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The article discusses a new rule in Florida that prohibits insurance companies from altering adjusters' reports without explanation, following complaints from adjusters hired after Hurricane Ian. The rule aims to prevent deceptive practices and ensure transparency in damage estimates for policyholders. While some adjusters see this as a positive step, there are concerns about limitations on accurate price estimates due to software requirements. Claims from Hurricane Milton continue to rise, with over 221,582 claims and an estimated insured loss total of more than $2.7 billion reported as of October 21. [Extracted from the article]

A federal appeals court has ruled that an air transport company is not liable for a seized hemp shipment due to international treaties that preempt state-based legal actions. The case highlights the challenges faced by cannabis and hemp businesses, including lack of controls, regulations, and consistency. It is likely that insurance policies for such businesses would have exclusions for federally illegal or high-THC products. Additionally, coverage for international hemp shipments is difficult to obtain. The case involved a producer and distributor of legal hemp products, We CBD, whose shipment was seized and destroyed by federal authorities due to high THC levels. The court ruled in favor of the air transport company, Planet Nine, citing the Montreal Convention of 1999. The case underscores the complexities of navigating federal, state, and international laws in the cannabis and hemp industry. [Extracted from the article]

According to an article in Insurance Journal, the workers' compensation line in the US continues to show strong profits and lower claim frequency. Net written premium for workers' comp private carriers increased from $42.5 billion in 2022 to $43 billion in 2023. The workers' compensation line remains the most profitable segment, with a combined ratio well under 100. Additionally, the article mentions that commercial property/casualty premiums increased by an average of 7.7% in the first quarter of 2024, with commercial auto premiums experiencing the highest increase. [Extracted from the article]

The article from Claims Journal discusses a recent federal appeals court decision that insurance carriers are not liable if a bank improperly cashes a check made out to two insureds and gives the proceeds to only one of them. In this specific case, Markel American Insurance Co. issued joint checks to two insured truck-leasing firms, but the bank cashed the check and only one of the insureds received the payment. The court ruled that the insurance company fulfilled its obligation by issuing the joint checks, and the responsibility lies with the bank, not the insurer. This decision provides clarity for insurers in Florida, indicating that they are not likely to face similar lawsuits in the future. [Extracted from the article]

The article discusses the positive work environment at Brightway Insurance in Ponte Vedra Beach, Florida, where employees are encouraged to make a positive impact and are rewarded for their performance. The agency has been recognized as the 2024 Best Agencies to Work For Bronze award winner for the Southeast region. Brightway focuses on professional development, offers growth opportunities, and emphasizes employee satisfaction, which has contributed to its success in the challenging Florida property insurance market. [Extracted from the article]

Universal Insurance Holdings and American Coastal Insurance Corp. both reported losses in the third quarter of 2024 due to Hurricanes Helene and Milton in Florida. Universal incurred a $16.2 million net loss, while American Coastal expects about $3.8 million in catastrophe losses from the hurricanes. Despite the impact of the storms, both companies remain financially resilient and are optimistic about future performance. Universal added policies in Q3, while American Coastal anticipates remaining profitable in the fourth quarter. [Extracted from the article]

A federal appeals court ruling emphasized the stringent requirements for expert witnesses to establish a causal relationship between exposure and illness, impacting insurance claims and toxic tort litigation. The case involved workers who claimed sinus problems from the Deepwater Horizon oil rig explosion, with the court upholding a lower court's decision to exclude expert testimony. The court found that the experts failed to identify hazardous exposure levels or statistically significant associations, leading to a judgment in favor of BP. The case is part of a larger group of suits related to the oil spill cleanup, with thousands of workers seeking compensation through various legal avenues. [Extracted from the article]

The article discusses a legal challenge against People's Trust Insurance Co.'s managed repair program in Florida, which has faced multiple court decisions in recent years. The 3rd District Court of Appeals reversed a jury verdict in favor of a homeowner, citing the failure to provide a work authorization for repairs after a hurricane. The court's decision reflects recent legislative changes in Florida's insurance industry, impacting the relationship between insurers and policyholders. [Extracted from the article]

