Claims Software Solutions
for the Insurance Industry

Complete Follow Through For Financial Administration Of Complex Litigation

Through many years of involvement with the insurance industry, most notably relationships with client/carriers who insure the construction industry, JDi was uniquely certified to develop Vendor Cost Control “VCC 2000” Software; Critical to administering funding agreements between developers/carriers and subcontractors/AI insurers.

Originally designed for immediate complex calculation of defense costs and matrix management, calculating shares as outlined in the Joint Defense Agreement, VCC 3.0 is now available for financial administration of any complex litigation, where shared costs are involved in a “moving tier” environment.

Highly Affordable And Cost Efficient

JDi account executive technical expertise allows for volumes of information to be produced with very little labor. Information sharing expenses are further reduced through web based reporting and e-mail communications.

Choosing JDi As Your Cost Administrator And Collaborator For Collection, Results In An Unbiased Overview Of All Financial Activities And Complete Reporting Accuracy.

How Does it Work?

Utilizing technically superior matrix abilities, we can compute date of tender through dismissal with a constantly accurate computation of carrier share amounts. Each funding request is based on dates work was performed. Please click hyperlink for detailed video. Information is stored in a central database. The system uses a uniform task code to categorize expert and defense costs while comparing them to budgets.

Cost administration service includes the following:

• Law firms may submit an electronic version of invoices for per diem allocation. or JDI will use task dates averaging if EDI not available
• Task codes identifying the job performed, allowed billing amounts, as well as other historical data that can be generated from this information. The system can import attorney and expert bills for 100%
• Reports for all payment activity, Indemnity, Defense or Trust, as well as an immediate reallocation of balances
• Complete audit trail of every entry made, by operator, changes, and dates - Including matrix changes
• Complete contact information for Insurance Carriers, Attorney Firms, Insured’s, Vendors
• All identifying claim information including Insurance Company claim number, Attorney file number, Case name and common JDi
• Data Master Number. You can search using your familiar claim number.
• Job descriptions for all vendor firms, making it easy to determine their function
• Password protected access rights restricting what users can see. Proprietary information is securely protected.
• Invoice and payment entry wizard prevents duplicate entries. Editing is done by invoice and check number.
• Complete due diligence of all activities performed during the life of the claim, using Times Manager.
• The vendor portal allows vendors to check accuracy and compare invoice and payment with VCC 3.
• You can split or exclude invoices. Each primary carrier can pay their own Attorney. VCC can do all the computations and accommodate every situation; SIR causes a late start; Exhaustion causes early termination etc.
• Complete and ongoing account reconciliation during the life of the case. Matrix requests ensure no double payments to experts/vendors. Any carrier who overpaid more than his share amount will be reimbursed. Password protection prevents any security problems. Full backup is provided daily with ongoing incremental backups as information is changed. User entries are documented and audit logs are available for tracking changes. Every precaution is taken to insure secure data. Document depositary holds data for the statute of limitations.
• Document Depository saves it all for the required time of repose. Most invoices are submitted to cost administrator account executives via e-mail, in electronic data format. While some still come the old-fashioned way, they are immediately scanned to the file and indexed. When there are several legal issues regarding additional insureds, primary carrier's and defense invoice client/privileges, the document depository has a permanent record of all these invoices, with file notes containing all correspondence and can optionally prepare a complete record of all financial activities at the end of the case. A Carrier receiving redacted invoices, as the case was progressing, can now order a CD ROM to permanently document the file for closing.

JDi Makes Each Function Easier To Perform With Complete Follow Through Efficiency

Defense Attorneys
Performing as the hub of the system, defense counsel is concerned with hiring the experts, authorizing payment, and generally managing the legal aspects. As invoices are received, they are approved and forwarded to JDi Data Corporation for payment. Invoices can be received in electronic data format, or scanned and entered into our document depository, ready for distribution when our summary reports are not enough. There is no further need for professional services.

Auditors
Should professional accounting firms be required for legal audits, all invoices and payments are maintained and provided in an orderly fashion, easily accessible using the VCC 3.0, avoiding the need to pay CPA rates for clerical work.

