Claims and Risk Management Panel Empire Ballroom A , 8:30am

2. Claims and Risk Management Panel Empire Ballroom A, 8:30am

3. JOHN BURROWS Chair, International Association of Movers Claims Committee Dewitt Companies Ltd., LLC.

4. KEVIN SPEALMAN National Claims Services, Inc.

5. Claims & Risk Management Panel Inconvenience Claims PPF Presentation by Ms. Beth Holloway • Her presentation provided guidance on TSP’s responsibility and liability. • It included details on the PPSO and SDDC roles as far as authority and the appellate process. • Presented an SDDC Brochure on Inconvenience claims and where to find it on www.move.mil. • See PPF Slides 31-37 for details of her presentation

6. Claims & Risk Management Panel Inconvenience Claims Link to Brochure on www.move.mil

7. Claims & Risk Management Panel Brochure can be downloaded as a .pdf file

8. Claims & Risk Management Panel Inconvenience Claims What’s in the brochure? • Lists items that are non-reimbursable, including groceries, personal clothing, amusement parks and alcoholic beverages. • Explains that the “per diem” is not an automatic entitlement. • Gives time deadlines, exceptions to eligibility, and instructions on how to compute delay claims.

9. Claims & Risk Management Panel Inconvenience Claims PPSO and SDDC Roles in the Process • PPSO’s Role: to provide guidance, deny when appropriate and mediate inconvenience claims disputes between TSPs and members/employees. • If unable to settle disputes, PPSO should forward a COMPLETE appeal package to HQ SDDC PP QA army.sddc.safb.ppperf@mail.mil. • Package must include initial claim letter, list of items claimed, dates and times, receipts of all items claimed, TSPs reply to member on settlement, PPSOs appeal to TSP and the TSPs reply to the PPSO. • I am aware of at least one instance where the PPSO directed the TSP to pay an inconvenience claim, and were overruled by SDDC as the PPSO’s position was not in line with current guidance.

10. Claims and Risk Management Panel Conversion of SIT to owner expense History of the Conversion Issue • Old DOHA decisions were based on misinformation - ie. that an inspection at the time of occurrence was “required”, or the original TSP was responsible. • Industry pointed out in joint forums that DOHA rulings were in conflict with the established rule of law known as the “Last Handler Rule, as well as language that TSP liability terminated at midnight of the 180th day of SIT. • Industry worked with Alan Wohlstetter, who after consulting with Army JAG successfully appealed to DOHA to “overrule” all past decisions. • Now there is a more logical and clear cut date where liability shifts as Government Bill of Lading terminates.

11. Claims and Risk Management Panel Conversion of SIT to owner expense GBL Termination / Notification to Member • The Government is responsible for notifying the member about the upcoming conversion, and for advising him to obtain either insurance or adequate coverage/valuation from the agent. • Current regulation indicates that this is now being accomplished through DPS – and there is an email that goes out, that “highly encourages” the member to contact the storage warehouseman since liability is affected. • It should be stressed more in the notification that in most states, the default liability is only 60 cents per pound per article, so this has a major effect on coverage.

12. Claims and Risk Management Panel Conversion of SIT to owner expense GBL Termination / Notification to Member • The notice of termination cannot be retroactive. • The notice of termination can be rescinded not later than one business day prior to the effective date of the DPS termination. • TSP responsibility and liability ends at midnight of the day specified in the notice which the TSP receives through DPS advising of the termination. • We continue to see PPSO’s rescind terminations far after the original date of terminations, justifying it with a DD Form 1857 dated prior to conversion and advising the TSP that it was just user error about DPS. Rules clearly state that DPS date controls, not a paper form. • TSP’s are not notified when a shipment is “un-converted” in DPS. • Question: Does the DD Form 1857 have a purpose in light of this being a DPS function? • See 400NG Tariff, Item 17-2 for detailed regulations.

