Claims And Issues

No One Has Applied ...

                               ... Because No-One Is Home.

     In an Associated Press report published online on November 30, 2007, it is dutifully reported with a sense of astonishment that people who own homes destroyed or damaged by the 2005 Hurricanes in Louisiana and particularly by Hurricane Katrina (1) have not rushed to sign up for hurricane assistance from the State and (2) that some 40% of the people who do sign up and make appointments, do not keep them,  by Melinda Deslatte, "Hurricane Homeowner Aid Deadline Nears" (Copyright Associated Press, published online by South Florida Sun-Sentinel.com, Friday, November 30, 2007).

     People are not signing up for the Louisiana program and, when they do sign up they do not keep appointments in Louisiana, because they are not there.

    Many are in California, Texas, Georgia, and Heaven Only Knows what other States outside of Louisiana.

    Many of those who signed up and are still in Louisiana are in trailer parks  -- at least, they were in trailer parks in Louisiana until today.  FEMA is closing trailer parks for people displaced by Hurricanes Katrina and Rita.  Some have no place else to go.  FEMA's reply is that its trailers were only temporarily loaned to these displaced persons, it is reported in another Associated Press report, this one by Becky Bohrer, "Katrina Victims to Start Losing Housing/The Trailer-Park Homes Were Only a Temporary Solution, FEMA Says" (Associated Press; published by the Orlando Sentinel, including online at orlandosentinel.com, Friday, Nov. 30, 2007).  Trailers are not temporary if people stay in them more than 2 years, I suppose, and FEMA is out to prove that those trailers are temporary, nothing but temporary.  The tough-minded federal officials responsible for this eviction can stand any amount of pain felt by the persons who are now displaced twice:  Once by Hurricanes, and now a second time by officials paid by the current federal government.

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Colorado State Predicts Hurricanes: "Well, Never Mind!"

     The people currently in charge have done it again.  They have found opportunities to be wrong and they have taken them.

     NOAA, the National Oceanic and Atmospheric Administration, and its poor relation, FEMA, contracted for Hurricane predictions using Federal Tax Dollars.  They paid the landlocked Colorado State University to forecast Hurricanes in the Atlantic Ocean and the Gulf of Mexico.  Who is going to get your Federal Tax Dollars before 2008 to predict Earthquakes, the University of South Carolina?  Clemson?

     Well, a Colorado State University spokesperson is unfazed.  They were right then, and they are right now, he says in essence.  See "National Briefing"/"South"/"Florida:  Another LIght Hurricane Season in U.S." (Associated Press Copyrighted story published in New York Times Nat'l Ed., p. A20, col. 5, Wed., Nov. 28, 2007) and this summary by Ken Kaye, "'We Were Blessed,' Official Says of 2007 Hurricane Season" (South Florida Sun-Sentinel.com, published online Wednesday, November 28, 2007).

     The actual results in this 2007 Hurricane Season that officially began on June 1, 2007 and officially ends on the day of this post:

     2 Major Hurricanes, Cat III or higher;

     5 (Sun-Sentinel report linked above) or 6 (Associated Press linked above) total Hurricanes; and

     14 named storms.

     The Colorado State predictions funded by the current federal government ('tis unknown how many named storms on the East Coast they predicted from the shadows of the Rocky Mountains):

     5 Major Hurricanes, Cat III or higher, and

     9 total Hurricanes.

     Close enough for government work, or perhaps, close enough for work paid for by your government with your money?

Please Read The Disclaimer. 

 

Hurricane Deductible Actually Raises Profit, Potentially Affects Loss Investigation.

     Hurricane Deductibles are a fairly new Insurance policy provision.  They were apparently introduced in Florida, for example, following the 2004 Hurricanes including Charlie, Frances, Ivan and Jeanne.  They were standard issue in many Homeowner's and other Property Insurance Policies before Hurricane Wilma struck Southeast Florida in October, 2005.  That includes the Homeowner's Insurance Policy with Hurricane Deductible that was at issue in Fabricant_v. Kemper Independence Insurance Co. (S.D. Fla. Case No. 06.80527, Opinion Filed February 9, 2007).pdf.  This link is to the official online report of the Court.  This decision is also reported at 474 F. Supp. 2d 1328, 20 Fla. Law Weekly Fed. D731 (both subscription required).

