On July 3, 2024, the Michigan Department of Insurance and Financial Services (DIFS) issued a bulletin, which expressly prohibits insurance companies from depreciating labor when calculating actual cash value (ACV), unless the insured as agreed to the depreciation of labor in exchange for a lower premium. According to DIFS: ACV is ordinarily understood to mean …
On June 7, 2024, the Texas Supreme Court issued an opinion upholding the State’s Public Adjuster Licensing Statute against a constitutional challenge by a roofing contractor. The Court held that the statute’s licensing requirement, as well as the dual capacity prohibition, preventing a company from serving as both a contractor and a public adjuster in …
The 2024 Atlantic hurricane season started June 1 and runs through November 30. The National Oceanic and Atmospheric Administration (NOAA) is predicting a “well-above-average” season. An “average” hurricane season consists of 14 named storms, 7 hurricanes, and 3 major hurricanes. For 2024, NOAA is expecting 17 to 25 named storms, 8 to 13 of which …
On May 14, 2024, the Eastern District of Pennsylvania held that the Vacancy provision in a commercial property policy applied, barring coverage for a policyholder’s claim of over $13 million in theft/vandalism damages, while simultaneously denying allegations of bad faith. In 4301 N Delaware QOB LLC v. Selective Insurance Company of South Carolina, the plaintiff policyholder sued Selective for breach of contract and …
Property in 60 Seconds: Clear Vacancy Language Earns Insurer Summary Judgment Read More »
HKR associate, Patrick Clawson has been admitted to practice law in the State of Ohio. Way to go, Patrick! We look forward to great things!
A recently enacted New Jersey law may impact New Jersey property insurers. The new law went into effect on March 20, 2024, requiring landlords and sellers of real estate to disclose flood risk information to prospective buyers and tenants. Under the law, both sellers of real property and landlords must disclose whether the property is …
New Jersey Enacts Property Flood Risk Disclosure Law Read More »
The integration of Artificial Intelligence (“AI”) systems has become a forefront of potential innovation and efficiency, for insurers and insureds alike. Recognizing that AI systems may permeate all stages of the insurance life cycle, the Connecticut Insurance Department has issued a detailed Bulletin providing a comprehensive overview of the regulatory framework and expectations for insurers’ …
The Appellate Court of Maryland held today that an anti-assignment clause applied to void a policyholder’s “broad assignment.” In the Matter of the Petition of Featherfall Restoration LLC, the policyholders executed an “Assignment of Claim” which purported to give broad rights under the Policy related to a roof damage claim. Specifically, the “Assignment of Claim” stated …
Property in 60 Seconds: Maryland Court Voids Post-Loss Assignment Read More »
A California appellate court recently decided that policyholders can video-record insurer representatives and attorneys during Examinations Under Oath. While the California Insurance Code allows video-recordings during Examinations, the Code does not specify which individuals can be recorded, aside from the witness. That court considered the legislative intent of the Code and its language, allowing parties the “right …
Property In 60 seconds: California Addresses Policyholder’s Desire to Video EUO Read More »
The Supreme Courts for both Florida and Texas issued opinions addressing appraisal in those jurisdictions. The Texas Supreme Court in Rodriguez v. Safeco held that an insurer’s full payment of an appraisal award plus statutory interest precludes the recovery of attorney’s fees in an action under Chapter 542A of the Texas Prompt Payment of Claims Act. The court …
Property in 60 Seconds: Texas and Florida Supreme Courts Weigh In On Appraisal Issues Read More »