Energy Insurance Agency, based in Kentucky and Ohio, was recognized as one of Insurance Journal's Best Agencies to Work For in the Southeast. The agency, with a people-first culture, values employee satisfaction and professional development. Despite challenges like carrier changes and natural disasters, Energy focuses on building strong relationships with carriers, diversifying products, and investing in technology to meet future demands. [Extracted from the article]

Hurricane Milton has resulted in over 152,180 property insurance claims and an estimated $1.9 billion in insured losses in Florida. The significant losses are expected to lead to higher reinsurance prices and property insurance rate hikes, impacting both insurers and policyholders. Despite the challenges, the Florida insurance industry is better equipped to handle these losses compared to previous years, with legislative changes helping to mitigate excess claims litigation. [Extracted from the article]

Florida is facing significant delays in claims adjusting due to back-to-back storms, Hurricane Helene and Hurricane Milton. The volume of claims is expected to be a problem, with some adjusters avoiding the state due to allegations of insurers revising estimates. Many adjusting firms are still working in areas affected by Helene, making it difficult to shift resources to Milton. The majority of claims are expected to be filed with Citizens Property Insurance Corp., exacerbating the shortage of claims professionals for other carriers. There are concerns that flood and storm surge damage from Helene may be mistakenly included in wind claims from Milton. [Extracted from the article]

A recent decision by the Florida appeals court has stated that being unlicensed as a contractor in Florida does not automatically void a storm-remediation contract. This ruling could have implications for insurance defense strategies in hurricane claims. The case involved a mold remediation contractor, Incident365 Florida, and Ocean Pointe Condominium Associations. The lower court had ruled in favor of the condo associations, stating that Incident365 was not a licensed contractor, but the appeals court disagreed, stating that Florida law does not require mold removal firms to be licensed as building contractors. The case has been remanded for further proceedings. [Extracted from the article]

Prestige Trucking Insurance in Tamarac, Florida prioritizes employee well-being by offering flexible work arrangements and providing amenities that benefit mental and physical health. The agency has been recognized as the 2024 Gold winner for Best Agency to Work For in the Southeast by Insurance Journal. Employees appreciate the work environment, transparent communication, and opportunities for career advancement. The agency focuses on providing exceptional customer service and is prepared to face challenges such as rising insurance costs and regulatory changes. [Extracted from the article]

The National Council on Compensation Insurance (NCCI) has introduced a new Workers' Compensation Weighted Medical Price Index to provide a more accurate measure of medical costs in workers' compensation. Unlike other indexes, this new index focuses specifically on workers' comp medical treatments, which primarily consist of short-term treatment for minor conditions and doctor visits. The index combines data from various sources, including the Personal Health Care Index, and is compiled monthly but published quarterly. While it does not provide state-specific inflation data, carriers can use the index to build their own databases with monthly updates. [Extracted from the article]

Insurance fraud investigator Lin Werkheiser warns about the growing trend of fake or exaggerated water-damage claims, particularly those involving clogged toilets. Werkheiser explains that a clogged toilet should only result in a few quarts of water overflowing, but scammers are claiming that these incidents have caused extensive damage to gain hefty insurance payouts. He also notes that many of these claims are linked to home flippers and real estate investors who hope to trick property insurers into paying for renovations before selling the property. Werkheiser provides several red flags for insurers to look out for, such as connections between claimants, buyers, public adjusters, and contractors, as well as suspicious invoices and refusal to provide original photographs. [Extracted from the article]

The Georgia Court of Appeals has ruled that ride-sharing service Lyft is considered a motor carrier under a 2015 statute, allowing motorists injured by Lyft drivers to sue the driver's insurance company, State Farm. This decision comes after Georgia lawmakers recently ended direct-action lawsuits against trucking companies' insurers. State Farm argued that Lyft should be exempt from the motor carrier definition, but the appeals court disagreed, stating that the different sections of the statutes must be considered as a whole. The court ruling may have implications for other pending accident suits involving ride-sharing services. [Extracted from the article]

The article discusses the challenges faced by small business owners in the alcohol-related sector when it comes to securing liquor liability insurance. While coverage is easy to obtain in some states, premiums have increased significantly and carriers have withdrawn from others. South Carolina, in particular, has experienced a difficult market, with insurers losing money on liquor liability policies. Lawmakers in the state are considering a bill that would create an insurer of last resort approach to liquor liability insurance. Other states, such as Vermont, Texas, and the District of Columbia, also face challenges in finding coverage. Overall, the availability and pricing of liquor liability insurance vary greatly depending on the state and its laws. [Extracted from the article]

The article presents the discussion on recounting a computer hacking incident a longtime client suffering recently. Topics include intrusion being limited to the one worker and the business immediately instituted multi-factor authentication for everyone associated with the firm; and landlords and property managers offering favorable lease terms to lure more firms .