     For two reasons, this new decision interpreting a new policy provision is important.  First, the Insurance Company issuing a Homeowner's Insurance Policy with a Hurricane Deductible earned additional profits of at least $1,725.45 in that one case.  The Policyholders claimed Coverage for a Condominium Association special assessment in the amount of $2,225.45 as the Policyholders' assessed share caused by damage to common areas during Hurricane Wilma.  The Policyholders paid the special assessment and claimed reimbursement under their Homeowner's Insurance Policy.  The Federal Court denied their Coverage claim, because of the Hurricane Deductible.

     The Homeowner's Policy at issue contains two Deductibles and in that regard, it is a typical Homeowner's Policy in present-day Florida.  One Deductible is what the Federal Judge called a "general deductible of $500".  See attached official Opinion at page 2; 474 F. Supp. 2d at 1330. The Federal Court also recognized that it was "a standard policy deductible of $500".  Id. at 6; 474 F. Supp. 2d at 1331-32.  If that standard general deductible applied in the Fabricants' case, they would have been reimbursed $1,725.45 under their Homeowner's Policy, in all likelihood.  That deductible did NOT apply, the Federal Judge ruled.

     Instead, the second Deductible in the Fabricants' Homeowner's Insurance Policy applied to the special assessment that resulted from Hurricane Wilma.  The second Deductible is a Hurricane Deductible for the amount of $2,800.00.  The Hurricane Deductible being larger than the special assessment, the Federal Court ruled that Mr. and Mrs. Fabricant did not meet their Hurricane Deductible for the special assessment in this case, and they recovered nothing under their Homeowner's Policy.  The Federal Judge dismissed their Coverage action and the case is closed.  Id. at 8-9; 474 F. Supp. 2d at 1332-33.

    

Homeowner's Insurance Quiz for Arizona, Colorado, Florida and Texas Homeowners

     Who in Heaven's Name are such Insurance Companies as American Integrity, American Strategic, Coral, Edison, HomeWise, and PURE Risk Management?  Answer:  These are some of the 'new' Insurance Companies coming to your area to offer Coverage in unseen terms for unknown prices!  They may or may not be rushing in where the likes of Allstate, Nationwide and State Farm may fear to tread:  Homeowner's and other Property Insurance Markets.    Whether they offer you a good choice in these Markets is up to you and your own due diligence, though.  Here is a brief newspaper report that summarizes each of these 'new' Insurance Companies.  Check these Companies out online or in person or ask around about them, and let me know what you find.

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More on Mississippi cleansing

     Building permit records in Biloxi, Mississippi since the 2005 Gulf Coast Hurricanes speak as though they had voices.  They tell that less than 10% of single-family homes have been permitted for rebuilding in the last 2 years.

     It is not that money to rebuild is not available.  It is.  There is $600,000,000.00 in Federal Tax Money available in housing aid.  Or, that is, there will be unless the Governor of Mississippi and his administration are successful in diverting it to other uses at this time.

     They have proposed that housing aid be diverted and spent instead to expand the Port of Gulfport, Mississippi.  This will not rebuild Mississippi homes destroyed in 2005.  Make no mistake. 

     The plan has the seeming virtue of consistency, however.  Before the Hurricanes of 2005, the main type of rental dwelling unit on the Gulf Coastline was in small rental complexes or houses.  Some 20,000 of these units were damaged or destroyed in the State of Mississippi by the Hurricanes of 2005.

 

More Than Postscripts Now: Subprime Collapse Falls on Insurers Too

     Allianz is the largest Insurance Company in Europe.  It has been hugely affected by the subprime collapse.  It is reported that its shares are trading at the lowest valuation since 2003, that its shares trade at a current price comparable to another Insurance Company rocked by subprime markdowns:  Swiss Reinsurance Co., and that its stock has fallen 22% in the last four months at a rate greater than the Bloomberg Europe 500 Insurance Index, in Oliver Suess, "Allianz Investors Find New Cause to Rue Dresdner Deal:  Subprime" (Bloomberg.com, Monday, November 26, 2007).  A reported culprit is Dresdner Bank, which Allianz purchased six years ago.  There are "suspicions" about the solvency of Dresdner Bank in 2007 because of subprime mortgages which may be held by the Bank.

