Two New Class Actions filed against Geico and Progressive Insurance regarding non compliance with state claim handling regulations

April 18, 2012

Our auto claims professionals will be interested in reading these updates posted over at Insurance Class Actions Insider here which indicates two new class actions have been filed against auto insurance companies Geico and Progressive claims involving alleged violations of state claim handling regulations:

http://www.insuranceclassactions.com/auto-insurance/new-auto-insurance-class-actions-against-geico-and-progressive-focus-on-state-law-compliance-issues/


Louisiana Citizens Insurance Company offers $80 million to settle fines over claim handling delays from Katrina and Rita hurricanes

February 10, 2012

There are numerous articles out this week regarding Louisiana Citizens Insurance company and attempts between all parties involved in settlement negotiations.

This article states that yesterday Louisiana Citizens Insurance Company offered $80 million to resolve this class action suit, Geraldine R. Oubre et al v. Louisiana Citizens in the 34th Judicial District Court in Jefferson Parish , with approximately 18,000 policyholders while approximately 6,500 other claims still are pending at the carrier:

www.houmatoday.com/article/20120209/WIRE/120209535/0/entertainment02

The next article from NOLA.com  of 1/31/12 explains the US Supreme Court refused to delay the judgment against Citizens of Louisiana:

http://www.nola.com/crime/index.ssf/2012/01/high_court_refuses_to_delay_ci.html

This next article from 2/3/12 discusses the $6 million fees to seize the assets to the sherriff’s office following the Supreme Court 1/31/12 decision:

http://legalnewsgroup.com/2012/02/03/louisiana-citizens-goes-to-u-s-supreme-court/5040

In a different class action titled CHALONA v. LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION No. 2008-CA-0257. Fourth Circuit, the Louisiana Supreme Court had granted class action to this group as well. For complete details you can view this article which explains how the two class actions may overlap but says in part:

“While it is possible that some individuals could be included as members of both the Oubre class and the instant class, the relief sought in the two cases is not the same.   Thus, a judgment in the Oubre lawsuit would not have the effect of res judicata in the instant suit.   Although the defined classes in the instant case and the Oubre case may overlap, we do not find that the court was manifestly erroneous in denying LCPIC’s lis pendens exception.”

http://caselaw.findlaw.com/la-court-of-appeal/1003260.html

I’ll add articles to this blog as I can locate updated information regarding the settlement of these cases. If you can provide links to court documents or pdf of same, let me know and I’ll add them to this topic. We’d also appreciate any legal counsel who would like to interpret this information into layman’s terms for the rest of us and what impact this will have on other state run insurance companies in the future.

All articles located do say that these fees will be passed on  as assessments to insurance carriers doing business in the state and thus ultimately on to policyholders.

#Update 2/11- Here’s another article discussing the settlement negotiations and criticism for the negotiations being made public:

http://www.propertycasualty360.com/2012/02/10/talks-to-settle-louisiana-citizens-class-action-be?t=regulation-legislation


Bill Introduced in MS to have feds decide wind vs water on claim disputes- Your thoughts?

May 31, 2011

A bill has been introduced in Mississippi to have feds decide wind vs water on claim disputes on hurricane losses. I have shared this link with several Linkedin groups for opinions and would like to share it here as well. Feel free to post your comments in response to this story. Do you think it will pass? What effect if any do you see as to how this would impact insurance carriers willing to write coverage in MS?

http://blog.al.com/live/2011/05/bill_would_let_feds_decide_win.html


Filed Court Documents on Class Action filed against Worley and BP by Adjusters on Overtime Issues/Daily Rate- Part II

February 11, 2011

We previously posted about the information learned about a Class Action lawsuit filed on behalf of BP adjusters working oil spill claims.

Here is a link to the original post if you missed it:

https://dimechimes.wordpress.com/2011/02/09/adjusters-handling-bp-claims-file-a-class-action-lawsuit-on-two-issues-overtime-pay-and-failure-to-receive-65-of-daily-fee-per-contract/

This post now contains the two Complaints filed by the adjuster seeking to represent the Class of adjusters who worked the claims:

Altier v Worley BP et al gov.uscourts.laed.145020.1.0 This is the Complaint filed seeking Class Action on Overtime Pay Issues although they were independent adjusters working on a daily rate

Alteir v Worley only  This is the Complaint filed seeking Class Action on alleged failure to pay BP Adjusters 65% of the daily rate they received per Adjuster

Thank you to the source who provided the copies of the court documents. We will continue to follow this case and post updates as we learn them as we feel this is a significant case that all carriers and adjusting firms as well as adjusters will follow due to the daily rate/ employee vs independent contractor/ and overtime issues involved.


Claim Litigation Update- Hurricane Ike- Texas Windpool – TWIA spent 39 million defending and settling Hurricane Ike losses

February 10, 2011

Just a quick link to news on the TWIA total cost of defending Hurricane Ike losses in TX- 39 million plus the millions in plaintiff attorney awards on settled losses bringing the total legal fees to over 127 million!

http://www.texaswatchdog.org/2011/01/texas-windstorm-association-spent-almost-39-million-defending/1294443354.column

Just another ClaimSmentor moment quick topic!


Claim Litigation Update Re: Florida decision on Collateral Source Rule when dealing with a HO and Flood claims

January 17, 2011

Found this blog post over at Merlin’s Law Group blog  today- a must read for all adjusters handling flood claims and homeowner claim in Florida:

http://www.propertyinsurancecoveragelaw.com/2011/01/articles/insurance/more-on-the-collateral-source-rule/


Council on Litigation Management 2011 Training Classes- Free to Adjusters- CE credits apply

December 31, 2010

ClaimSmentor strongly supports the Council on Litigation Management for the claims industry. Their mission as stated on their website is foster cooperation and education in the claim industry.

They offer a vast array of FREE adjuster CE classes covering hot topics in the claims industry. If you are an adjusting firm or an insurance carrier, you can schedule classes through them and they provide the instructors and handle the CE.

Here is a link to all available courses based on adjuster skill level:

http://www.litmgmt.org/Training.aspx

To view their calendar of already scheduled classes you can attend in locations nationwide, here is the link:

http://www.litmgmt.org/Events.aspx

The Claims Litigation and Management organziation is hosting their annual conference in March 2011 in New Orleans, LA. For a complete list of the class schedules and conference details, here is the link:

http://www.litmgmt.org/annual-conference/GeneratedDefault.aspx

Please be sure to let Adam Potter and others you speak with when you schedule to attend these events or to host a class for your adjusters that you learned about it from ClaimSmentor!