Recently in Insurance Category

Insurance experts may write reports and testify on property damages. Justia.com explains how property insurance may affect damages:

Property and automobile insurance may be available to pay some or part of a victim's damage award. Those involved in an accident or other incident resulting in property loss should contact their insurance providers immediately in order to preserve evidence. Insurance companies may choose to settle or litigate a claim for damages on behalf of their clients. An insurance company may also wish to recover its losses by pursuing a claim against a negligent third party.

For more, see http://www.justia.com//.

Thousands of homeowners in coastal Texas communities who were devastated by Hurricane Ike in September 2008 have unleashed a fierce storm of their own on area courthouses.  In recent weeks, hundreds Ike-related lawsuits were filed in courthouses in Houston and Beaumont, prompting court officials earlier this year to consolidate the claims into a multidistrict litigation (MDL) panel, according to a report in the Southeast Texas Record. In all, officials estimate there are currently more than 1,500 lawsuits filed regarding Hurricane Ike damages.

As part of the MDL, the consolidated claims will be heard collectively and possibly tried together if the parties cannot reach settlements or other dispositions before trial. In addition to promoting fair and equitable handling of the thousands of cases, the MDL process saves taxpayers money by streamlining pre-trial hearings and rulings on matters such as expert witnesses and other trial matters.

The lawsuits are based on homeowners’ claims that various insurance providers failed to pay for hurricane-related claims, the Record said. Frustrated policy holders who submitted claims for repairs to their homes say they have been left high and dry, without needed cash to begin or complete necessary repairs.

Excerpted from attorneyatlaw.com.

An estimated 2,000 people in Austell, GA, lost their homes or sustained significant damage in last week’s flood when damage exceeded flood map boundaries.  Many property owners whose homes were ruined had no idea that their standard homeowners insurance policy would not cover damage caused by a massive flood. Those who did understand the policies probably had no inkling that a property located outside the flood zone still faced a significant chance of getting hit. Mapping experts all over Atlanta are anxious to compare the floodplain maps with aerial maps of the flooding that actually occurred. Ernie Smith, the GIS coordinator in Newton County, said the flooding appeared to remain close to the predicted flood zone around the Alcovy and South rivers. But around the Yellow River the flooding appears to exceed the expected boundaries, he said.

Only 60 flood insurance policies were in force on Austell properties, federal data show. It’s unclear now how far off the maps are for the Atlanta area. In some parts of town, the rainfall that came with the recent storm exceeded the so-called “100 year flood,” the event that has a 1-in-100 chance of occurring each year.  The U.S. Geological Survey concluded last week that rainfall in parts of Cobb and Douglas counties was so intense that it had only a 1-in-500 chance of occurring. With such an event, the flooding would be expected to extend beyond the official floodplain.

Excerpted from www.ajc.com.

Research by Moneysupermarket.com reveals that a fifth of motorists in Britain admit to driving without insurance - up by a third on 2008. The price comparison site also found that 62% of people feel that those who drive without insurance should be punished harder. Although 15% felt that the government or providers should subsidize young drivers, as a greater proportion of young people are likely to drive without insurance. Insurance expert and head of motor insurance at Moneysupermarket.com Steve Sweeney says:

Premiums can run into the thousands meaning they are out of reach for many drivers. However, I don't think harsher punishments are the right way to combat this. We need a solution, not more fines. Some car insurance providers had piloted a pay-as-you-drive insurance scheme which saw lower premiums for Britain's younger motorists. It also made them think twice about driving their cars unnecessarily. I would suggest it is time for the insurance industry to revisit these innovative models to help drive down the cost of insurance.

The Government could also take a look at driving tests and whether they should be changed to reflect actual driving habits. More lessons for younger drivers, the inclusion of motorway driving and lessons at night could reduce the underwriting risks associated with younger drivers.

Excerpted from www.which.co.uk.

Monrovia is one of 22 southern California cities to pool their money to insure themselves against losses from litigation as a member of the Independent Cities Risk Management Authority (ICRMA). For a city, or any large employer, a settlement may appear to make more financial sense than continuing a court battle. But settlements can also attract more lawsuits, according to Michael Kaddatz, interim general manager of ICRMA.

Because of insurance and other considerations, decisions on whether to fight lawsuits in court are not made just on the merits of the case.  The rising costs of fighting a case can trigger ICRMA to settle out of court.  A range of factors is taken into account when ICRMA considers whether or not to settle a case, Kaddatz said: the consortium looks at the case facts, severity of the claim and even the tendencies of the court where the suit may be tried. The costs to prevail - attorneys fees, costs to hire expert witnesses, etc. - are also taken into account, he said.  Once a city reaches its deductible, which can range from $200,000 to $2 million, ICRMA has the authority to force a settlement if it believes continued litigation costs would outweigh settlement costs.

Excerpted from www.pasadenastarnews.com.

The U.S. Department of Transportation says the death toll on the nation's highways dropped in 2008 to 37,261, a 9.7 decrease from the 2007 total and the lowest level since 1961. The trend continued in the first quarter of 2009; the 7,689 traffic related fatalities from January through March represent a 9 percent decline from the same period a year ago.

