Tag Archives: Class Action

Class Action Highlights Notification Requirements When Insurers Seek to Reduce Coverage Associated with “Renewals”

A recently filed proposed class action1 accusing California health insurance giant Anthem Blue Cross of using a "bait and switch" scheme that offered insurance policy "renewals" that did not clearly disclose major policy changes offers a great example of why the law requires insurers to notify insureds of reductions in insurance coverage.… Continue Reading

Sales Tax Missing From Sandy Claims Estimates Leads to Class Action Lawsuit

Merlin Law Group filed a class action lawsuit in Federal Court today alleging that sales tax was not being paid to many Superstorm Sandy policyholders with flood insurance claims insured by Selective Insurance. Some must be wondering that if policyholders cannot trust insurance company engineering reports, why should they trust that the estimates of damage … Continue Reading

Are Lenders Properly Protecting Themselves and Property Owners When Property Insurance Lapses? – Force Placed Insurance Series

When a borrower fails to obtain or maintain proper hazard, flood, or wind/hail insurance on property that secures a loan, the lender remains authorized to “force place insurance” on the property in order to protect the lender’s interest in the property. Sounds reasonable… right? On its face, it makes sense that lending institutions should have … Continue Reading

Paths to Mass Justice: “Private Regulatory Actions” to Enforce Policyholder Rights – Aggregate Litigation Series

In a recent conference on Class Actions and Aggregate Litigation,1 a recent trend in Class Actions was discussed that could have a significant affect on the property damage insurance claims handling industry: (i) “Private regulatory actions” – i.e., mass lawsuits based on a private right of action that challenge conduct not widely recognized as being … Continue Reading

Is there a class for that? Requirements For “Class Certification” – Aggregate Litigation Series

Let’s consider the following scenarios. For purposes of this discussion, we assume you handle hail claims all over Texas: For all claims statewide in which the carrier pays for full roof replacement, the carrier still denies payment for particular roofing system components. The carrier pays Overhead & Profit for Dallas claims, but denies Overhead & … Continue Reading

Smaller claims? Claims too small to pursue? Class Action might be the answer – Aggregate Litigation Series

Let’s consider the following: How many public adjusters and lawyers do you know who routinely represent policyholders on claims that total less than $500? How many public adjusters and policyholder lawyers do you know who refuse to resolve any claim unless the carrier pays for every lower-value damaged component in the roofing system? What if … Continue Reading

Insurers’ Pattern And Practice Of Hiring Independent Adjusters Known To Have Previously Disregarded Insurers’ Claims Handling Guidelines

I recently deposed corporate representatives from American Family, Auto Owners, State Farm and Allstate Insurance Companies and received the following admissions from some of those corporate representatives: the independent adjuster (often catastrophe adjusters) failed to follow key aspects of the insurers’ own claims handling guidelines;   the independent adjuster failed to properly document the claims … Continue Reading

Louisiana Citizens Property Insurance Loses Overhead & Profit Case

Louisiana Citizens Property Insurance Company has settled a state class action case, Press v. Louisiana Citizens Fair Plan Property Insurance Corp., for failing to fully pay overhead and profit to insureds. The proposed settlement, for $23 million, covers claims from Hurricanes Katrina and Rita.… Continue Reading

Texas Windstorm Insurer Settles 2,400 Hurricane Ike Slab Claims

The Galveston Island and Bolivar Peninsula slab cases are settling. There was an agreement between the Texas attorneys that nothing would come out in the press until the clients signed the agreements. Since even the Texas Windstorm Insurance Association (TWIA) participated with a press release, I assume that the gentlemen’s confidentiality agreement to wait on … Continue Reading

Will Homeowner Policies Cover Oil Spill Claims?

Jay MacDonald, of Bankrate.com, read a number of our posts and interviewed me regarding insurance coverage issues pertaining the BP Oil Spill. In his insurance blog post, Will Homeowners Insurance Absorb Oil?, he noted a number of my observations concerning the major issues facing policyholder insurance claims resulting from the BP Oil Spill:… Continue Reading

The BP Oil Spill Causes an Epidemic of Claims

On Bloomberg, I gave a television interview regarding the legal and financial aspect of claims and lawsuits which are being generated as a result of the BP Oil Spill. Lost profit and business interruption claims and disputes are not novel to those of us with commercial first party insurance claims experience. Every Sunday, Michelle Claverol, in our … Continue Reading

Accountants and Business Interruption Experts Will Play an Important Role Recovering BP Oil Spill Income Loss Claims

The tragedy of loss of human life and damage to the environment when discussing the BP Oil Spill cannot be overstated. The important role that accountants and business interruption experts will play helping prove financial loss cannot be overstated either. Experienced professionals like Bob Glasser, noted in yesterday’s Are Lawyers Pandering for BP Oil Spill Clients … Continue Reading

Are Lawyers Pandering for BP Oil Spill Clients Going to Get Sued for Malpractice in Follow-up Class Actions? A Guest Blog Regarding Business Claims By Bob Glasser Explains

There has been a disgraceful amount of pandering by potentially incompetent lawyers to sign up BP Spill Victims. Many of these lawyers are experienced only in personal injury cases, and many are not licensed in the affected states and are using the internet to lure clients. One attorney from California, who is not licensed in … Continue Reading

BP Promises To Pay “Legitimate Claims” But Leaves Room For Maneuvering

It appears that BP and others involved in the current oil spill may be taking their cues from insurance carriers. Insurers have always hedged their bets by saying that they would pay “legitimate claims” after disasters such as Hurricane Katrina and the Northridge Earthquake. This is a brilliant public relations strategy. It allows top executives … Continue Reading

BP Oil Spill Could Be Worse Than Any Hurricane Damage and Much More Widespread–Even the East Coast of Florida Could Be Impacted

I hate to make doomsday predictions, but there is a possibility that the BP Oil Spill could be worse than any hurricane or catastrophe that I have been involved with. I spent yesterday speaking with others about the current situation. Indeed, my father teaches those in the oil industry how to recover and react to … Continue Reading
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