Hurricane Debby has resulted in nearly 12,000 claims being filed in Florida within five days of the storm, which is almost half the number of claims filed during Hurricane Idalia over a three-month period. Despite Idalia being a stronger storm, the value of Debby claims is significantly less than Idalia's. The reason for the surge in claims from Debby is unclear, but it could be due to property owners learning from Idalia to file claims quickly or secondary damage from homes affected by both storms. Additionally, there are positive signs of Florida's property insurance market improving, including slower rate increases, decreased reinsurance costs, and a decrease in the number of policies held by the state-backed Citizens Property Insurance Corp. However, some homeowners have reported higher premiums from private insurers compared to Citizens. Reducing the size of Citizens' book of business is important to avoid potential surcharges on policyholders in the event of catastrophic losses. [Extracted from the article]

A wrongful death lawsuit has been filed against People's Trust Insurance Co. and its contracted repair team, alleging that their failure to repair a Florida home after Hurricane Ian in 2022 led to the death of a 58-year-old policyholder. The lawsuit claims that the woman was forced to live with hazardous black mold for seven months, which exacerbated her auto-immune disease and respiratory condition, ultimately causing her death in July 2023. People's Trust has not yet responded to the lawsuit. The insurer has gained attention for its policy endorsements that allow preferred contractors to handle restoration work after a claim, which has both benefits and drawbacks. The lawsuit was filed by the woman's child, who has suffered mental stress and anxiety as a result of her death. [Extracted from the article]

Four insurance companies have settled with a New York hotel in a case where a woman was secretly videotaped in the shower. The terms of the settlement were not disclosed. The woman, known as Jane Doe, filed a $100 million lawsuit in 2019 after an employee of the hotel filmed her and attempted to extort money from her. The insurance companies had argued that they had no duty to defend or indemnify the hotel, but a federal judge ruled that coverage did apply. The insurers appealed the decision, but a panel of judges upheld it. [Extracted from the article]

The South Carolina Supreme Court has called for a legislative fix to a workers' compensation employment test that has been in use for over 50 years. The court expressed concern about the validity of the test, known as the Cooper test, which allows employers to deny workers' comp benefits if an employee misrepresented health information on their job application. However, this conflicts with the Americans with Disabilities Act, which prohibits companies from asking about health issues before hiring. The court suggested that the General Assembly address this issue legislatively. The court's decision in the case of Brailey vs. Michelin and Safety National Corp upheld a state appeals court ruling that overturned the South Carolina Workers' Compensation Commission's denial of Brailey's claim for compensation. [Extracted from the article]

Across America Insurance Services, a managing general agent that provides coverage for commercial transportation and trucking, takes an unorthodox approach to claims disputes. Instead of immediately involving lawyers, the company relies on a team of in-house adjusters who perform thorough investigations on claims and claimants. This approach has led to significant cost savings, with the average claim payout dropping from $29,000 to $5,700 and attorney fees decreasing from $5,400 to $349. The company emphasizes closing bodily injury claims quickly and believes its anti-litigation approach is scalable and applicable to insurers of all sizes. [Extracted from the article]

Farmers Insurance has received an anonymous letter from a group of in-house adjusters accusing the company of understaffing and overworking claims professionals. The adjusters claim that the current work environment contradicts the company's core values of customer focus, professionalism, and integrity. The letter has been sent to Farmers and insurance regulators in Tennessee, Alabama, and Georgia. Farmers Insurance has acknowledged the concerns expressed in the letter and has engaged with its local team members to address the issues. The adjusters are demanding that Farmers hire more staff, implement retention programs, assess adjuster workloads, comply with occupational safety guidelines, and provide more time for continuing education courses. [Extracted from the article]

