In California, the moment an insured obtains a repair estimate that exceeds the insurer’s estimate, the insurer must either pay the difference or adjust its original estimate. This rule is set forth in the Fair Claims Settlement Practices Act, 10 Cal. Code Regs. § 2695.9(d). Generally, whenever anyone makes an insurance claim, the insurance company … Continue Reading
It is becoming more and more common that insurance companies are recommending and suggesting that their “preferred vendors” perform loss repairs. California offers insureds protection if they opt to use a preferred vendor. Under the Fairs Claims Settlement Practices Regulations, if an insurer recommends a vendor, the insurer is essentially required to guaranty that vendor’s … Continue Reading
Many policyholders do not have enough insurance to replace their buildings or homes after a total loss. Often these policyholders were assured by their agents or insurance companies at the point of sale that their limits were sufficient. And many times these assurances were based on estimates that fell below the minimum standards set by … Continue Reading
Hurricane Michael insurance claims continue to take up a lot of time with Merlin Law Group attorneys. The photograph above is from dinner last night in Panama City, Florida, where the issues and problems of getting insurance claims resolved fully were the hot topic of discussion. Hurricane Michael has a lot of slow and low … Continue Reading
Assignment of benefits contracts for property damage claims may be going the way of the dinosaur in Florida. A recent Florida Insurance Bulletin notes that the new statute allows insurance companies to issue policies preventing an assignment of benefits if insurers offer a premium discount.… Continue Reading
One of the strongest tools in an insured’s arsenal is a good public adjuster. If lucky, most insureds will only suffer a property loss once or twice in a lifetime. Not dealing with claims handling on a day to day basis, navigating the claims process can be not only confusing and tedious, but costly as … Continue Reading
The Colorado Department of Insurance has proposed eliminating one of its long-standing bulletins requiring insurance companies to pay contractor overhead and profit rather than deduct the amount until incurred. Such an elimination is obviously against policyholder interests and is the result of insurance industry lobbyists making inroads with Colorado insurance regulators who are supposed to … Continue Reading
An overwhelming number of claims are settled on a mutual understanding with respect to the covered loss and the amount necessary to indemnify the policyholder. The question is then: What can a policyholder do if the insurance company is taking an unreasonable amount of time to tender settlement payment. Florida law remains focused on strong … Continue Reading
A federal lawsuit has been filed challenging the free speech rights of solicitation by contractors and public adjusters.1 We have discussed this topic before in Public Adjusters Win Free Speech Rights and Ability to Promptly Help Policyholders, and History Repeats Itself When Public Adjusters Win Free Speech Rights.… Continue Reading
The California Supreme Court issued a unanimous ruling yesterday requiring insurers to communicate “complete” replacement cost estimates to insureds.1 The ruling not only found the regulation requiring this action to be well within the Insurance commissioner’s authority, but found the basis for the regulation to be well founded. It is a wonderful victory for policyholders … Continue Reading
Rarely do insurance commissioner bulletins warn insurance companies of paying too much or that consumers are not entitled to insurance benefits. Most departments of insurance only write bulletins because insurance company adjusters pay far too less to similarly situated consumers suffering from the same loss. Of course, insurance company lobbyists now go into overdrive to … Continue Reading
Unauthorized Practice of Public Adjusting (UPPA) has become the predominant discussion among public adjusters at virtually every public adjuster association meeting I attend. Brian Goodman, general counsel for the National Association of Public Insurance Adjusters (NAPIA), said that UPPA is now the most important issue facing public adjusters because licensing of the profession is accepted … Continue Reading
On May 11, 2015, Oklahoma Governor Mary Fallin signed into law SB 439, which modifies and changes current laws relating to public insurance adjusters. The bill, first introduced by the Oklahoma Senate on February 2, 2015, “aims to protect Oklahoma storm victims, and ensure transparency and accountability in the insurance adjusting process.”1… Continue Reading
As a follow up to my blog of November 5, 2014, Fair and Impartial Appraisers in Colorado, I wanted to write on DORA Regulation 5-1-14 which deals with penalties against insurance companies for failing to promptly address first party property claims in Colorado.… Continue Reading
Should any debtor hold on to money that is agreed owed? It seems like an absurd question, but in the insurance claims world, many insurance companies know that it is very profitable to "play the float." Even the most famous insurer admits that "playing the float" is very profitable, as I noted in Playing the … Continue Reading
Yesterday, I was having a discussion with a public adjuster about a claim where the insurance company was depreciating the cost of labor in addition to the damaged property when calculating actual cash value (ACV). In California – and using the parlance of my 11-month year old son – that is a "no no." Under … Continue Reading
Robin Westcott announced through a press release that a Homeowners’ Policy & Claims Bill of Rights Working Group was formed. The press release indicated the following:… Continue Reading
I am writing this blog in terminal C at Salt Lake City International Airport after spending two days in conference with my Merlin Law Group colleagues and one of the foremost insurance experts in the nation. This eye opening seminar confirmed that many in the insurance industry are not good neighbors, they are not there … Continue Reading
This spring, a hot topic for Florida public adjusters has been proposed changes to sections of the administrative code that govern public adjusters. Listen to the complete 25-minute audio recording from the recent DFS hearing here. Two of the proposed changes have the Florida Association of Public Adjusters taking action and explaining ramifications that may … Continue Reading
Insurance is a highly regulated industry because insurance companies have a long history of failing to honor promises, going bankrupt or finding unethical novel methods to gain a competitive edge. State insurance commissioners and attorney generals are charged with enforcing laws and regulations protecting consumers. I posed a question about whether state insurance commissioners and … Continue Reading
The Florida Department of Financial Services proposed changes to very important sections of the administrative rules that govern public adjusters and, in part, other adjusters in Florida. I posted about the proposed changes in Take Action Florida Public Adjusters: The Florida Department Seeks to Change the Rules Again.… Continue Reading
The Department of Insurance is looking to change the way adjusting is done in Florida. Two weeks ago, I posted about the how problematic some of these proposed changes could be to the industry. On Thursday, May 9, 2013, the Department will have a hearing about the proposed changes. One of the changes our readers … Continue Reading
The Department of Insurance is looking to change the way adjusting is done in Florida. Rule changes to 69B-220.051 and 69B-220.201 have been proposed. Here is the summary from the Department: The proposed changes to Rule 69B-220.051, F.A.C., clarify the responsibilities and requirements of public adjusters and public adjuster apprentices, define the terms “direct supervision” … Continue Reading
Two recent posts, The Current State of Appraisal and How Mutual Terms Can Prevent Appraisal and Ethics of Appraisers—Just Wishful Thinking? raise the question whether the appraisal process and appraisers should be regulated. In my speech at the Windstorm Insurance Conference last week, I predicted regulation was certainly coming because neither insurers nor policyholders should … Continue Reading