     The emerging effects of the subprime collapse and markdowns of securities values were noted in posts here on 11.08.07 and 11.15.07, with Postscripts added on 11.16.07 and 11.19.07 too.  In the same posts, the downward effects on Swiss Reinsurance Co. were noted and the likely spread of subprime markdowns to the Insurance Industry was predicted.  It did not require much knowledge of finance to see that coming to the Insurance Industry.

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Flood Maps and Flood Plains: Sorry is not an Option.

     It is reported in an Associated Press copyrighted story that the Army Corps of Engineers has miscalculated the flood plain in maps it drew up showing the Corps' highly publicized improvements to the City of New Orleans' canal drainage systems.

     Instead of reducing flooding by 5 and a half feet in certain neighborhoods, it would reduce floods by 6 inches, all during a once-in-a-century storm.

     It was not the Army Corps of Engineers that publicized this "discrepancy," the A.P. reported.  This mistake was found by a TV station in New Orleans.

     The availability of flood insurance depends on the location of a home in relation to the flood plain, which is a fact included in the A.P. story.  The Corps' current mistake requires the flood plain shown on its maps to be redrawn.  In the meantime, people with expensive homes built on the faux flood plain, which is now not really the actual flood plain basis for flood insurance, may not have many options.  A link is not available to this A.P. story published online by the South Florida Sun-Sentinel, but should be searchable by interested readers.  In the meantime:  See Cain Burdeau, "Mistakes Made in New Orleans Flood Maps" (Associated Press; published by South Florida Sun-Sentinel.com, Saturday, November 17, 2007).

 Please Read The Disclaimer.

Garbage In, Garbage Out in Florida: Baseless Computer Modeling ....

                                                Still Denies Rate Hikes.

     Many Homeowner's Insurance Companies and other Property Insurance Companies in Florida have asked for rate hikes based on 'alternative' computer models of Catastrophe Risk.  These models appeared for the first known time after the 2005 Hurricanes.  Insurance Companies across the country have relied on them in support of applications for increased premiums because of exposure to Hurricane and other Catastrophe Claims allegedly magnified beyond the comparatively benign results based on facts as in the standard, approved computer model.  These rate requests were not successful in 2006, certainly to the extent that any one of them relied on unsupported, 'alternative' computer models of high-risk-opinion data.   This background is discussed and analyzed in previous posts on this site, including these two posts at Christmastime, 2006:  "Primary and Excess Flood Insurance ... And CatClaim Computer Models" (December 24, 2006) and "Computer Models:  Facts In, Opinions Way Out" (December 23, 2006).

     In 2007, it is Allstate which has been denied increased premium requests based on unauthorized models.  To be sure, Allstate is not the only Insurance Company in Florida in 2007 requesting rate hikes.  However, Allstate's proposed rate hikes were rejected and one of the reasons continues to be reported use of unauthorized modeling to predict future Hurricane Catastrophe Claims.   The 'new modeling' if you will depends on opinion input, resulting as might be expected in predictions output of more and greater so-called Catastrophe Claims, which lead in turn to requests for rate increase output.  The unauthorized use of models to support unsuccessful applications for rate hikes in Florida is one of the "5 Big Stories:  The Week in Business" by Jeff Harrington (St. Petersburg Times Online at www.sptimes.com, Sunday, November 18, 2007).

Please Read The Disclaimer.

Catastrophe Claims: Rate Increases Denied, But Where's The Relief?

         Hurricane Wilma Claims 2 Years Later:  Where's the Relief?

    Hurricane Wilma damaged a lot of homes two years ago.  Wilma struck Fort Lauderdale and surrounding areas hard.  FEMA is apparently not an option for relief there.  A separate brainchild called the Federal Community Block Grant Disaster Recovery Initiative Program is distributing money to cities and counties in small and differing amounts without visible strings tied to Hurricane Wilma relief.  Some localities are sharing the available proceeds with residents, although there is not enough 'relief' to go around.  Other localities are instead buying generators and paying for construction on drainage systems.  Having already proven spectacularly that FEMA could be made not to work, the current federal government has redirected prayers and hopes to its Big Drip (BGDRIP) for some relief now in Fort Lauderdale, Florida, where for 2 years it appears there has been none at all.    See this article by Juan Ortega, "Victims, Cities at Odds Over $41 Million in Federal Wilma Relief" (South Florida Sun-Sentinel.com, Wednesday, November 21, 2007).