The Texas Supreme Court has ruled that contractors cannot advertise themselves as insurance claims negotiators or act as public adjusters without holding an adjuster's license. The court overturned a previous ruling and found that a 2003 state law does not violate a roofer's constitutional rights. The ruling has been hailed by the Texas Department of Insurance (TDI) and is expected to support other states with similar restrictions on public adjusters. The case has been closely watched by property insurance organizations, and the ruling is seen as a victory for TDI's position. [Extracted from the article]

The article offers information on the infrastructure crisis, business loss, business interruption, insurance policies and utility coverage. It further discusses about the lack of government investment in infrastructure maintenance; views of Bryan Tilden, a former broker, a lecturer and an expert witness on insurance coverage issues; and also mentions about the expanded use of parametric insurance.

The article discusses the lawsuits by Lexington Insurance as well as State National Insurance and a California youth baseball league which raise questions about captive insurance plan. Topics include a cross-claim filed by a Texas insurance agency in the Lexington suit, arguing it was not part of the scheme but was a victim, comments from insurance industry consultant Chris Burand on the cases and the types of problems they allege, and number of captive companies in the U.S. in 2021.

The Florida Supreme Court has ruled that a surviving spouse can seek damages in an asbestos claim, even if they married the sickened worker after their diagnosis and just before their death. This decision overturns a previous ruling by the Florida 4th District Court of Appeals and aligns with the opinion of the 5th District, potentially opening the door for more claims by companions of mesothelioma and cancer victims. The court rejected arguments from defense lawyers and insurance companies, stating that Florida's Wrongful Death Act allows surviving spouses to seek damages. The case will now be remanded to the lower courts for further proceedings. [Extracted from the article]

The Florida Office of Insurance Regulation has fined Heritage Property & Casualty Insurance Co. $1 million for mishandling claims after Hurricane Ian. The fine, one of the largest in state insurance regulation history, reflects the seriousness with which Insurance Commissioner Mike Yaworsky is approaching consumer complaints about unpaid claims and rising premiums. The violations included the use of unlicensed adjusters and failure to provide necessary information to policyholders. Heritage has agreed to pay the fine and administrative costs and has taken steps to address the issues, such as creating a compliance director position and implementing new claims management software. In addition to Heritage, four smaller property-casualty insurers have also been fined for non-willful violations. [Extracted from the article]

In 2019, a Legionnaires' disease outbreak occurred at the North Carolina Mountain State Fair, resulting in 96 hospitalizations and four deaths. Lawsuits were filed against a spa company whose hot tub display was found to be the likely source of the Legionella bacteria. The hot tub company's insurer, North Carolina Farm Bureau Mutual Insurance Co., argued that a bacteria and fungus exclusion in the policy applied, but the state Court of Appeal ruled that the exclusion was ambiguous and that the insurer had a duty to defend. The court also found that an exception to the exclusion applied because the water in the hot tubs was considered a product intended for bodily consumption. The decision affirms the lower court's ruling and allows the lawsuits against the spa company to proceed with the insurer's aid in the legal defense. Legionnaires' disease has been on the rise since it was first identified in 1976, resulting in numerous outbreaks and lawsuits. [Extracted from the article]

Two lawsuits in south Florida allege that major property insurers hired inexperienced or unlicensed claims adjusters after storms, resulting in low damage estimates that fall below deductibles. In one case, almost 4,800 claims for Heritage Property & Casualty Insurance Co. were handled by unlicensed adjusters after Hurricane Irma, potentially violating state laws. Another lawsuit alleges that American Home Assurance, part of AIG, also employed inexperienced and unqualified claims investigators. Independent adjusters have supported these allegations, stating that carriers often use first-time or young adjusters who may keep estimates low or be unfamiliar with the extent of damage. The Florida Association of Public Insurance Adjusters has expressed concern about the use of unvetted claims investigators, emphasizing the importance of licensed professionals during vulnerable times for policyholders. While some Southeast states allow out-of-state adjusters on a temporary basis after a storm, Florida regulations require out-of-state adjusters to apply to the state Department of Financial Services. Florida statutes prohibit unlicensed claims adjusting, and recent legislation has strengthened requirements for adjusters and emphasized the need for licensed and appointed adjusters to examine properties. [Extracted from the article]

