The First Named Storm of the Season Has Formed – What Do I Need to Know?

Hurricane season has begun early this year, with the first named storm of the season, Alberto, making its appearance just days before the official season start date, which is June 1st. Tropical Storm Alberto is headed for the Gulf Coast and is expected to bring tropical storm conditions, including flooding rains, coastal storm surges, and high winds over the holiday weekend. Alberto is expected to strengthen within the next 72 hours, and may intensify to hurricane strength. Alberto’s winds have the capability of producing tornados. Additionally, the risk of flooding is heightened due to the heavy rain that has occurred over the past couple weeks. Continue Reading

Farmers Insurance Recognizes 25% Contractor Overhead and Profit!

Overhead and Profit can generate a lot of debate when insurance company adjusters are looking to meet their adjustment severity goals and lower claims payments. But have you ever wondered how those same insurers instruct their sales people to calculate overhead and profit when they are calculating the premiums that they charge their customers for the same coverage? Continue Reading

Bad Faith Claim Investigation May Subject Insurance Company to Private Remedies Under Consumer Protection Law

Last month, a New York Supreme Court affirmed that insurance companies are subject to that state’s consumer protection law, General Business Law § 349. In 37 West 24th Street, LLC v. Seneca Insurance Company, Inc., the trial court denied Seneca Insurance Company’s motion to dismiss the plaintiff’s claim under that statute.1 Continue Reading

To Plea or Not to Plea? Insurer’s Denial of Coverage for Residential Fire Loss Upheld

I recently came across an interesting opinion, Fuller v. Mercury Insurance Company of Georgia,1 where the Eleventh Circuit Court of Appeals discussed the effect of a guilty plea on a policyholder’s civil action against their insurance carrier. The opinion stemmed from a residential fire loss and the insured’s subsequent claim for benefits under her homeowner’s insurance policy. Continue Reading

Are TWIA Appraisals Ever Fair or Impartial?

TWIA (short for Texas Windstorm Insurance Association), frequently referred to as the Texas windstorm insurance carrier of last resort, just can’t seem to get this insurance claims handling thing right. A conclusion quite alarming considering that insurance claims handling is one of the primary functions of its business. At this point many are left wondering if TWIA will ever get it right. Continue Reading

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