The Stakes: A trucking and excavating company with 50 trucks was suffering from a high Mod. The culprit was a massive $304,138 reserve left over from a prior insurance carrier. The current agent ignored it, assuming nothing could be done about an old claim .
The Investigation: The Advisor reviewed the medical notes and found a critical detail. The treating doctor had concluded that an expensive two-level fusion surgery—which the reserve was set aside to pay for—was actually not suitable for the patient.
The Breakthrough: The carrier’s system hadn’t been updated with this medical opinion. The money was sitting there for a surgery that was never going to happen. The Advisor contacted the adjuster and forced a reserve reduction based on the doctor’s own notes.
The Result: The reserve was slashed to $121,070, and the claim was eventually settled for even less. The client saved $183,068 in reserve impact, drastically lowering their future premiums.