The approval sequence
Step 1: Adjuster recommendation
- Xactimate estimate finalized
- Reserve updated
- Recommendation to pay/deny/partial
- Coverage determination
Step 2: Desk supervisor review
- Scope reasonableness
- Policy compliance
- Reserve adequacy
- Pricing integrity
Step 3: Authority approval
- Adjuster has authority → direct approval
- Exceeds authority → supervisor or manager signature
- Over supervisor authority → manager
- Over manager authority → director or VP
Step 4: Payment processing
- Check cut by accounting
- Electronic transfer increasingly common
- Payee verification (mortgage holder, contractor, policyholder)
- Delivery timing (often 7-14 days from approval)
Step 5: Post-payment documentation
- Claim file updated with payment details
- Reserve adjusted to reflect payment
- Reopening flag set for closed claims
Approval drivers by stage
At adjuster level
- Scope documentation
- Policy language compliance
- Reserve support
At supervisor level
- Pattern consistency with similar claims
- Reserve adequacy post-payment
- Customer/complaint history
At manager level
- Financial impact
- Regulatory risk
- Reputational considerations
- Prior bad-faith exposure
At director/VP level
- Commercial / legal exposure
- Multi-policy customer relationships
- Public-relations considerations
Timing implications
Each stage adds time. Typical:
- Under $25K: 3-7 business days
- $25K-$100K: 7-14 business days
- $100K-$500K: 14-30 business days
- Over $500K: 30+ business days
What accelerates approval
- Clean documentation
- Non-controversial coverage
- No bad-faith indicators
- Standard pricing
- No reinsurance notification
What delays approval
- Incomplete documentation
- Coverage disputes
- Non-standard scope
- Large reserve increases mid-approval
- Legal review flags