Nothing is wrong with spreading risks to other companies, a practice known as reinsurance, when it is carried out with unrelated, solvent companies.
It can also be acceptable in small amounts between related companies. But A.I.G.’s companies have reinsured each other to such a large extent, experts say, that now billions of dollars worth of risks may have ended up at related companies that lack the means to cover them.
If my wife is my grandmother,
Then I am her grandchild.
And every time I think of it,
It simply drives me wild.
I saw this breaking story on the case of Kodrin v State Farm show up in our Times Picayune RRS feed and immediately recognized the case since we covered it extensively. (here, here, here, and here) It was also the case where I exposed Rossie as a Katrina legal charlatan as his penchant for letting State Farm ghost write his blog finally caught up with him.
All that aside I wish I could get empart some hope that the Kodrin’s appeal to the Supremes will amount to anything other than a quixotic effort, after all we are a policyholder blog. Simply put, while we all know State Farm acted in bad faith in how they adjusted the Kodrin’s wind claim simply knowing that fact is not enough; the evidence must be introduced into the trial record and it is largely missing in Kodrin. The first “here” I linked above is what I think history will judge as the definitive post on the topic of Kodrin and getting bad faith cases past the 5th Circuit and our newer readers will also find out what was missing from the Kodrin equation. Without further commentary on my part following is today’s Times Picayune story on the Kodrin appeal to the US Supreme Court:
A Port Sulphur couple who lost their home in Hurricane Katrina has asked the U.S. Supreme Court to reverse a lower court ruling rejecting their assertion that State Farm Fire & Casualty Co. acted in bad faith when handling their claim.
Judy and Michael Kodrin originally sued in U.S. District Court and won a $356,318 award, which included the full value of their homeowners policy plus additional penalties and attorneys fees.
But a three-judge panel of the U.S. 5th Circuit Court of Appeals threw out the penalties and attorneys fees, reducing the overall award to $117,084, out of which the Kodrins would have to pay their own legal fees if they recover no additional damages. Continue reading “The Kodrins Take the 5th to the Supremes”
The President is facing an uphill fight in his quest to change the face of healthcare delivery in the US. Each day, more and more Americans are concluding that the billions being spent to shore up the economy, do to the economic collapse, is about all the country can afford, at least for now. Louisiana Governor Bobby Jindal has an alternative approach that he says will cost nothing. But is he merely proposing “health reform lite?”
First, the President’s plan. He keeps talking about how Republicans are fighting to block health-care reform. But all he had to do was to sell his health agenda to the Democrats. After all, his party owns the White House, has a 70-seat majority in the House, and a filibuster-proof Senate. Not one Republican is needed. All the Democrats have to do is agree on something.
It was like old home week at the National Governors’ Conference in Biloxi, Mississippi this past weekend. The Louisiana Governor seemed to be the center of attention, with other state governors coming up to greet, give hugs and pay respects. When Mississippi Governor Haley Barbour welcomed the various state chief executives and their numerous staff members in attendance, he only acknowledged one governor in the crowd. Louisiana’s. But we were told Gov. Bobby Jindal wasn’t going to show? And he didn’t.
So how could he be in Biloxi? Well, stick with me here now. It’s a really good story you did not read or hear about any place else. Are you ready?
I drove over to Biloxi to hear Johnny Mathis perform at the Beau Rivage this past Friday night. Since I had read about the National Governors’ Conference being held there, I thought “what the heck.'” I’m with the press, so let’s get media credentials and stop by. I registered on line as a medial representative from Clear Channel Radio, picked up my badge when I arrived at the Beau Rivage, and headed for the opening Friday night reception for all in attendance.
I walked into the main conference room on the hotel’s second floor, and the place was packed. Open bar, great food, and a good band playing southern music. I recognized a number of faces from national news stories. Of course Gov. Barbour, as well as Gov. Brian Schweitzer from Montana, and Gov. Joe Manchin from West Virginia. I greeted Vermont Gov. Jim Douglas, who I knew from the 1980s when we both served as Secretary of State from our respective home states.
The purpose is to share information that is available in the public domain regarding these insurance cases so that policyholder advocates can exchange and share that information. We’ve already sent our some preliminary feelers via email and to make certain no one is left out I want to post an open invitation to all the policyholder advocates that read us.
You guys know who you are so please email me earning04 at gmail.com if you are interested and have not heard from us or want more information. Time and date to be determined, the location of the conference will be somewhere here on the Mississippi Gulf Coast.