Chip Merlin’s Gulf Coast case law update provides context for SLABBED update on recent developments in selected Katrina cases UPDATED

Merlin lived up to his name when, like the magician, he pulled this list of case law out of his hat, so to speak, and posted it on his blog last week – providing the context  for an update on several cases we’ve followed on SLABBED.  Case law was the focus of Merlin’s presentation at a recent Windpool Conference session for adjusters and the listed cases are those expected to “affect those adjusting claims in Gulf Coast areas outside of Florida”:

A second listing of related “practical points” followed and included, among others, two of particular interest: Continue reading “Chip Merlin’s Gulf Coast case law update provides context for SLABBED update on recent developments in selected Katrina cases UPDATED”

TWIA’S 11.2% allocation to wind damage – 100% hot air

TWIA (Texas Windstorm Insurance Association) appears to be convinced ignorance can be a defense; but, what they’ve done to policyholders slabbed by Hurricane Ike is indefensible. Chip Merlin reported on the 11.2% hoax in a recent post, Slabbers Finally Learn How They All Have Exactly 11.2% Damage:

The Bolivar Peninsula TWIA policyholders have had the most frustrating insurance claim experience of any group in recent memory. While we have been having success with other Hurricane Ike claims, the Slabbers claims resolutions have proven difficult. They have not just back and taken this abuse either as I noted in Texas Windstorm “Slabbers” and Policyholders March on Austin.

One even made a joke about how, according to TWIA, they each have exactly 11.2% of building value damage, reflected in The Parable of Hurricane Ike Insurance Claims

…from what we have reviewed regarding the accuracy and low-balling of the TWIA estimates of partial damage, the entire population will have to be revised

As a result of Javier Delagado following up on evidence produced in an administrative trial, Slabbers finally have the answer of how TWIA performed the calculations that everybody has exactly the same damage. The person making the calculation for TWIA was University of Texas Professor William Spelman. The TWIA attorneys introduced his testimony via a previous administrative hearing to avoid expense—so much for the ability to confront and cross examine a witness. The TWIA pleading was very telling:
Continue reading “TWIA’S 11.2% allocation to wind damage – 100% hot air”

No more Mr. Nice Guy – Merlin takes on Safeco and Liberty Mutual

Chip Merlin, fired up and ready to go after Safeco and Liberty Mutual, issued a call to arms on his blog today in Safeco and Liberty Mutual Claims Practices Questioned on a National Basis: Policyholders Organize Against Wrongful Claims Practices.

Having seen what wrongful claims practices can do to family and communities in our State’s coastal counties, SLABBED  grabbed a keyboard and stands ready to type.

Suppose you knew that your insurance company had started a new claims practice program called “Quantum Leap” to increase corporate practices by making certain no claim was overpaid—would you buy that insurance? Would you feel peace of mine if you knew that secret program was in place and had such a claims philosophy? Continue reading “No more Mr. Nice Guy – Merlin takes on Safeco and Liberty Mutual”

Merlin – Replacement Cost Implications by Replacing at Another Location

Chip Merlin answers a question that has been on my mind of late in his post Replacement Cost Implications by Replacing at Another Location:

Replacement at the same location or repairing the same premises has been a frequent question posed by a number of clients. In many situations, clients of older structures in areas where it is not economically feasible to rebuild wish to replace in another location. They want to know if they can replace or repair with another structure at another location and whether they can obtain the holdback of the replacement cost benefits since the insurer generally pays only the actual cash value until the replacement is incurred. Fortunately, the FC&S Bulletins has the right answer to those questions and a Florida case provides a good example of the general law to this topic.

A New York subscriber to the FC&S Bulletins asked: Continue reading “Merlin – Replacement Cost Implications by Replacing at Another Location”

Chip Merlin asks Why is the property insurance industry against its own customers?

Many of my retail corporate clients and their general counsel have told me that if they advertised and then performed in the manner of their insurer, the federal and state trade commissions would be holding “bait and switch” hearings. But, this is exactly the type of treatment insurance executives are calling for when they support the propaganda against their own customers through spokespersons such as Hartwig.

I am not the only one to have noticed this…The editors of Slabbed were pretty blunt about what they think about Hartwig.

Chip linked two recent SLABBED posts –  Bam Bam’s The Push Back on Corban – “You’re gonna pay for this” and Sop’s Da Corban spin continues: AIA prefers denial while the National Underwriter carries III press release calling it news – and added his thoughts as he raised the question Why Is the Property Insurance Industry Against Its Own Customers?

The response by Robert Hartwig of the Insurance Information Institute to the landmark Corban decision typifies how executives at many insurance companies feel about their customers. If not, Hartwick would be out of a job. Here is his quote taken from Anita Lee’s article: Continue reading “Chip Merlin asks Why is the property insurance industry against its own customers?”