A recent and significant Order by Judge Stanley Mills discussed claims resolved through appraisal and complaints of improper claims conduct made through formal Civil Remedy Notices. The matter involved a sinkhole claim that took nearly three years before full payment was made. The State Farm policyholders spent thousands of dollars on experts and appraisal costs … Continue Reading
Insurance agents are some of the nicest people I have ever met. They are often trained in salesmanship and influence. Many participate in community activities for professional networking reasons. To effectively sell insurance, you better be a swell person and know a lot of people.… Continue Reading
State Farm lobbyists are going to have their work cut out for them after Paige St. John‘s story, HOW STATE FARM CASHED IN ON A CRISIS, documented how State Farm used financial slight of hand and friendly politicians in the Florida legislature to help create an insurance crisis leading to greater profits through a re-insurance … Continue Reading
Fire insurance claims spike on Thanksgiving Day. I became interested in this fact after viewing the following commercial by Allstate: … Continue Reading
Slabbed has been dogged regarding its reporting on the Mississippi qui tam litigation involving State Farm. A recent post, Rigsbys file “Motion to Reconsider Scope of Proceedings in Light of Evidence Adduced in Discovery” – ask Court for additional time to conduct Discovery into “the Scheme,” provides some insight regarding the flood adjustment techniques required … Continue Reading
The media is trying to scoop each other on the five year anniversary of Hurricane Katrina. In State Farm’s hometown of Bloomington, Illinois, the Pantagraph ran a story about State Farm’s Hurricane Katrina litigation. A massive and unfinished novel could be written on that subject. I found the article by Ryan Denhem, How State Farm Fought Through … Continue Reading
Social Media investigation can lead to fascinating results. In this case, Twitter led me to a television report regarding State Farm’s testing of hail damage. Many policyholder attorneys should probably consider discovery from State Farm on this topic if they have a dispute involving hail damage. I wonder what other tests State Farm and other insurers … Continue Reading
The Gulf Coast has hot and calm days that are merciless for those on the water. I recall my teenage years in Mississippi, stripping to briefs and jumping off a sailboat that was going nowhere fast on a calm morning race in Mobile Bay. I was thinking about that while attending a deposition of Chris … Continue Reading
This is a continuation of State Farm Agrees With Chip Merlin Regarding Claims Handling Obligations and State Farm Claims Handling Standards. These are some of the standards, which are the recognized insurance industry obligations of good faith claims handling, that State Farm teachs to its claims adjusters.… Continue Reading
State Farm has a First Party Coverage Seminar which sets forth the claims handling standards that are fairly standard throughout the insurance industry. The instructor’s manual to this seminar should be studied by insurance coverage counsel. It sets forth very explicit claims adjustment standards and even explains the purpose for many of them. I will … Continue Reading
I have been in a networking seminar regarding Safeco and Liberty Mutual insurance companies all day. One of my colleagues provided me some materials from State Farm. I am posting a couple of them for your review.… Continue Reading
This Property Insurance Coverage Blog set record visits last month. Thank you! I noticed a significant drop as the Easter weekend started. The Florida legislature took a well deserved breather last week as well. So, it seems like it is a good time to get caught back up.… Continue Reading
Every now and then, bizarre losses are reported in the news that start me wondering whether there is any insurance coverage for the poor souls suffering through a disaster. An article, "What One Homeowner Learned from 15,000 Gallons of Raw Sewage" points out just how illusory the hope of "full coverage" is under the modern all … Continue Reading
Water pipe breaks arise from all kinds of situations. Following Hurricane Hugo in South Carolina, I represented a number of hotels that were being repaired and then had significant water damage caused by a freeze before the heat could be restored. This winter’s cold weather reminded me of these losses, and I came across a … Continue Reading
In a post last September, State Farm Agents are Fighting State Farm for Economic Survival, I wrote: "Again, for many different reasons, I hope McCarty and State Farm can work out a deal."… Continue Reading
The Florida Office of Insurance Regulation (OIR) has entered a Consent Order today resolving the attempt by State Farm to leave the Florida property insurance market.… Continue Reading
Our firm is currently running a survey of all Liberty Mutual advertising in Texas since Hurricane Ike struck as part of litigation we have against it and Safeco. Modern insurance companies compete for customers through advertising. Many make some pretty bold statements in the advertisements to win our hearts and minds.… Continue Reading
While reading Michelle Claverol’s post yesterday, Understanding Replacement Cost Coverage: Valuation Issues in Florida, Part 5, I had some personal thoughts on two cases she discussed. I also want to emphasize a very significant case we noted last week in Court Finds State Farm Cannot Withhold Money After Appraisal Award for Sinkhole Remediation. There are … Continue Reading
Julie Patel, of the Sun Sentinel, reported that Florida officials and State Farm appear to be working towards a mutual solution to keep State Farm selling property insurance in Florida: Insurance Commissioner Kevin McCarty told the Florida Cabinet Tuesday that State Farm may not leave the state’s property insurance market as planned and the state … Continue Reading
While taking the deposition last week of a Pilot Catastrophe flood adjuster that was a former State Farm claims representative, I was thinking about some recent good news for State Farm. The first had to do with a Palm Beach Post report concerning State Farm possibly continuing to write insurance in Florida. The second had … Continue Reading
Can you imagine a business that is afraid of its own customers? Imagine a business on trial in front of it own customers who were going to judge its products or services and that business was certain those customers would not judge them favorably. What kind of product or service would you think that business … Continue Reading
My appointment by Florida’s Governor Charlie Crist to the Citizens Mission Review Task Force afforded me the opportunity to learn about and have a small voice in the Florida insurance marketplace. At War With the Weather: Managing Large-Scale Risks in a New Era of Catastrophes is a significant academic work which our regulators and legislators … Continue Reading
(Note: This Guest Blog is by Ruck DeMinico, Knowledge Manager with Merlin Law Group). In State Farm Florida Ins. Co. v. Seville Place Condominium Ass’n, Inc., No. 3D08-2538, ___ So. 3d ___ (Fla. 3rd DCA, October 14, 2009) Florida’s Third District Court of Appeal held that an insured could amend their complaint to add a bad … Continue Reading
Yesterday, Chad Hemenway, associate editor of BestWeek, reported that State Farm and Florida’s Office of Insurance Regulation jointly moved to delay the administrative hearing that will address State Farm’s move to leave Florida’s property insurance market. The saga continues….… Continue Reading