RE: Xactamate buy out
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RE: Xactamate buy out - 8/16/2006 9:42:42 PM
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aporco
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Insurance is not regulated by the Federal government. This is still the purview of the individual states. There is nothing to prevent my scenario from occurring. Even if all 50 individual state commissioners pasted a resolution that the estimating software of choice is Xactimate, probably not all 50 States would adopt it. BTW, there is no interstate trade in insurance. Every insurance company has separate entities in every state where they are licensed and do business. The names may be the same (they can do that they own the name), but they set up as a separate corporation in that resident state. Allstate in CA is not the same company as Allstate in any other state, they do all have the same parent holding company though. And as katadj has pointed out, the Federal government is not who we really want to see trying to regulate insurance, the insurance industry has problems enough without that.
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RE: Xactamate buy out - 8/16/2006 11:18:46 PM
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rhking
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quote:
ORIGINAL: aporco
BTW, there is no interstate trade in insurance.
Might want to rethink that one. Check the US Code sec. 1033 (f)(3) - interstate commerce (or trade) is defined very broadly.
http://72.14.203.104/search?q=cache:qVxt1iMC3WsJ:www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001033----000-.html+interstate+commerce+and+insurance&hl=en&gl=us&ct=clnk&cd=1
http://www.lectlaw.com/def/i060.htm
I said that the Feds regulate interstate commerce, not the insurance business directly. But, if the business practices of the insurance industry (or any industry for that matter) negatively affect interstate commerce, then the Feds have the power the step in and regulate it. If you have a parent company with subsidiaries in each of the 50 states organized under the laws of each respective state, then by definition you have interstate commerce because the seller (parent company) "sold" services vicariously through the sub across state lines.
Katadj:
I hear what you're saying and agree about trusting the Feds. But, I still say that if the ISO/Xactimate deal violated Federal antitrust laws, we would have heard about it already. Under the Clayton Act (Hart Scott Rodino), if the proposed transaction/merger meets certain criteria, then a pre-merger notification to the DOJ is required and a waiting period follows while the Feds examine it. Since both companies aren't public, there's not a lot of transparency re: the size of the transaction. But, if ISO's purchase was as anti-competitive and monopolistic as is proposed, chances are good that the DOJ would have nixed the deal.
http://www.ftc.gov/opa/2001/01/hsrreform.htm
Later. 
< Message edited by rhking -- 8/16/2006 11:20:59 PM >
_____________________________
Money can't buy you happiness, but it can buy you a yacht big enough to pull up right alongside it.
- DLR
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RE: Xactamate buy out - 8/17/2006 8:33:03 AM
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aporco
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Using Allstate as an example: Allstate corporate headquarters is in IL. Allstate goes to UT (or any state) where they establish a UT insurance company. The UT sub is a separate corporation probably formed in Delaware or Nevada. The UT sub does business only in UT under the regulatory authority of the State of Utah. The UT sub is subject only to UT laws and regulations because it does business intrastate only. The fact that they report results to the IL parent company does not constitute interstate commerce.
Back to my scenario: If the National Association of Insurance Commissioners decides as a body that the preferred estimating program is Xactimate (again because of ISO's lobbying pressure), their recommendation does not violate any law. The adoption of this policy would be done a state by state basis. Possibly not every state would adopt it. TX might choose Integra because Integra is located in Tyler, TX. None of this constitutes interstate trade.
About every 8-10 years, the Congress will attempt to pass some act that creates Federal oversight of the insurance industry. The insurance companies all send more money to their lobbyists and the bill dies in committee.
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RE: Xactamate buy out - 8/17/2006 11:24:41 AM
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rhking
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Well, looks like aporce is right. According to the McCarran-Ferguson Act insurance is subject to state regulation solely and only falls under federal jurisdiction if the law in question is not addressed by the state (i.e. if TX has an antitrust provision then the Feds are out of luck). This is where it gets really good though...the real question for the ISO/Xactimate deal is whether they are engaged in the "business of insurance", which is required to trigger the general exemption from federal regulation. The link below is to an article that pretty thoroughly discusses the issue:
http://72.14.203.104/search?q=cache:UVBcdhlUTRoJ:www.wrf.com/publication.cfm%3Fpublication_id%3D11997+%22McCarran-Ferguson+Act%22+antitrust+and+interstate+commerce&hl=en&gl=us&ct=clnk&cd=8
So, are ISO or Xactimate engaged in the "business of insurance" according to the tests set forth by the Supremes? Any thoughts?
Later
_____________________________
Money can't buy you happiness, but it can buy you a yacht big enough to pull up right alongside it.
- DLR
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RE: Xactamate buy out - 8/17/2006 11:31:11 AM
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aporco
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Not all, they do not underwrite risk.
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RE: Xactamate buy out - 8/17/2006 11:35:59 AM
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ranger
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Do you really believe that ISO and Xactimate did not know what they were doing?
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RE: Xactamate buy out - 8/17/2006 11:41:26 AM
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rhking
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quote:
ORIGINAL: ranger
Do you really believe that ISO and Xactimate did not know what they were doing?
Agreed - deals like this don't happen w/o much pre-trans. due diligence.
_____________________________
Money can't buy you happiness, but it can buy you a yacht big enough to pull up right alongside it.
- DLR
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RE: Xactamate buy out - 8/17/2006 11:43:04 AM
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aporco
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ranger, I'd bet that ISO did. Xactimate was available and the means to an end.
