(An edited version of this article appeared in the September 1996 issue of Claims Magazine)

Why Sam Spade Didn't take Telephone Recorded Statements

by Ronald J. Zaremba, CPCU,AIC,ARM

Gone, except to nostalgia buffs, are the days of Sam Spade, Johnny Dollar, Boston Blackie, Bulldog Drummond, Lamont Cranston, and Nero Wolfe. All were detectives (private investigators) on the radio in the Forties and Fifties. All had insurance companies as clients and Johnny Dollar was employed directly by an insurer. None ever took a recorded statement, much less a telephone recorded statement.

Personal interviews are best because you can get much more information in a direct in-person interview. Does the increased information gathered in an in-person interview outweigh the increased costs in gathering it ? Insurers more often than not are voting no. Taking written signed statements, a standard operating procedure for adjusters, has become rare. It is becoming such a lost art form for adjusters that if written signed statements are wanted, insurers now consider hiring private investigators instead of adjusters to take them. After all, Sam Spade and Johnny Dollar as private investigators, were experienced in taking signed written statements. But so are a lot of adjusters. In fact, most independent adjusters are trained and experienced in taking written signed statements. A little more work could be done on penmanship, though (just kidding).

In situations where the honesty and the truthfulness of the witness is important, the interview should be conducted in person. The statement does not have to be handwritten but it important that it be taken in person. The reasons are all the available means in an in-person interview that can be used to check the veracity of the witness. If you can recall Sam Spade and Johnny Dollar on the radio in the Fifties, then you probably know more reasons to conduct in-person interviews than the reasons I have listed below. There are many good reasons to conduct in-person interviews, but here are ten to start with:

1) First and most importantly, you get to use all your senses; sight, hearing, smell, and feeling. So much of our inter-personal communication is non verbal. People have a physical presence and you must be there, next to them, in order to experience it. Even the distance maintained between you is a clue as to their background and attitude. For most people, the distance within one and one half feet of their body is considered intimate, one and one half to four feet, personal; and four to seven feet, social. Nervousness, fear and apprehension can be sensed, without being seen or heard. So can peace and serenity.

2) Does the appearance and dress of the interviewee corroborate what he or she is telling you ? Do they look, sound and smell the role ? Make notes of your observations,

particularly those areas that are inconsistent with their story; hair style, cleanliness, neatness, speech, clothes, jewelry, body marks, prosthetic devices, alertness. What is their attitude ? Toward others ? toward you ? toward themselves ? Ask why these inconsistencies exist, either of the interviewee or from those who know them.

3) If you want to negotiate, do so on your home turf. You can control your home turf (hopefully). If you want to gather information, go to the other parties home turf. In their home, you will learn what is important to them as well as important clues from where they live, housekeeping, maintenance, furniture, magazines and reading material(or the lack of it), what they have on display, collections, photographs, musical material, pets, and so on. Now it is quite possible that they can 'set up' the appropriate environment; but usually they are so close to their home environment that they do not see what it reveals. Even so, if you suspect a possible 'set up", arrive unannounced or early. Being early is usually a good idea anytime.

4) In the same home or work environment, does it match their claimed life style ? If you are in their home for an hour, it is difficult but not impossible for them to conceal real clues about their lifestyle. Does their occupation support what they have or claim to have ? What other sources of income do they have ? Are they living alone ? relationships ? with whom ? what is their apparent life style ? Who called ? Is it consistent with the story they gave to you ? The reason you are there is to gather information. Pay attention to everything, not just the facts of the claim they are telling you. Get them committed in their statements on the vital information and then investigate the inconsistancies.

5) What people do with their hands tell more than they may want to be told unless they consciously control them. Most people do not consciously control their hands, thus their hands may be more truthful than their lips. Handshakes are a great American custom. What you can learn from a handshake may not apply to non-Americans. Is the handshake overly friendly ? moist ? weak ? not offered ? Finger drumming indicates impatience. The wringing of hands indicates severe strain. "Steepling" of the hands indicates supreme confidence. Where are they keeping their hands ? What are their hands doing ? The hands are an important part of body language. We all have met people who could not talk if you tied their hands.

6) It has been said that the eyes are the portals of the soul. I'm not sure about that but a person's eyes can be very revealing. The importance of eye contact varies with cultural background and even within the United States. Generally Americans judge veracity by solid eye contact; however, some cultures avoid any eye contact. It should be kept in mind that people can and do lie while they look you in the eye. For Americans, generally, good eye contact is necessary for good communication. The eyes can give you a lot of clues. Are they squinting ? wide opened ? rapidly blinking ? Rapid blinking may indicate the person is exaggerating, lying or uncomfortable with what they are saying.

7) Smoking is generally thought to be a sign of nervousness. However, most people will not smoke unless they are relaxed. Smokers will hesitate to smoke if they are uncertain or thought to be in trouble. They will continue small talk until they are more certain of the circumstances. When they light up, they are signaling that they are comfortable with the conversation. Knowing this, they may light up trying to give the appearance of being relaxed, even though they are not. Observe the manner in which they smoke. Their nervousness or lack of it will soon be apparent.

8) A person whose head is upright and who is looking right at you is probably somewhere else mentally. A slight tilt of the head is a good sign of attention. Looking over their glasses is a sign of disapproval or disbelief. Repeated cleaning of glasses can be a stall for more time to think. Removing the glasses and setting them on the table may indicate that they no longer are listening to you.

9) Voice volume and inflection are discernable over the telephone. However that is about all you get. You can not observe over the telephone all the body language that goes with what they are saying and which belies the truthfulness of what they are saying. Did they wink ? Lean forward ? Fold their arms ? Unfold their arms ? Cross their fingers ? If you are taking a written statement from the witness, you want to write it in their own words. This forces you to pay attention to not only what they say but how they say it. Because you are more alert, you are usually more apt to catch their inconsistencies which detract from their truthfulness. Thus you are better able to question and judge their credibility. You will develop an intuitive response to the people you interview and will "know" if you should get on your boots before wading in any further. Don't ignore your "gut feelings", the non-quantifiable communications you have received from the witness.

10) It would seem obvious that if you are taking a written statement from a witness, you will want them to read and approve what you have written. In preparing the statement, it is customary to make small mistakes on each page for the statement giver to correct and thus acknowledge that they have read it and approve it. If the witness does not speak your language, chances are very good that he does not write or read it either. Even if the witness speaks your language, it is important to verify that they are literate. Be careful, illiterates are usually very good at faking literacy.

In all claims, the truth is important. It may be expedient to interview the parties by telephone; however, you will learn much more in person because the witnesses will communicate much more than any telephone can ever deliver. At the same time, you can engender greater trust, confidence and cooperation because you too do communicate better in person, making your job easier. Your chances can increase dramatically in detecting frauds when you interview the parties in person. Insurance is a personal business and it works much better when you conduct it in person. Sam Spade and Johnny Dollar knew that, and so do you.