Governor Gavin Newsom recently signed Senate Bill 240, which enacts new laws that regulate out of state independent adjusters. The law also addresses claim adjustment for declared emergencies. The new laws, described more fully below, became effective on October 3. 2019.
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State Legislation
California’s Insurance Adjuster Act of 2019 Is Coming
California’s Senate Bill 2401 is making its way through the legislature and will hopefully bring some important changes to the way insurance companies train their out of state adjusters who handle California based policyholder’s claims. The bill, also known as the Insurance Adjuster Act of 2019, was created by Senator Bill Dodd to eliminate confusion and delays caused by out-of-state or unaware adjusters.…
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Remand From Federal Court After Passage of the “Hail Bill:” Section 542A.006 and the Election of Legal Responsibility
The infamous “Hail Bill” will be celebrating its second birthday this September 1, 2019. Whether there will be any celebrations is another question. The “Hail Bill” – the Chapter 542A amendment to the Texas Insurance Code—covers first-party claims arising from “forces of nature.”1 Within that chapter, one notably section is 542A.006, which allows an insurer to elect to assume its agent’s civil liability for the agent’s conduct related to the handling of a claim. This section has been seeing a lot of litigation of late.…
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Florida’s AOB Reform Bill Became Effective July 1, 2019: How Does This Affect Me?
My primary role as an attorney at Merlin Law Group is to represent the best interests of policyholders and get all benefits owed following a loss. But, I call it like I see it when approached with debatable inquiries from contractors and restoration companies.…
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Contractors Beware Taking AOB Contracts For Restoration Work: New Policy Forms Restricting AOB Contacts Discussed By Recent Insurance Bulletin

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.…
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Pending California Property Insurance Legislation – A Continued Expansion of Insured’s Rights
The string of natural disasters that struck California in 2017 and 2018 resulted in new legislation expanding the rights of California policyholders. The California legislature has drafted and introduced new legislation that would continue to expand policyholders’ rights. …
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No Waving of Deductibles Bill: Texas HB 2102
The Problem: Waiving insurance policy deductibles (“you scratch my back and I’ll scratch yours”) has been common place in Texas since 1989 and came about as the result of a poorly worded statute passed that same year that contractors have basically ignored. Contractors who have broken the 1989 law by waving deductibles (primarily roofing contractors) are known as “deductible eaters.” Homeowners were lured into signing contracts with the deductible eaters based on promises, for example, of a “free roof.” And then, homeowners/policyholders were duped into committing insurance fraud when in submitting a request pursuant to their policy for replacement cost (RCV) hold-back, they failed to tell their insurance company that the deductible part of the claim had not been incurred. What this means, again for example, before the new law, is that the roof job a homeowner got where the $2000 deductible was waived or “forgiven” and buried in other ways in the contractor’s paperwork, will now be required as payment out-of-pocket and proof that it was paid before the insurer will pay the RCV hold-back.…
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Potential Changes to California’s Insurance Code Section 2051 Impacts Total loss Valuation on ACV Policies
Are California homeowners entitled to collect actual cash value (“ACV”) or replacement cost values (“RCV”) for property claims? It depends on what type of policy you have and whether you suffered a total or partial loss of your property. What’s more, in a few weeks, the California Assembly may vote to change existing law. To understand what homeowners are entitled to, we must first determine whether the policyholder has purchased an RCV or ACV policy and to analyze impact of depreciation.…
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Florida Investigative Report Highlights Florida Legislators Taking Away Policyholder Protections
Reporter Steve Andrews ran a televised story highlighting that some Florida legislators are listening to insurance company lawyers and lobbyists rather than taking care of their constituents in Consumers Would Take Hit If Insurance Lobby Gets Its Way, and Change in Insurance Law Would Take Away Consumers’ Day in Court. The story references Florida House Bill 751 filed by Representative Alex Andrade. Senate Bill 1464 filed by Senator Jeff Brandes from St. Petersburg is just as bad. It is obviously written by insurance company lawyers and lobbyists wanting to make it more difficult for policyholders to bring actions holding delaying, denying, and underpaying insurance companies accountable.…
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Insurance Regulation and the Attack on Admitted Insurance Carriers in Florida
Insurance regulation is important. Unlike other commercial products, insurance is a product that serves the public trust. Without regulation, history has proven that insurers cannot control themselves. They go broke just when we need them the most and their claims practices, if unchecked, can be atrocious.
States with a strong admitted marketplace should be encouraged. States without a strong admitted marketplace run the risk of outrageous rates, bankrupt insurers and the lack of an insurance market which meets the needs specific to that state. Florida, with its peculiar geographic risk to hurricanes, especially needs a strong admitted market.…
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