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RE: Xactamate buy out - 8/17/2006 11:53:36 AM
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Gale
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I agree with Alan, both companies support insurance carriers, not write it. The key I expect will be if ISO moves their main focus over to estimating software or making money. If they decide to milk the success the founder had created it will be known in time. The most important thing will be the selling price and conditions perhaps. ISO is expecting some amount of ROI and that may drive the management approach that ISO takes toward Xactimate. How will the current big fish in a small pond mind set change to a small fish in a big pond? Since the entrepreneur founder of Xactimate is deceased Xactimate management may welcome directions from ISO which would be key to their future success and could be the first estimating software vendor sale to work out long term in our industry.
< Message edited by Gale -- 8/17/2006 11:54:13 AM >
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RE: Xactamate buy out - 8/17/2006 12:36:46 PM
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rhking
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Gale/Anyone:
What is the market share breakdown for Xact vs. other players? Just curious - thanks.
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RE: Xactamate buy out - 8/17/2006 12:44:34 PM
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Gale
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Xactimate talks about 100,000 users - contracting, adjusting and remodeling. Last year Simsol stated in a thread they had 4000 users. That are all of the numbers that have been released that we know about.
< Message edited by Gale -- 8/17/2006 12:45:11 PM >
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RE: Xactamate buy out - 8/17/2006 12:47:54 PM
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Gale
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The prelease last week stated they had 231 employees.
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RE: Xactamate buy out - 8/19/2006 6:47:57 PM
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Gale
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http://www.exactinfo.com/sadmin/LicensePopup.htm
One paragraph from the above link states:
“XactSites will never re-sell your "Personal Identifying Information" such as your? name, property address, phone numbers, or e-mail address to any third-party entity.? You expressly acknowledge that, so long as it does not include your Personal Identifying Information as the source or subject of the data, XactSites shall have a perpetual right to use XactInfo data in its aggregated reports.? For example, XactSites may produce a report that provides the total number of XactInfos registered within your ZIP/postal code area.? While your XactInfo Member Profile and Registration Information would be counted as part of that total, that report would not reveal your Personal Identifying Information.? “
Question? Do you think Xactware stripped out the name, property address, phone numbers, or e-mail address of every claim ever to hit one of their websites that have been uploaded by adjusters over the years before they sold the data to ISO or do you now think ISO has access to every name, property address, phone numbers, or e-mail address that Xactware controlled the day before the sell?
If the name, property address, phone numbers, or e-mail address of insures were sold then would the carriers, homeowners or business owners could have a breach of contract case?
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RE: Xactamate buy out - 9/16/2006 5:04:19 PM
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TourneyKit
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As I am new to this forum, I will post IMHO. Any software package is only as useful as the person plugging in the numbers. To take a ninty day wonder adjuster and give him Xacto or Simsol and turn him loose on the public to write estimates is a sin. It takes construction knowledge to write comprehensive estimates. That comes in but two ways, experience and time. No degrees, no seminars, no software programs can give that to you. In short, you have to earn it, the old fashion way.
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RE: Xactamate buy out - 9/16/2006 5:26:17 PM
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aporco
Posts: 124
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TourneyKit,
If some of the newbees had received 90 days of training, they would have been light years ahead of those cranked out in 3 - 7 day courses. In 90 days a reasonably intelligent individual could actually learn something -- not everything, but they could get some solid fundamentals. Heck, with 90 days of concentrated effort, you'd probably figure out how to use Xactimate. I switched from Xactimate to Integri during Katrina because Xactimate wouldn't produce the reports that my carrier required. It took me two weeks to finally get as proficient on Integri as I was on Xactimate and I'm a fast study. Not that this has anything to do with the thread ...............wandering........
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RE: Xactamate buy out - 9/16/2006 5:38:03 PM
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Tom_Toll
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I don't know that much about Xactware, but it seems they have no report macros for adjuster's to use. I would think that if they are selling their wares to the adjusting community, that they would have report macros for the adjuster to use. Am I incorrect. I do not know if PoweClaim or Simsol has them. Can someone put a comment about that?
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Success is not final, failure is not fatal: it is the courage to continue that counts.
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RE: Xactamate buy out - 9/16/2006 6:23:33 PM
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aporco
Posts: 124
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Tom,
There's the rub. Xactware isn't selling to the adjusting community. They are selling to the insurance and insurance/restoration contractors* industries. Xactimate provides the industry with an apples to apples comparison. It is an attempt to determine what is fair and reasonable. Adjusters are forced to lease it in order to work for certain carriers.
*In order to have a ServPro or ServiceMaster franchise, you must have Xactimate. That's a lot users right there.
< Message edited by aporco -- 9/16/2006 6:54:33 PM >
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RE: Xactamate buy out - 9/16/2006 6:43:18 PM
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newtonclaimstim
Posts: 155
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I feel that they do not care about the single use person, they want the carriers and vendors who can supply them the multi-use outlet. That is why the packages supplied to the vendors have report packages tailored to them. I can speak only to the software that was supplied to myself from Crawford & Co. it had all of the canned useage letters and reports included. This was different software than I used doing Insurance Restoration work as that contained no insurance reporting section's.
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RE: Xactamate buy out - 9/16/2006 6:46:47 PM
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trader
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Tom both PowerClaim and Simsol have a good Short Report, SOL etc that will fit your needs as well or better than I/C The etransfer on both are very simple to insureds/carriers other adjusters.
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