13. Claims and Risk Management Panel Conversion of SIT to owner expense Liability and claims process • Once converted, the claim would be processed as a commercial claim, and would be between the local agency and the member. • If no additional coverage is procured, the default liability in that state would prevail, as it’s a local commercial shipment. • If the loss or damage was noted on a rider/exception sheet that pre-dated conversion, the original TSP would be liable (assume that this would need to go through DPS?) Pack damage would be last handler (agent) liability if the items themselves were not included on the rider – the industry standard of holding packer responsible for pack damage does not apply here due to the last handler rule.

14. Claims and Risk Management Panel Conversion of SIT to owner expense Action Items? • It would be better for all parties if shipments did not convert at all, but if they do, the member needs to be located, and advised in advance of the ramifications of conversion, and of not procuring additional coverage. • PPO’s are still “un-converting” shipments long after they have converted, in violation of the rules. • TSPs and agents should also do what they can to make sure the member knows what is going on. • SDDC may want to reconsider the “joint inspection” verbiage, as some feel it is mandatory when its not, it rarely happens because of the cost of labor to break out the HHG, and the validity of the exceptions may be questionable due to the TSP not being present.

15. Claims & Risk Management Panel MCO Contact Information • Army – Ph: 301-677-9216, Steve Kelly, steven.r.kelly.civ@mail.mil • Air Force: Ph: 937-656-8044, AFCSC.JA@us.af.mil • Navy – Ph: toll free; 888-897-8217, commercial 757-440-6315 or NorfolkClaims@navy.mil • Marines – Ph: 703-784-9533, hqmc.claims@usmc.mil • Coast Guard – Ph: 757 366-6507, Melody.l.Taylor-Fain@uscg.mil , 757-366-6505, Bernadette.t.parker@uscg.mil , or 757 523-6947, andrea.f.davis@uscg.mil

16. STEVE KELLY Personnel Claims Branch Army Claims

17. OCIE • 1.0.2. The delivering TSP is liable to the customer, to the customer's agent, or to the military service that contracted for the shipment, for loss or damage that occurs to the customer's personal property while it is in the custody of the TSP. A customer's personal property includes Organizational Clothing and Individual Equipment (OCIE) issued by the Government to the customer. However, the TSP is not liable to the Government for loss or damage to OCIE if it can substantiate that it has previously compensated the customer for this. Liability on all shipments will be determined in accordance with the Carmack Amendment to the Interstate Commerce Act, (Title 49, United States Code, Section 14706) unless a specific provision herein establishes a different rule or procedure.

18. Essential Items Section 2.11.5 2.11.5.1 Refrigerators or other appliances necessary for the safe storage and preparation of food; 2.11.5.2 Necessary medical equipment; 2.11.5.3 Mattresses; 2.11.5.4 Washing machines and dryer

19. REAL PROPERTY CLAIMS ADDED TO DTR • - The customer and driver should take every opportunity, on pickup and delivery day, for the customer and the driver to walk around the premises and note any real property damage. This damage can be noted on the origin inventory (on pickup) or on the Notice of Loss or Damage At Delivery form (on delivery). The pickup TSP or delivering TSP must attest in writing that, just prior to departure from the residence, the TSP and the customer inspected the premises for any real property damage. • - If real property damage is not noted on either pickup or delivery day, the customer will notify the TSP within 10 calendar days of the pickup or delivery date of damage to real property, or within the time allowed in that state, whichever is greater. The TSP shall provide written notice on the date of delivery to the customer of the 10 day notice requirement. This notification can be made via email, phone, fax, or U.S. Postal Service.

20. REAL PROPERTY CLAIMS • - The TSP shall inspect within 2 business days of notification by the customer. • - The only acceptable form of settlement offer is an offer for the payment of money to cover the cost of repairing the damage to the real property. The TSP does not have the right to offer or make repairs in kind. The liability of the TSP to the customer for damage to real property in no way relieves the customer of any legal liability he may have to the owner or landlord of the property. • - The TSP will issue payment, deny, or make an offer within 30 days of receipt of a complete, substantiated claim.

