Appraisal panels have few rules to follow about what they can and cannot consider in determining the amount of the loss. In a case recently decided,1 a policyholder refused to continue in an appraisal because the panel was presented evidence of a subsequent loss. The policyholder argued that this breached the appraisal agreement.
Steve Badger sent me a legal brief in response to my Wednesday post, Are Insured-Appointed Appraisers Without a Public Adjuster License Breaking the Law? Badger’s brief is worth reading because it raises the issue of whether insurance appraisers can be biased and show favoritism to the party that appoints them. I know thousands of readers will point the finger at Badger, claiming that his insurance company clients always appoint biased appraisers. I agree. But my bet is that Steve Badger will say, “prove it!”…
The State of Florida, through its Department of Financial Services, is making a legal argument that those appointed as an appraiser by an insured must fall within the license requirements of a public adjuster. Florida is making this argument in an administrative hearing where they are trying to discipline a public adjuster.1 Buried in that case is the following argument by the Department, which, if successful, will change who may be appointed as appraisers: …
Insurance companies are rewriting standard appraisal language in many states where this is allowed. We have recently received numerous requests about these newly found contract provisions. For example, one from a Colorado form sent to us indicated that appraisal could only occur if both parties agreed to the appraisal.
Continue Reading Will Appraisal Remain Appraisal As We Know It?
The post, Can Appraisal Turn Into A Kangaroo Court, noted that a number of Connecticut courts describe appraisal as arbitration. Does Connecticut’s arbitration code determine the process of appraisal in Connecticut?
Continue Reading Does The Appraisal Process Follow the Arbitration Code in Connecticut?
Property insurance policies rarely have language describing the process of an appraisal to resolve controversies. I have often said this invites “kangaroo court” justice.
Continue Reading Can Appraisal Turn Into A Kangaroo Court?
A lawsuit filed by Church Mutual seems to be part of a trend of insurers analyzing high-value appraisal awards and not paying them. I recently mentioned the nationwide non-payment of appraisal awards by State Farm in
Why Has State Farm Stopped Paying Appraisal Awards? The instant lawsuit1 argues that the award inherently is subject to coverage determinations of unowned amounts because the appraisal panel said they never applied any of the policy conditions:…
Continue Reading Are More Appraisals Being Challenged By Insurers—Why Go to Appraisal If Insurers Will Not Pay the Appraisal Award?
My bet is that virtually all property insurance adjusters will say “yes.” Yet, in a recent Order in a pending case in Wisconsin,1 State Farm has currently won an argument that the method of repair is a coverage issue and not an issue for an appraisal panel.
Continue Reading Does Appraisal Determine the Method of Repair?
State Farm has a new claims process involving appraisal. The problem for many policyholders is that it is often resulting in payment for amounts less than the appraisal panel decided—sometimes, nothing is paid.
Continue Reading Why Has State Farm Stopped Paying Appraisal Awards?
The Property Loss Appraisal Network (P.L.A.N.) is holding its appraisal and umpire and certification course in Denver. It was a pleasure for me to speak at this event.
Continue Reading Should Umpires Be Allowed to Have Ex Parte Communications With Appraisers? — The Colorado 2015 Revision to DORA Bulletin No. B-5.26