Allstate Back in Business, Fla. Court of Appeals Grants Stay

Allstate Back in Business, Fla. Court of Appeals Grants Stay: "Allstate Back in Business, Fla. Court of Appeals Grants Stay

January 18, 2008

Allstate and Allstate Floridian are pleased with the Florida First District Court of Appeal's decision to grant an immediate stay from the Florida Office of Insurance Regulation's order to cease writing new business.
Advertisement
Sponsored by IIABA - Big 'I' 2008 - Click here for more info.

In a written statement, Allstate said, 'The ruling allows Allstate's more than 1,100 Florida agents and their employees to continue to create jobs and serve their communities while we continue to provide the OIR with information.'"

Colorado is not Alone

Following up on the discussion regarding the recently passed Colorado law referenced below, it may come as a surprise to some that Colorado is not alone in passing a law that forbids insurance companies from preventing its insured from selecting which contractor will perform the repairs on the insureds property. I would guess that whether there is a specific law like this or not, no state would permit an insurance company from preventing its insured from using whichever contractor, or on auto claims, auto repair shop the insured preferred. Below is the text from the California Fair Claims Settlement Practices Regulations:

Section 2695.9. Additional Standards Applicable to First Party Residential and Commercial Property Insurance Policies
(a) When a residential or commercial property insurance policy provides for the adjustment and settlement of first party losses based on replacement cost, the following standards apply:
(1) When a loss requires repair or replacement of an item or part, any consequential physical damage incurred in making the repair or replacement not otherwise excluded by the policy shall be included in the loss. The insured shall not have to pay for depreciation nor any other cost except for the applicable deductible.
(2) When a loss requires replacement of items and the replaced items do not match in quality, color or size, the insurer shall replace all items in the damaged area so as to conform to a reasonably uniform appearance.
(b) No insurer shall require that the insured have the property repaired by a specific individual or entity.
(c) No insurer shall suggest or recommend that the insured have the property repaired by a specific individual or entity unless:
(1) the referral is expressly requested by the claimant; or
(2) the claimant has been informed in writing of the right to select a repair individual or entity and, if the claimant accepts the suggestion or recommendation, the insurer shall cause the damaged property to be restored to no less than its condition prior to the loss and repaired in a manner which meets accepted trade standards for good and workmanlike construction at no additional cost to the claimant other than as stated in the policy or as otherwise allowed by these regulations.


If you want to learn more about this, there are no shortage of blogs out there giving all kinds of advice on this topic. I enjoyed reading this one. http://premier-claim-consulting.blogspot.com/2007/02/whos-working-on-your-home.html

Colorado Legislation Regarding Managed Repair Networks

It appears there is a great deal of mis-information out there concerning legislation passed last year in Colorado that many believe affects companies like Alacrity. I have seen discussions on various contractor blogs claiming that insurance companies no longer will be able to utilize companies such as Alacrity, Contractor Connection, etc. as a result of the law. To set the record straight, the law prevents insurance companies from requiring that the insured use a particular contractor to make a repair. I cannot speak for other DRP programs, but that is not what Alacrity does. The insurers that work with Alacrity advise their insureds both orally and in writing that the choice of a repair contractor is entirely up to the insured. The insured is then offered the opportunity to have an Alacrity contractor come out and look at the job. If the insured wants to hire that contractor, they may do so, or they may decline to hire them.

I am posting the text of an opinion memo from a Colorado District Attorney interpreting this law. The memo itself can be found at http://www.co.pueblo.co.us/pdfs/scam_alert_10-07.pdf.

The memo states:

Informational Alert – October 2007
by Stacie Harris, Economic Crimes Unit
Choosing a Business to Repair your Hail Damaged Property
House Bill 07-1104
Since the hail storm in Pueblo County on August 23, 2007, the District Attorney's Office has
been receiving inquiries about insurance practices when it comes to selecting a business to make
your property repairs.
In a competitive market, which provides the lowest prices and highest quality of commodities
and services, an individual should be able to choose a repair business.
HB 07-1104 enacted by the Colorado Legislature this year does just that. It concerns the
"referral by an insurance company of an insured to a property repair business".
Basically, the bill "safeguards the public against monopolies, trusts and market barriers," and
"fosters and encourages competition by prohibiting unfair and discriminatory insurance practices
that impede fair and honest competition".
HB 07-1104 further states that "an insurer or its agent that issues or renews a policy that insures
real or personal property shall not directly or indirectly require that appraisals or repairs to the
property be made or not be made by a specified repair business." They are not to "represent that
the use of, or the failure to use, a particular repair business may result in the nonpayment or
delayed payment of a claim; nor are they to intimidate, coerce, threaten or induce by incentive to
use a particular repair business for repairs, except that an inducement by incentive does not
include warranty or guaranty repairs".
The insurer may provide a list of repair businesses for consideration, but must verbally or in
writing disclose to the claimant that the choice or who completes the repairs is up to the
claimant."

