“Insurance breakage” mirrors the concept of breakage in the retail sector. In retail, breakage refers to the revenue gained from unredeemed gift cards or prepaid services. Essentially, customers pay upfront for a service or product they never use, and the retailer benefits financially from this non-redemption.

Continue Reading Insurance Breakage—Insurance Companies Profit When Policyholders Give Up

Nobody can remember all the stuff they have accumulated and discarded during their lifetime. When a total fire loss happens, and there is nothing left other than charred remains and memories, many insurance companies add to the emotional trauma by not paying one penny towards the personal property loss until claims forms asking for a myriad of information about the lost personal property are provided.     

Continue Reading Do policyholders Have to Fill Out Personal Property Inventory Forms Following a Total Loss?

Insurance company attorneys can be tricky because they try to “set up” defenses in the investigation of a claim and then claim non-cooperation or fraud if the requests are not fully responded to. It is almost as if the insurance defense bar is playing a “gotcha” game. On the other hand, not cooperating on an obvious and material issue will spell doom for the policyholder. This was the case in a matter decided last week.1

Continue Reading The Duty to Cooperate—What Happens If You Do Not Fully Respond and the Insurance Company Says Nothing About It?

I recently shared a post titled “Public Adjusters Need To Raise The Bar For Admission If They Want To Be Seen As Professionals,” which sparked a lively and insightful discussion. I’m truly grateful for all the engaging responses and ideas that have been shared.

Continue Reading Raising the Bar in Public Adjusting Licensing: A Friendly Conversation

Brian Goodman is the General Counsel for the National Association of Public Insurance Adjusters (NAPIA.) At the First Party Claims Conference, he and Steve Badger debated on a number of topics. One topic concerned the professionalism of public adjusters and the ease of obtaining a public adjusting license. Goodman and Badger agreed that public adjusters should call for increasing the standards for entry to become a public adjuster. I wholeheartedly agree.

Continue Reading Public Adjusters Need To Raise The Bar For Admission If They Want To Be Seen As Professionals

Seek Now (fka Ladder Now) is a third-party vendor to insurance companies. It has non-licensed inspectors do work that historically was accomplished by company or independent adjusters. Here is a memo from a Seek Now manager to his field inspection team:

Continue Reading The Outcome Oriented Claims Culture Is Pervasive and Killing Any Good Will Towards the Insurance Industry

Are you a policyholder, insurance restoration contractor, or public adjuster dealing with a roofing claim adjustment involving roofing shingles with State Farm? Have you asked the State Farm adjuster for the process explaining how the adjuster is handling the claim? Why wouldn’t State Farm provide and publish the honest methods it uses to adjust these claims with its customers if you asked for them? 

Continue Reading Are Your Roof Claims Being Properly Handled by State Farm in Good Faith? The State Farm Shingle Locator Service (aka RLS)

In the post, “How Do Judges Appoint Umpires in an Appraisal? A Case Example from Louisiana,” who did the judge appoint? I noted that:

In this case, the judge appointed an umpire who had been appointed before as an umpire and as a special master on a number of other cases. My assumption is that the judge believed that Cade was considered fair based on those qualifications.

Continue Reading Do Judges Have a Bias to Appoint Judges and Previous Umpires When Considering the Appointment of an Umpire?

Appraisers and umpires must ensure they have the necessary time to efficiently fulfill their responsibilities before committing to an appraisal panel. Both policyholders and insurers concur that policyholders deserve swift and complete compensation for their losses. The fundamental principle of insurance is compromised if policyholders do not receive timely and full payments. Therefore, it is imperative for appraisers and umpires to be prepared to quickly assess the extent of losses and make timely determinations on awards. 

Continue Reading What Happens If One Appraiser Does Not Participate? Can One Appraiser and Umpire Make An Appraisal Award?

The greater the appraisal award is, the greater frequency that the insurance company will flip out and blame somebody or something for causing a large appraisal award. This is the situation in a North Carolina case where the insurance company has sued the umpire.  

Continue Reading Does an Umpire Have Immunity From Suit? Is an Appraisal an Arbitration in North Carolina?