Insurance expert Adrian Lund, president of the Insurance Institute for Highway Safety, says that in 1970 around 55,000 people were dying on U.S. roadways every year, so recent trends are definitely going in the right direction. Speaking at a conference held by the Insurance Council of Texas in July 2009, Lund said much of the recent decrease in traffic fatalities has a lot to do with the economic downturn.

"When the economy tanks one of the few good things about it is people are driving less, they are driving more safely and we don't kill as many people on the roads. That's unfortunately why we're down to 37,000 deaths in 2008," Lund said. Vehicle miles traveled during the first three months of 2009 declined by about 11.7 billion miles, according to preliminary data collected by the Federal Highway Administration. Lund suggested that those numbers will start to creep back up as the economy recovers.

Excerpted from InsuranceJournal.com.

If you are a pet owner, chances are your family friend will get an illness and need medical attention at least once or twice during their lifespan. So, how can people protect against the rising cost of medical services for their pets? Pet insurance may be the answer.  Pet insurance expert, Jared Katz writes:

If you’re considering pet insurance, here are three questions you should ask to find a plan that is right for you:

1.) What are my deductible options? Choosing a higher deductible will lower your monthly premium, but means your out-of-pocket costs will be higher each time your pet begins a new medical treatment. Choosing a lower deductible will increase your monthly premium, but means your out-of-pocket costs will be lower. Make sure that the pet insurance plan you choose offers you the flexibility to change plans and deductibles depending on your needs today and in the future.

2.) What is covered by the plan? Many plans reimburse pet owners for 80% of the cost of treatment after the deductible is met for illnesses, accidents, injuries and many other veterinary services. Make sure the plan allows you to visit any licensed veterinarian and provides coverage for emergency care. Find out if the plan will cover chronic illnesses such as diabetes or cancer and the specialists who treat those conditions. Consider asking about preventive care coverage, because many plans offer optional coverage for preventive measures such as annual exams, vaccinations or teeth cleanings.

3.) What is excluded from the plan? Most plans exclude the health issues that your pet has before you sign up for the policy, whether or not they were previously diagnosed or treated. These may include the congenital conditions your pet is born with or conditions that some breeds are susceptible to. Make sure the policy you choose clearly states what is and is not covered in a way that is easy to understand. And remember, buying a pet insurance plan when your dog or cat is young means they are less likely to have preexisting conditions.

Excerpted from www.singleminedwomen.com.

Insurance expert Mauro Convertini points out how post-manufacturer vehicle modifications can increase risk and insurance premiums.  He explains, “certain modifications can put motorists at a greater risk of having a collision, such as a lowered or raised suspension, or increasing the size of your engine. Your vehicle could become untrustworthy on the road and impact your safety as well as your access to coverage.”

Even modifications you would expect to better the insurance risk of your vehicle, like an improved brake system, may still increase the cost of insurance for the following reasons:

• The modifications might increase the value of the vehicle and then the insurer has to pay out more in the event of a claim.

• Modified vehicles often are more attractive to thieves increasing the risk of theft.

• Vehicles with performance modifications generally mean that the performance of the vehicle is improved which can lead to more severe accidents.

Remember an insurer could refuse to pay a claim and even leave you uninsured if you have not disclosed modifications to your vehicle. So before you invest time and money on a project that could raise your premium, call your broker or insurance company and verify that your insurance will remain valid.

Excerpted from metronews.ca.

The amended complaint filed July 31 in Los Angeles Superior Court by the San Diego law firm of Aguirre, Morris & Severson charges AIG with funneling money from insurance operations to gamble in derivatives. Maria Severson of Aguirre has said that the suit seeks to bar AIG from soliciting new business without revealing its financial status. The New York Times story quotes Mississippi insurance expert and forensic accountant Thomas Gober, who is assisting the San Diego firm in the suit. "The financial [statements] I have reviewed lead me to believe that AIG's equity is enormously negative," Gober says. "But for funding from the government, AIG is insolvent."

Mike Aguirre of the firm points out that the federal government's feeding of money to AIG is essentially "subsidizing wrongdoing." The company took more than $180 billion from the government and continues unlawful activities, "manipulating liabilities and assets in violation of insurance regulations." Also, state regulators, who are supposed to monitor insurance companies, have been neutralized, he says.

Excerpted from SanDiegoWeeklyReader.com.

Damage from the July 20 storm that brought large hail and high winds to Denver’s suburbs is estimated at $350 million, insurance experts at the Rocky Mountain Insurance Information Association said Monday. That would make it second costliest warm-weather storm in terms of insured damage to homes and vehicles in state history, the RMIIA said.

So far, about 52,400 claims have been filed — 32,900 claims against homeowners’ insurance and 19,500 against auto-insurance policies. The claims were focused on Lakewood, Wheat Ridge, Arvada and Englewood, the RMIIA said. The most extensive damage was to roofs, windows, vehicles and trees.

Earlier this summer, the stormy week of June 6-15 caused an estimated $161.1 million in damage to property and cars in Aurora, Parker, Centennial and Fort Collins. Colorado’s most expensive non-winter storm on record in terms of insured damage was a hail storm on July 11, 1990, that caused $625 million in damage, the RMIIA said.

Excerpted from DenverBusinessJournal.com.