21. REAL PROPERTY CLAIMS • - Real property claims are not filed in DPS. • - If there is a dispute the customer can contact the local Transportation Office for assistance. Failure of the TSP to provide the customer written notice of the 10-day notice requirement, to respond within 2 business days to notification by the customer or failure to settle the claim within 30 days may constitute reasons for punitive action by the Transportation Office.

22. Hurricane Matthew Hurricane Matthew was clearly an Act of God, and thus the warehouse is excluded from liability for claims for loss and damage to shipments caused by Matthew.   However, the warehouse remains responsible  for drying and remediation of the shipments.  Because the warehouse is not liable for the damage, it is entitled to be reimbursed by the Transportation Office for the costs of drying and remediation as an accessorial service charge.  See Section 1.4.2.5 of the DP3 Claims and Liability Rules.   The warehouse should coordinate with the TO before incurring such expenses.  The owner of the shipment must also be contacted and consulted regarding decisions as to whether remediation is the appropriate course of action or whether items should be disposed of without an attempt at remediation.  The owner may also wish to keep items which have sentimental value even if they cannot be remediated.  The MCO must also be contacted if there is disagreement among the TSP, the TO, and the owner.   For any items for which remediation is determined not to be appropriate, or for which remediation proves to be unsuccessful,  the member should file a claim with the MCO.  It is not necessary to file first with the TSP.  The MCO is authorized to pay Full Replacement Value under the GAP statute, 10 U.S. Code section 2740.

23. ROLAND AMOS DPS PMO

24. UNCLASSIFIED DefensePersonalProperty System(DPS) UpdateBriefing for InternationalAssociationof Movers on 23Oct2016 Mr.RolandAmos DPSFunctional Lead Together,wedeliver. Lt Col NadineLandrum/TCAQ PEO-T/618-220-4526/14Oct 16

25. UNCLASSIFIED Agenda • ClaimsRedesign Together,wedeliver. Lt Col NadineLandrum/TCAQ PEO-T/618-220-4526/14Oct 16

26. UNCLASSIFIED ClaimsRedesign • TentativeClaims ReleaseSchedule • Prototype testingwithTSPsNovembertimeframe • FQT13 Mar‐7Apr17 • • UAT12‐25 Apr17 • Releasedeployment plannedfor5May 17 Together,wedeliver. Lt Col NadineLandrum/TCAQ PEO-T/618-220-4526/14Oct 16

27. UNCLASSIFIED ClaimsRedesign • Claims Improvements • Addingitems toaclaimthat wasnotontheLoss/DamageReport (LDR) (within 75 days) • Automatingthe LDR/Claimprocesses • If anLDR orclaimhasbeeninitiated(butnoclaimsubmitted),systemwillautomaticallysendemailremainderto customer • 14calendardayspriorto the75daydeadlineandagainat7calendardayspriorto the75day deadline • MCOabilityto “revert” aclaim Together,wedeliver. Lt Col NadineLandrum/TCAQ PEO-T/618-220-4526/14Oct 16

28. UNCLASSIFIED ClaimsRedesign • Claims Improvements • Member can transferaclaimtothe MCObefore30 days IF... • ThecustomerreceivesofficialnoticefromSDDC ortheMCOthat theTSPisinbankruptcy • TheTSPfailstocomplywiththecatastrophiclossprovisions • ThecustomerreceivesofficialnoticefromSDDC, theMCO,ora PPSOthattheTSPhasbeenplacedinpermanent,world‐wideNon‐Usestatus,theTSP'sapprovalhasbeenrevoked,orTSPcontractterminatedby SDDC Together,wedeliver. Lt Col NadineLandrum/TCAQ PEO-T/618-220-4526/14Oct 16 10

29. UNCLASSIFIED Questions/Comments Together,wedeliver. Lt Col NadineLandrum/TCAQ PEO-T/618-220-4526/14Oct 16 11

30. Alan R. Jobe Executive Director CPPC – Claims Prevention & Procedure Council, Inc.

31. The Mission of the CPPC: • We are a growing, active, non-profit organization of claims • professionals in the moving and storage industry, and professional service • providers such as furniture repair professionals, appraisers, adjusters, • attorneys, etc. • Our twin goals are: (1) to prevent claims (such as damaged and/or missing items) in the moving and storage • industry, and (2) to handle claims professionally once they do indeed occur. • If it has to do with claims in the moving and storage industry, our 900 plus members are • involved!

