General

Uninsured Motorist Rejection

July 2, 2015 | Mark S. Humphreys

Springtown lawyers handling insurance cases would want to know about a ruling in the Florida Supreme Court in May 2015. This ruling was written about in the Claims Journal. The curious thing to try to figure from this case is whether or not the Texas Supreme Court would rule the same way.

The article says the Florida Supreme Court recently considered whether the original policyholder’s signed rejection form, rejecting higher limits of UM coverage, applied to the original insured’s daughter who later became the sole named insured under the policy. In this case the Florida Supreme Court held that the original policyholder’s original rejection of higher UM limits on the policy that named him as an insured, and listed his daughter as a driver, was not binding on the daughter, individually, nor in her capacity as personal representative of her father’s estate. The facts indicated that the original insured, Richard Chase, insured his vehicle in 2001 with a policy through Horace Mann, providing liability limits of $100,000/$300,000. The vehicle insured under the policy was a 1992 Chevrolet Geo. Richard Chase who was the only named insured at that time, and the titled owner of the Geo, signed a form in which he selected reduced UM limits of $25,000/$50,000. Allison Chase, his daughter, was listed as a driver on the policy but was not a named insured on the policy and, therefore, had no right to select UM limits.

In 2004, Horace Mann removed Richard Chase as the sole named insured on the policy and made his daughter, Allison Chase, the sole named insured. Horace Mann also changed the insured vehicle to a 1997 Ford Escort that had been acquired by Allison three days earlier which was titled in her own name. Horace Mann then issued a new policy with Richard Chase as the sole named insured, insuring a 2004 Jeep that was owned by Richard. When the new policy was sold to Richard Chase he was presented with another written rejection form to sign. Allison Chase, who had never previously had the opportunity to select lower UM limits, was not provided the opportunity to reject the coverage or select lower limits when she was designated as the named insured on the policy issued in 2001.

Arson Suspected?

June 21, 2015 | Mark S. Humphreys

Springtown insurance lawyers who handle fire cases need to read this article. One reason an insurance company uses for denying a claim is the assertion that the insured caused the fire, in other words arson by the insured. The Arizona Republic published an article on May 14, 2015, that brings into question the credibility of some fire reports. The article is titled, Ties Between Phoenix Fire Department, Insurer At Issue In Lawsuit. Here is what it tells us.

A so-called “hand-in-hand” relationship between the Phoenix Fire Department’s arson squad and a private insurance company is expected to come under scrutiny in the retrial of a civil lawsuit against the insurer by a woman wrongfully accused of setting fire to her home.

When the Maricopa County Attorney’s Office dismissed the criminal case against Barbara Sloan because of a lack of evidence, Deputy County Attorney Edward Leiter noted an “incestuous relationship” between the Phoenix Fire Department and Farmers Insurance, the case disposition worksheet says. The Judge agreed, writing that the Fire Department and insurance company seemed to work “hand in hand,” minutes show.

Drone Insurance?

June 20, 2015 | Mark S. Humphreys

Texas insurance lawyers need to be on the look out for this – drone insurance. I’m kinda curious about it – are you? The Insurance Journal published an article about this issue on May 13, 2014. It is titled, Market For Drone Insurance Expected To Take Off In Nest 5 Years. Here is what it says.

The use of drones could become common practice for almost 40 percent of businesses in fewer than five years, according to corporate risk managers.

Those same risk managers say they will buy drone insurance even if it’s not mandated.

Insurance — Who Can Be Sued?

June 4, 2015 | Mark S. Humphreys

Everman insurance attorneys need to be aware of the people and entities that can be liable under the Texas Insurance Code. Section 541.151 provides that a person who has sustained damages caused by another’s engaging in unfair or deceptive insurance practices may sue the person engaging in those acts or practices. Section 541.002(2) defines “person” to mean “an individual, corporation, association, partnership, reciprocal or interinsurance exchange, Lloyd’s plan, fraternal benefit society, or any other legal entity engaged in the business of insurance, including an agent, broker, adjuster or life insurance counselor.”

In 1998, the Texas Supreme Court applied the plain language of the statute to hold that the term “person includes businesses and individuals “engaged in the business of insurance.” However, the statute would not apply to an insurance company employee that was not engaged in the “business of insurance.” The style of the opinion is, Liberty Mutual Insurance Company v. Garrison Contractors, Inc.

Engaging in unfair practices in “the business of insurance” is the key to liability. Those engaged in it may be liable. Those who are not may not be. Thus, when the Texas Supreme Court concluded that contracts of suretyship are not part of the business of insurance, the court also held that a surety could not be liable for unfair insurance practices. This was a 1995 opinion styled, Great American Insurance Company v. North Austin Municipal Utility District No. 1.