A recent ruling by the 11th U.S. Circuit Court of Appeals has clarified that property insurance policyholders do not need to provide a competing damage estimate when filing a supplemental claim, as long as the policy does not require it. The decision was made in the case of Great Lakes Insurance vs. Concourse Plaza A Condominium Association, where the association waited almost three years to provide a damage estimate and supplemental claim after Hurricane Irma. However, the Florida Supreme Court may soon review the case, potentially impacting the ruling. This ruling provides insured individuals with flexibility in filing claims but may complicate claims handling for insurers. [Extracted from the article]

A recent study conducted by researchers from Harvard and Columbia universities, along with the Federal Reserve, has reignited the debate surrounding the financial ratings of Florida property insurance companies. The study suggests that the ratings provided by Demotech, the firm that rates the majority of Florida-based carriers, are not as rigorous as previously believed. The study also highlights inconsistencies in the eligibility requirements of rating agencies, which could potentially encourage ratings shopping among poor quality insurers. While some in the insurance industry have criticized Demotech's rating system, others argue that the Florida insurance market heavily relies on Demotech's ratings. The study recommends that insurers should be rated by at least two rating firms. [Extracted from the article]

The South Carolina Supreme Court has ruled that an employer cannot use statistical probabilities to deny a workers' compensation claim. The court stated that individual cases must be decided based on the facts and applicable law, not statistical probabilities. The case involved a worker who experienced back and leg pain due to the repetitive nature of his job. The court criticized the appellate panel's reliance on an ergonomics report commissioned by the employer, stating that the report was inadmissible in court. The case will now go back to the appellate panel to calculate the benefits due to the worker. [Extracted from the article]

The Tennessee Supreme Court has ruled that employers can no longer use vicarious liability to block negligence claims. This decision came in a slip-and-fall case against Trader Joe's and has implications for multiple industries. The court found that the preemption rule, which allows employers to bar direct negligence claims, is incompatible with Tennessee's system of comparative fault. This ruling will prevent businesses from hiding behind vicarious liability and limit discovery of a company's safety and training practices. The case will now proceed to trial in the Davidson County Circuit Court. [Extracted from the article]

Georgia lawmakers have passed two bills that could impact windstorm and bad-faith claim losses for property insurers. The first bill aims to reform bad-faith claims by clarifying the wording and specifying material terms for settlement offers. It also prevents plaintiffs from claiming an insurer failed to settle if the carrier agrees to the material terms and pays the policy limits or the amount of the demand. The second bill requires insurance carriers to provide premium discounts to homeowners and commercial properties that fortify against wind damage. It does not provide funding for retrofitting structures. [Extracted from the article]

The North Carolina Supreme Court has ruled that underinsured motorist policies can no longer be stacked to increase coverage in an accident. This decision overturns 30 years of appeals court rulings and aligns with the state's UIM law, which states that only UIM limits for the vehicle involved in the accident can be considered. The case involved a passenger in his own car who sought UIM recovery. The ruling has significant implications for UIM coverage in the state. [Extracted from the article]

A Florida jury has found that National Indemnity Company of the South (NICO), the insurer for a waste-hauling company involved in a crash that killed four Spanish women, did not act in bad faith. The jury verdict means that the families of the women may only receive part of the $12 million judgment. This decision is seen as a victory for NICO and other insurers that have faced bad-faith claims in recent years. The jury did not provide specific reasons for their verdict, but the judge's instructions stated that an insurer acts in bad faith when it fails to settle a claim against its insureds fairly and honestly. [Extracted from the article]

The North Carolina Supreme Court has temporarily halted an appeals court decision that challenged the classification of moonlighting law enforcement officers as independent contractors. The case involved an officer who was injured while working traffic control for a private company, and the appeals court ruled that both the sheriff's department and the company were responsible for the officer's injuries. However, the bridge-building company and its workers' compensation insurer petitioned the high court to prevent them from having to cover the officer's medical and indemnity benefits. The American Property Casualty Insurance Association also argued that the appeals court had made an error and deviated from accepted precedent. The question of who is liable for workers' compensation benefits has been a contentious issue in multiple states, particularly when law enforcement officers work temporary jobs for private firms. The high court's decision on this case is still pending. [Extracted from the article]

