

  12. Claims Panel FRV GAP Legislation Section (2) • Shipment damaged by Ocean Carrier • Rationale: OC not part of FRV or DP3 programs, no way for claimant to receive FRV thru Recovery

  13. Claims Panel FRV GAP Legislation Section (3) (3) A case in which--  (A) the lost or damaged goods were transported or stored under a contract or solicitation that requires at least one of the transportation service providers or carriers that handled the shipment to settle claims on the basis of full replacement value pursuant to Section 2636a of this title;  (B) the lost or damaged goods have been in the custody of more than one independent contractor or transportation service provider; and  (C) a claim submitted to the delivering transportation service provider or carrier is denied in whole or in part because the loss or damage occurred while the lost or damaged goods were in the custody of a prior transportation service provider or carrier or government entity.  (10 USC 2740. Added Public Law 111-383, Div. A, Title III, § 354(a)(1), Jan. 7, 2011, 124 Stat. 4194.)

  14. Claims Panel FRV GAP Legislation Section (3) • Shipment handled by more than one independent contractor (such as DPM) • Claimant must file first with delivery TSP • Claimant can receive FRV from MCO only if TSP blames prior handler

  15. KEVIN SPEALMAN National Claims Service

  16. NORD YAMAUCHI The Pasha Group

  17. Claims Panel Wednesday, September 14, 2011 8:30 am – 10:30 am

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