Vendors/Experts
Constantly complaining about the time it takes to receive payment, vendors now have access via the web to all their invoice information. JDi Data Corporation's timely funding requests reduce payment turnaround time. JDi requests carrier payment ledgers, vendor matrices and compares them to administered trust account payments. This triangulation overview eliminates errors. VCC identifies and corrects over/under payments that can be made by primary or AI carriers in the early stages of the claim.

Primary and Additional Insured Carriers
Responsible for their share of the expert cost expenses, carriers can easily identify how much is due, how much has been paid to date and if other carriers are paying in a timely manner. The system is designed for legal, vendor and carrier access, including all reports and backup documentation. Because of the complex "Moving Tier" nature of share amounts, VCC 3.0 stores the Claim Liability History in the matrix, which can be updated by counsel and maintained by JDi. VCC knows exactly what the carrier shares are for in any given invoice, on any given date, based on computation from the date of tender. The matrix computes share amounts based on the date work was performed, NEVER the invoice date. You pay only what is owed by your insured.

Document Depository saves it all for the required time of repose
Most invoices are submitted to cost administrator account executives via e-mail, in electronic data format. Some still come the old-fashioned way and are immediately scanned to the file. While there are several legal issues regarding additional insureds, primary carrier's and defense invoice client/privileges, the document depository has a permanent record of all these invoices, with file notes containing all correspondence and can optionally prepare a complete record of all financial activities at the end of the case. A Carrier receiving redacted invoices, as the case was progressing, can now order a CD ROM to permanently document the file for closing.

Q. Why is there a need for cost administrator?
A. Because the share amounts are constantly being reallocated/recomputed during the entire life of the claim, rendering impossible the ability to relate interim data to final data.

1. The average construction defect claim lasts 3 to 5 years at the cost administration level
2. JDi Data allocates the invoices on a per diem basis for tasks performed without regard to invoice date, unless otherwise instructed, using extremely sophisticated software calculations based on tender dates, cessation dates, and the number of participants at any given time. Unlike the spreadsheet method, the heart of the Vendor Cost Control  System is the matrix, which considers the dates  task was performed and allocates only that portion of the invoice to the carriers that were participating on that specific date.  SHO-ME
3. Since the shares are continually reallocated, the only constant is the payment made by the carrier. It is impossibly related to a specific invoice because of the continual reallocation of the cost sharing agreement.

Q. Why can’t payment application be handled by traditional accounting practices?
A. It can and is, but the shares must be represented/understood as a snapshot in time, subject to change by any variants affecting the matrix.

1. A standard accounting method is to apply a payment to an invoice, which is impossible in a construction defect litigated case because the matrix is changing the relationship of the share amount of the invoice. A payment can only be applied to the shares allocated to the paying carrier at the time of allocation.
2. JDi does not issue an invoice, but a summary report of all invoices received to date in the defense of the case. It then extracts the matrix participants share, applies the participant’s payments and comes up with a balance due, which is valid at the time of issuance.
3. A late received invoice will affect previously allocated shares. JDi records received date also.
4. A new participant to the matrix with an earlier tender triggers backward reallocation of the matrix. An acceptance date two years later, requires a complete reallocation and changes previously reflected  shares. All previous “payment to invoice” ratio is invalid.

Q. As an insurer, please explain how payment was applied to the individual vendor invoices. This is an important factor when determining how to expense payments.
A. For the same reasons JDi does not issue an invoice, but a summary report of existing vendor invoices as an interim benchmark for payment relationship, it is impossible to ascertain what portion of a carrier payment was applied to a specific invoice until the end of the matter. But the web portal provides a real-time exact dollar and percentage amount owed by the carrier at any given time. The following information is in our reports:

1. A summary total of Attorney fees and expenses, experts, vendors, mediators for all invoices to date.
2. The specific amount of an invoice, dollars, percent and blended percent allocated to insured/insurer. SHO-ME
3. Balance due in snapshot format at any given point in the life cycle calculated from available information in the system at the time of request. SHO-ME

Q. So how does JDi deal with these variants?
A. Simple, we create a pyramid and work from the top down, with the top of the pyramid being the total defense costs, the sides being the allocated shares to the left and payments to the right, with the bottom being the balance due from each carrier. Complete details are available by logging on to our website, the only interactive portal in the industry.

