Bad Faith "Close Call" in Texas

 

 

    In my line of work, whether or not an insurer acted in bad faith is an important topic. Policyholder attorneys must look at how an insurer conducted its investigation to ensure their client was treated fairly by the carrier. Whenever a client asks me whether something an insurer did constitutes bad faith, I rarely give a simple yes or no answer. These questions require an in-depth look into the facts and related case law to develop an informed opinion. But even where you think the facts prove an insurer committed bad faith, a court normally has the final say, and you may disagree with it.

Named Peril or All-Risk Insurance: What's the Difference and Which is Better in a Given Situation?

 

I have previously blogged about the pros and cons of purchasing earthquake insurance. This week, I write to discuss an associated topic - the differences between an all-risk and a named peril insurance policy, and which is better in a given situation.

Reconsideration of a Claim Doesn't Give Further Tolling Time in California

 

   We all know that when a statute runs, your rights to bring a claim are lost. In California, the insurance policy dictates how long an insured has to bring a lawsuit or claim against an insurance company in the event of a loss. During the time the insurer is adjusting the claim, the time limit is tolled and effectively, an insured's time to bring a claim stands still during the adjusting period.

Californians are Still Waiting for the "Big One" -- Preparedness is Key

 Earthquakes, and in particular, preparation for the “Big One,” was very much in the news this past week.

On October 18th, over 9 million Californians participated in the Great California ShakeOut, an annual earthquake preparedness drill. Although I was not one of the participants, I certainly remember from my grade school days that one should drop to the floor, take cover under a desk or table, and hold on.

In Insurance Policies, Words Matter

   How simple a statement is this: In Insurance Policies, Words Matter? This seems pretty easy. However, sometimes insurers interpret the words of their policies in manners that defy logic and harm their policyholders. Interpretation of words and language opens the door to argument, but in the insurance context, there are rules related to interpretation of insurance policies and exclusions.

Virginia Says YES to Public Insurance Adjusters

Starting January 1, 2013, public insurance adjusters will be allowed to assist policyholders in Virginia with their property insurance claims. Virginia, the birthplace of our nation, now joins the other 44 states that license public insurance adjusters.

According to the administrative announcement letter sent from the Commissioner of Insurance the law requires licensing of.

Missouri Jury Awards $11 million in Contingent Business Income Case - Understanding Business Interruption Claims

    I recently noted the importance of Contingent Business Income (CBI) coverage in Are Your Business Relationships Insured? – Understanding Business Interruption Claims. CBI coverage protects an insured from income losses caused by an interruption or slow-down in the operations of a “dependent business” (i.e., purchasers, suppliers, distributors or service providers). A Missouri jury understood the importance of this coverage, which I affectionately call “relationship insurance,” awarding $11 million in business income losses to a roofing material manufacturer that was affected by the shut down of its asphalt supplier.

What advantages of insurance?

How to do - insure or not to insure your life while taking credit? What are the benefits of insurance?

 

First, you must determine the question of whether this type of insurance is required for the mortgage program that you selected. If it is required - your choice defined. You will receive credit only if you insure these risks. If this type of insurance is not compulsory - is up to you, but it is recommended to insure these risks. The fact is that when a sudden illness incapacitated person may for a sufficiently long period. During this time, he does not have to be paid a full salary. This risk insurance to avoid a situation where a person incapacitated will have to look for money, not only for medical services, but also on the monthly payments on the mortgage.

 

 What Constitutes a Total Loss in Ohio?

With the Presidential election merely weeks away and fresh off the second Presidential debate, I turn this week to a political battleground. Numerous states such as California and Illinois are shoe-ins for President Obama, while other states such as Texas and Georgia are locks for Governor Romney. Consequently, both candidates spend most of their efforts on “swing states.” Among those swing states, Florida and Ohio, have the most delegates and seem to be receiving the most attention. Because I have already reviewed Florida total loss case law, I found fitting to spend my time this week looking at Ohio.

 

Why it is necessary to insure real estate?

  For what it is necessary to insure real estate? Many people often have a question of expediency of insurance of a real estate object. Some, in general, consider that insurance is a waste of money …

   To understand, whether it is necessary, in general, or not, it is necessary to weigh all pros and cons. On the one hand, the insurance will allow the owner of real estate to count at emergence of insured event on receiving insurance compensation for a covering of the suffered losses.

 McAllen Hail Storm Update

  I recently took a trip to McAllen, Texas, to survey the damage left behind after this year’s record-setting hailstorms. Driving through town, I could still see many broken business signs and battered wooden roofs that are awaiting repair. Off in the distance, I saw contractors repairing many roofs, including businesses and schools. It was apparent that the insurance claims process is well underway, and some insurers are taking good care of their clients, while others were not.

Commercial Property Insurance May Cover "Extra Expenses"

  Many businesses buy business interruption coverage to cover a loss of business income in the event of a covered loss. Business income provisions generally provide benefits for an amount of time designated in the policy, typically termed the period of restoration,1 or until the business is able to resume operations.

It is Always a Good Idea to Read Your Insurance Policy

Over the weekend, I saw a headline about a councilman in the Northern California city of Clayton who was convicted of felony embezzlement this past week… I thought the conviction would certainly not help his chances for re-election in November, but then I read further. This councilman’s day job is as an insurance broker. Apparently he took $159,000 in premiums from a Silicon Valley company but never forwarded the money to the insurance agency. I did not see any details about how this all transpired, but aside from being an anecdote for the “What Were You Thinking?” category, I asked myself, how did the insured not know it paid for insurance it was not getting? Did the insured not see or review a policy? Certainly, aside from the criminal aspects of this case, there are some civil implications as well.

Florida Middle District States Insurer's Argument To Dismiss Hurricane Claim On Statute Of Limitations Is "Not Well Founded"

   In recent weeks, there have not been as many published opinions and orders in Florida involving hurricane claims as there were a year or more ago. However, there was a recent case in the U.S. Middle District Court of Florida involving a Hurricane Wilma claim. It involved a familiar scenario where the insurer filed a motion asking the Court to dismiss the case claiming the policyholder’s complaint was barred by the statute of limitations, among other arguments.

In South Bay Plantation Condominium Association v. Seneca Insurance Company,1 the policyholder notified its insurer that the condominium association property sustained damage during Hurricane Wilma. On October 22, 2010, the association filed a complaint in Collier County, Florida, but failed to timely serve the insurer. On September 19, 2011, the association received an extension of 90 days to serve the insurer. On December 12, 2011, prior to service, the association filed a two-count Amended Complaint alleging breach of contract and requesting declaratory relief. The Amended Complaint also added a provision stating plaintiff is “also known as South Bay Plantation Associates, LLC.” The insurer was then served, and it removed the case to federal court on the basis of diversity of citizenship. The insurer filed its motion to dismiss in the federal court.