The article discusses the controversy surrounding the Houston-based law firm McClenny Moseley & Associates (MMA) and its connection to ARS Global, a restoration and emergency management company. The Orlando Sentinel reported that ARS has received millions of dollars from the state of Florida after donating to Governor Ron DeSantis' reelection campaign. The article suggests that this may be a "pay to play" scheme. ARS has denied the allegations and stated that it has contracted with Florida officials to provide services. The case raises concerns about the impact of litigation financing and the potential for inflated damage claims. Additionally, the repeal of assignments of insurance benefits (AOBs) in Florida has led to an increase in liens against property owners by contractors seeking payment for restoration work. Some predict that this may result in foreclosures and have implications for insurance carriers. [Extracted from the article]

One Sotheby's International Realty, a major player in the high-end real estate market in south Florida, is facing claims that it hired an agent who pressured Miami Beach condominium owners into selling below market price and pocketed nearly $4 million from the sale. Despite exclusions in Sotheby's errors and omissions liability policy, a federal appeals court has ruled that General Star National Insurance Co. must defend the realty firm in a civil lawsuit brought by the condo owners. The case involves a condo owned by a Swiss real estate holding company headed by two Russian nationals and has international implications. [Extracted from the article]

Alfa Insurance, one of the largest property/casualty insurers in Alabama, was found not to have discriminated against an employee with multiple sclerosis (MS) and did not violate the Americans with Disabilities Act (ADA), according to a federal appeals court. The court emphasized the distinction between the ADA and Title VII of the Civil Rights Act, stating that the ADA requires plaintiffs to show that a disability was the chief cause of termination, not just a motivating factor. The plaintiff, Jennifer Akridge, claimed that she was fired so that Alfa could avoid paying her medical treatment costs, but the court ruled in favor of the insurance company. [Extracted from the article]

The Florida Supreme Court has ruled that property insurers can be compelled to undergo the appraisal process before settling claims disputes. This decision resolves a conflict between different appeals court decisions and could be seen as a setback for insurance carriers that have used previous rulings to refuse appraisals. The case in question involved a condominium association that demanded an appraisal after a hurricane, but the insurer argued that it was premature. The Supreme Court found that the insurer's policy language allowed for early appraisals because the insurer retained the right to deny the claim. [Extracted from the article]

The Alabama Supreme Court has ruled that health care providers, including hospitals, are immune from legal actions brought by patients who were injured in slips and falls at the hospital during the COVID-19 pandemic. This immunity is granted under Alabama's COVID-19 Immunity Act, which protects health care providers from liability unless there is wanton, reckless, willful, or intentional misconduct. The court's decision was based on the plain language of the immunity statute, which appears to cover all claims related to the coronavirus, even those not directly related to medical treatments. The ruling overturns a lower court's decision and allows the hospital to assert its immunity defense. [Extracted from the article]

The Florida Senate Judiciary Committee has approved two bills that aim to address issues related to litigation funding and wrongful death claims. Senate Bill 1276 would require full disclosure of who is funding lawsuits and prohibit lenders from directing or influencing litigation. This bill aims to bring transparency to the practice of third-party litigation financing, which has become a concern for insurers and corporations. Another bill, SB 248, would expand the category of plaintiffs who can file medical malpractice wrongful death claims. However, it also includes caps on non-economic damage awards to mitigate potential increases in malpractice premiums. These bills come after a previous tort-reform measure was passed in Florida. [Extracted from the article]

Progressive Casualty Insurance and Builders Mutual Insurance Co. are facing class-action lawsuits over data breaches that occurred in 2022. The breaches may have exposed the personal data of over 411,000 individuals. The lawsuits allege that both companies failed to properly secure and safeguard the personal information of their customers. While insurers have faced cyber attacks in recent years, class actions against carriers for breaches in their own computer systems are relatively rare. Cyber attacks and related litigation are expected to continue to be a serious threat to insurers in the future. [Extracted from the article]