Q. How do I figure out how much of an invoice my carrier of owes, what is the share percent and amount?
A. This number is ascertained when the case is closed, all reallocations have been performed, everyone dismissed, and all defense costs terminated. This is the only time when we can determine final individual share amounts of an invoice. All other calculations and allocations are based on information available at the time the snapshot was taken.

Q. How do I contribute to the defense costs if I don’t actually know my share amount?
A. JDi produces an interim summary report, which relates your actual payments to your currently allocated share amount. Balance due is based on calculations of invoices received, matrix participants and payments received.

Q. I am an AI carrier and I accept my responsibility early and pay my share amount timely. Two years from now, another carrier accepts with the same tender date as mine and dilutes my share. Now what?
A. JDi is an information provider and offers the interactive web portal. Adjusters are constantly aware of everything that takes place during the Financial Life of the claim, 24/7. No secrets! Here are the remedies when your share amount is diluted because defense counsel did a good job recruiting additional defending carriers.

1. Let it ride. In an ongoing case your future funding request summary reports will show a negative balance, which means you’ll have no future payment until your negative balance is consumed by additional invoices. SHO-ME
2. In an obviously overfunded situation, a refund may be issued with council’s approval.
3. At final dismissal, after all reallocations, a refund will be issued if applicable
4. JDi Trust accounts bare interest, which is proportionally distributed to the carriers at time of reallocation.

Q. These cases are so complex. Does anybody really have an overview of what’s going on?
A. Yes, with more than 13 years experience and hundreds of administered cases, in addition to the invoice allocation function, JDi reconciles vendor matrices, the expense portion of atty invoices, paying carrier ledgers and a complete reconciliation. The end result as well as the work in process result always available on the web portal for all interested parties. Proprietary information restricted.

Q. Why JDi ??
A. Log into the web portal 24/7 for immediate financial information. JDi successfully turned this chaos into a completely user friendly workplace. The matrix, heart of the system, turns invoice allocation into a data entry function. Claims administered with multiple primary carriers, multiple tender and cessation dates, all with individual AI and subcontractor agreements. The buzzword is "reallocation".  VCC software houses a “moving tier” environment and responds in seconds. No expensive accountants, No waiting period for answers. See for yourself.  If you’re not near a computer, use your iPhone or PDA while you’re sitting in mediation. Technology is wonderful!

Q. The final question, how much?
A. Vendor Cost Control is the most economical way to track complex litigation. JDi fees are shared by all participants, like the other vendors. The cost is less than any merchant would pay to accept AMX, Visa or MasterCard.

Following Through With Substantial Savings For You

JDi Data Corporation relies on fifteen years of expertise as a financial software developer to keep VCC pricing competitive while minimizing per item expenses wherever possible. Our cost accounting fee hasn't changed since 2004 (2.5% of invoiced defense costs), and we strive to reduce expense costs for photocopies, faxes, and phone calls.

JDi does not charge a case "set up" fee, nor does it charge for the number of participants in a cost-sharing matrix. The 2.5% fee is a flat rate.

The V(endor) C(ost) C(ontrol) software (version 3.0) is web based and also includes one of JDi's new products, AccessADoc, an online document depository providing accessibility to expert invoices using the Internet and iPhone™. Real time - on line 24x7. CD Rom pricing comparative to copying.

Our pricing structure amounts to a substantial savings for our clients compared to our competition.

Besides the accuracy and efficiency of our software, we never charge for the number of participants nor do we have a setup charge. JDi's pricing structure affords one other substantial saving to a client: choosing JDI as a cost administrator provides that all monies collected by us are deposited to interest bearing trust accounts. Typically, the interest earned in trust exceeds JDi's invoices. And interest is returned to the carriers. This saving offsets the cost of using JDi as a third party cost administrator.