32. Connects you to Qualified Individuals to be your front-line customer service. • Can handle Emergencies. • Can handle normal transit claims. • Can save you from paying non-transit related claims or simply cashing out a customer because you do not know what other options you may have.

33. Cashing out a claim to a customer is not always the right answer! • Repairing an item will make a customer whole again and will remove the damage from the customer’s vision. • Removing damage items that are not repaired from a customer’s home, will get them out of sight and prevent them from being transported again. • Cash outs are necessary, but simply paying a customer to mark the claim closed can cost you far more in the long run.

34. Emergency Claims take immediate action! • Water • Fire • Accident • Infestation

35. Let the CPPC Members help you fight the rising costs of claims through our network of qualified craftsmen, that understand transit related damage and the industry standards. • We are 50 years strong • We are your front line Customer Service

36. CPPC Website: www.claimsnet.org

38. The CPPC is here to link you to who you need to extend your service to your customer. Join us today and know you have representation at the end of the move, when and where you need it. A guest sign-on has been set up for your access to the CPPC web site for • 30 days. ID - “Guest” Password - “iam2016” • Alan R. Jobe, • Your CPPC Ambassador

39. MALCOLM PEARSON DANIEL REYNOLDS Reason Global

40. Cyber Risks Reason Global Insurance

41. Cyber Risks – A Global Threat So who are Reason Global Insurance • Lloyd’s of London broker based in U.K • Specialist broker working only in international moving and storage • Combined industry experience of over 100 years • Work only with A+ rated Lloyd’s insurers • IAM Attendees since 2008 • Arrange cover in over 35 countries across the globe • Work with insurers who are leading the way on cyber protection for business • Today is about providing some insight for IAM members

42. Cyber Risks – A Global Threat The Threats to Your Business What is ‘Cyber’?

43. Cyber Risks – A Global Threat How much of a threat is it today? “Cyber Crime has overtaken the drug trade as the most profitable form of crime in the world” Digital technology continues to transform and disrupt the world of business, exposing organisations to both opportunities and threats. So it’s hardly surprising that cybercrime continues to escalate – ranking as this year's second most reported economic crime. Statement from PwC Global in 2016 Australian Attorney General, Robert McLelland

44. Cyber Risks Contracting & spreading a computer virus Denial of Service (DoS) Attacks Cyber Crime Hacking Data theft Media Perils Public Relation costs Defamation The EXPOSURE Data Breach Failure to protectPersonally identifiable Information Notification costs Risk of the digital world Operating online Storing electronic data

45. Cyber Risks – A Global Threat The Threats to Your Business What can really be affected though? • Main operating software • Company website • Social Media profiles • Ransom payments demanded • Theft of client data (passports, payment details etc…) • Contract loss as a direct result • Reputational damage

46. Cyber Risks – A Global Threat The Threats to Your Business Consequences of a Cyber Incident • Loss of brand and customer trust • Inability to trade and costs of downtime • Costs to repair or reinstate systems • Ransom payments to hackers • Regulatory fines • Legal costs • Compensating victims of data breach for theft of data

47. Cyber Risks – A Global Threat The Threats to Your Business Does it really affect the moving industry? • ‘My issues are around physical movement, not cybercrime’ • ‘I’m too small to be of consequence to these guys’ • ‘My computers going down is the last of my worries’ • ‘The real targets of these attacks are PLC’s and financial institutions’ • ‘Everything is backed up and secure so I’m not worried’

48. Cyber Risks – A Global Threat The Threats to Your Business Cyber Exposure can manifest itself in two ways 1) Cyber Attack: 2) Non-Malicious Events:

49. Cyber Risks – A Global Threat