The image needs to be added and then hidden. It will be added and hidden at position 0.
.Attachments.Add Fname, 1, 0
The 1 is the Outlook Constant olByValue
Once you add the image then you have to use "cid:FILENAME.jpg" as shown below.
Try this:
With OutMail
.To = tName
.CC = ""
.BCC = ""
.Subject = STAT.Range("C1").Value
.Attachments.Add Fname, 1, 0
.HTMLBody = "<html><p>Summary of Claim Status.</p>" & _
"<img src=""cid:Claims.jpg""height=520 width=750>"
.Display
End With
Screenshot