The full text of the Colorado law can be found at: http://www.state.co.us/gov_dir/leg_dir/olls/sl2007a/sl_249.htm

Florida's Allstate Fight Intensifies - WSJ.com

Florida's Allstate Fight Intensifies - WSJ.com:

By M.P. MCQUEEN
January 17, 2008

Florida's insurance commissioner took the unusual step yesterday of suspending Allstate Corp.'s license to sell car insurance in the state, in retaliation for its alleged failure to fully respond to a subpoena for information about homeowner insurance.

The regulator's action means that Allstate's subsidiaries can't sell any new auto policies there until the commissioner decides to lift the ban."

Another Scruggs Case - WSJ.com

Another Scruggs Case - WSJ.com: "Another Scruggs Case
January 15, 2008; Page A12

The Dickie Scruggs bribery case keeps getting curiouser, with yesterday's news that even the tort baron's former defense attorney has copped a federal plea.

Mr. Scruggs was indicted in November along with his son and three other lawyers for conspiring to bribe Mississippi Judge Henry Lackey. Two of the defendants have already pled guilty and are cooperating with the feds. And according to court papers released yesterday, Joey Langston, who had until recently represented Mr. Scruggs, has now pled guilty to conspiring with Mr. Scruggs in a scheme to influence a different judge in a separate case."

ISO: Insurers to Pay $6.5 Billion in 2007 Catastrophe Claims

ISO: Insurers to Pay $6.5 Billion in 2007 Catastrophe Claims: "ISO: Insurers to Pay $6.5 Billion in 2007 Catastrophe Claims

January 14, 2008

U.S. property/casualty insurers are expected to pay homeowners and businesses $6.5 billion for 2007 property losses from 23 catastrophes — the eighth lowest cost in a decade and the seventh lowest frequency for the same period, according to preliminary analysis by ISO's Property Claim Services Unit."

West Storm Losses Could Reach $600 Million

West Storm Losses Could Reach $600 Million: "West Storm Losses Could Reach $600 Million

January 10, 2008

Catastrophe risk modeling firm Air Worldwide estimates insured losses from the recent west coast winter storm that occrred January 4-8 could reach as high as $600 million, with the vast majority of those losses in California. The estimate reflects losses to property, contents, and direct business interruption and additional living expenses for residential, mobile home, commercial, and auto exposures. They do not include crop losses."

Despite Higher Costs, Insurers Encourage 'Green' Rebuilding of Homes

Despite Higher Costs, Insurers Encourage 'Green' Rebuilding of Homes: "Despite Higher Costs, Insurers Encourage 'Green' Rebuilding of Homes

By Lauren Villagran
January 10, 2008

Sean Walsh returned to his mother's San Diego home after the October wildfires to find it charred to its foundation. He says he plans to help her rebuild the trilevel, five-bedroom abode — happily used to host 19 grandkids — exactly as it was, only greener.
Advertisement

Two major insurers are launching 'green'' insurance programs that will let homeowners reconstruct their property with more environmentally friendly building materials, appliances and landscaping, even if it costs more than the replacement value stated in the policy."

CRM News: Customer Retention: Insurers Spending Big to Hang On to Customers

CRM News: Customer Retention: Insurers Spending Big to Hang On to Customers: "Insurers Spending Big to Hang On to Customers


Avoiding policyholders' fury makes particular sense these days because even as industry profits remain healthy, property and casualty insurers in 2008 are expected to experience weak growth in premiums, or insurance prices, the Insurance Information Institute forecasts. Many agencies are pouring money into technology and training to improve customers' experiences."

Nevada Allows Nonresident Adjusters to Assist with Storm Claims

Nevada Allows Nonresident Adjusters to Assist with Storm Claims: "Nevada Allows Nonresident Adjusters to Assist with Storm Claims

January 9, 2008

Due to the damages caused by the rain, heavy snow and high winds in the projected series of storms in northern Nevada last weekend, Commissioner of Insurance Alice A. Molasky-Arman has given temporary approval for nonresident insurance claims adjusters to adjust claims in the northern Nevada area for damage caused by the storms. This will assist insurance companies in expediting claims and assessing the amount of damages, she said."

Residents, Industry Analysts Evaluating Western Storm Damage

Residents, Industry Analysts Evaluating Western Storm Damage: "Residents, Industry Analysts Evaluating Western Storm Damage

January 8, 2008

While it's too soon to tally insured loss estimates, Nevada residents who fled nearly 300 homes flooded when a canal's earthen bank collapsed are returning to their homes where they will face damage left by the wave of frigid water that surged through the town.

The northern Nevada desert town was hard-hit by a West Coast storm system that piled up to 11 feet of snow in the Sierra Nevada mountains and toppled nearly 500 miles of power lines in California over the weekend."

Ferocious Storm Punishes Northern California, Depriving 1.2 Million of Power - New York Times

Ferocious Storm Punishes Northern California, Depriving 1.2 Million of Power - New York Times: "SAN FRANCISCO — A fierce Pacific storm howled into Northern California on Friday, bringing a treacherous mix of hurricane-force winds, torrential rains for millions of residents and blizzard conditions for many others."

1 million lose power in Calif. storm - Weather- msnbc.com

1 million lose power in Calif. storm - Weather- msnbc.com