Grand Prairie Insurance Lawyer Proving Claim

April 19, 2015 | Mark S. Humphreys

Here is how at least one Grand Prairie insurance lawyer would prove a claim related to property damage. By looking at the 2011, Texas Supreme Court case, Reid Road MUD No. 2 v. Speedy Stop Food Stores, Ltd.

In this case the Court addressed whether an employee of the corporate general partner of a limited partnership qualifies to testify about the fair market value of partnership property under either the Property Owner Rule or Texas Rule of Evidence 701.

Speedy Stop is a Texas limited partnership that owns and operates convenience stores in Texas. Reid Road MUD sought to acquire a waterline easement across land owned by Speedy Stop. The District and Speedy Stop were unable to agree on compensation for the easement, so the District initiated condemnation proceedings pursuant to Texas Property Code, Section 21.012(a).

Insurance Lawyers Need To Stay On Top Of These Changes

April 14, 2015 | Mark S. Humphreys

Texas insurance lawyers need to be keeping abreast of the changes to insurance law being proposed in the 2015 Texas Legislature.

The Dallas News columnist, Dave Lieber, is doing a good job keeping up with the news laws being proposed. One article titled, Watchdog: Texas Insurance Lobbyists Have A Plan You Won’t Like is worth reading. It tells us this:

The Watchdog wants you to know that the insurance industry is trying to slide something slick through the Texas Legislature toward Gov. Greg Abbott’s signing pen that’s designed to pay you smaller insurance claims.

Insurance For Identity Theft

April 11, 2015 | Mark S. Humphreys

Palo Pinto County lawyers who handle insurance related claims may someday have to deal with a situation regarding identity theft and insurance. If so, this article may be of interest. It is from the Claims Journal and is titled, “Identity Theft Insurance: Is It Worth It?

The article tells us that anyone who isn’t in a high state of alert about safeguarding his or her identity is either in massive denial or is a fatalist. The data breach at Anthem put about 80 million consumers at risk of ID theft, states are seeing a spike in fraudsters using stolen identities to file for income tax refund checks and new hacks seem to be discovered every week. That’s made ID theft protection a booming industry, with new products being launched and existing ones tweaked to help with, and profit from, the anxiety.

H&R Block is the latest player to get into the business. In January, it launched “Tax Identity Shield,” which, for $29.95 a year, does an annual, pretax season scan for your name on websites suspected of selling personal information, sends an e- mail if your information is on another tax return filed through H&R Block, and gives basic help navigating red tape. TransUnion also unveiled a new product in January, a mobile app that, among other things, lets users paying $17.95 a month freeze and unfreeze their credit report with a swipe of their finger. Existing products are going strong: The largest niche player, Lifelock, saw 40 percent of all new members in 2014 join in the year’s final quarter.

Texas Homeowners Policy’s And Costs

April 9, 2015 | Mark S. Humphreys

Dallas insurance lawyers need to keep up with general information in the insurance world. Claims Journal published an article recently worth reading. It is titled, State Farm to Pay $352.5M to Settle Texas Residential Overcharge Case. It says:

A settlement has been reached in a long-running dispute between the nation’s largest homeowners’ insurer and the state of Texas over premium overcharges.

The Texas Office of Public Insurance Counsel (OPIC) announced Feb. 27 that a settlement had been reached requiring State Farm subsidiary, State Farm Lloyds, to refund $352.5 million in premium overcharges and interest to its Texas policyholders.

Proposed New Insurance Laws

April 4, 2015 | Mark S. Humphreys

Here is information for Texas insurance lawyers. The following are a few new laws being proposed by the Texas Legislature concerning insurance. These proposed laws change existing statutes.

HB 3646 – Insurance Claims and Cerlaln Prohibited Acts and Practices Relating to the Business of Insurance Summary: HB 3646, would amend various sections of the Insurance Code to do, among other things, the following:

The definition of “person” would no longer include an adjuster or any third-party individual or entity “engaged by an insurer to provide adjusting, estimating, consulting, engineering, or other services related to the insurer’s adjustment of a claim.

Reading An Insurance Policy

February 8, 2015 | Mark S. Humphreys

Insurance lawyers in Dallas will tell you to “read the policy.” Now the reality is that very few people ever read their insurance policy. Most people rely on their insurance agent to sell them a policy they want. This expectation often makes the agent responsible for selling a person a policy that does not provide the coverage that is expected.

An insurance publication called the Insurance Journal contains lots of good information from the insurance world. Most people involved in the insurance business have ready access to this publication, including insurance company managers, agents, adjustors, and attorneys who do insurance work.

A January 5, article is worth reading. It is authored by Christopher J. Boggs and is titled “How To Read Any Insurance Policy: 12 Rules.” Here is what the article tells us.