                    Catastrophe Insurance Rate Hikes Denied.

     Allstate Corporation is reportedly the third-largest Property Insurer in the State of Florida.   One of Allstate's subsidiaries in Florida, Allstate Floridian, is itself reported to be the fourth-largest Property Insurer in Florida.  Allstate Floridian and other

Insurance Expert Not Reimbursable in Sixth Circuit, Court Holds.

     In a post today on Insurance Claims Bad Faith, www.insuranceclaimsbadfaith.typepad.com, a recent Sixth Circuit decision is examined in which the Federal Court unambiguously held that a party to that Insurance Case could not be be reimbursed for the fees of its Expert Witness, i.e.,  "the hourly rate charged for the expert's time and services" under various Federal Rules and Statutes.  Careful attention should be paid by parties and practitioners to those Federal Rules and Statutes, and others.

Please Read The Disclaimer.

Mississippi cleansing: Covering and Recovery After Katrina.

               Some of the Things that Insurance Does Not Cover, in Time,

                     Before a Possible "Bodily Injury" caused by such as
                        continuous or repeated exposure to conditions.

     It is reported that Mississippi residents displaced by the 2005 Hurricanes have been living for over 2 years in more than ten thousand (10,000) temporary trailers paid for by Federal Tax Dollars.  Leslie Eaton, "In Mississippi, Poor Lag in Hurricane Aid" (New York Times, Friday, November 16, 2007).

     In Louisiana and Mississippi taken together, it is also reported,  persons displaced by Hurricanes Katrina and Rita in 2005 are at this time living in over 48,000 trailers paid for by Federal Tax Dollars.   Everyone's favorite Federal agency, the Federal Emergency Management Administration, canceled a scheduled test for formaldehyde toxic air contamination in occupied trailers.  FEMA has already concluded, though, that used trailers will not be used again at this time due to the public health hazard caused by formaldehyde toxic air contamination in the trailers.   Disgruntled  trailer residents in Louisiana have, after FEMA made that latest decision, filed a Federal lawsuit to force FEMA to test the occupied trailers in Louisiana for the effects if any on air quality and public health of the actual persons who occupy them.  See an online Associated Press newspaper article that could not be successfully linked, written by Michael Kunzelman, "FEMA Trailer Dwellers Seek Toxin Tests" (Associated Press, published in WashingtonPost.com, Sunday, November 18, 2007).   

 

Top 8 Catastrophes for Insurance in Our Time!

     Can you guess what the Top 8 Catastrophes for Insurance in Our Time are?  To be considered a Catastrophe on this list, Claims Paid apparently had to be at least $25,000,000.00 or more.   In descending order, they are ranked by the Insurance Services Office in 2006 Dollars, presumably by Claims Paid:

                                                  8. Civil Disturbance    $1,100,000,000.00.

                                                  7.  Fires                    $6,600,000,000.00.

                                                  6.  Wind/hail/flood    $9,300,000,000.00.

                                                  5.  Earthquakes        $19,100,000,000.00.

                                                  4.  Terrorism            $22,300,000,000.00.

                                                  3. Winter storms      $23,100,000,000.00.

                                                  2. Tornadoes            $77,300,000,000.00.

And the BIGGEST CATASTROPHE OF ALL IN TERMS OF INSURANCE CLAIMS PAID:

                                              1.  HURRICANES          $137,700,000,000.00.

Why a list of 8?  Dunno!  That's all they wrote.
There are two things on this list that are totally caused by human beings,  next time you consider what is a Catastrophe and what is not, and together those 2 things account for 8% of the total insured losses in 2006.  Sobering, isn't it?

Source:   Insurance Services Office figures summarized by Phyllis Korkki, "The Count/In a Catalog of Catastrophes, Hurricanes Rule"  (Sunday New York Times Nat'l Ed., Business Section, p. 2, col. 5, Sunday, November 18, 2007).  Examine the results on the ISO site at www.iso.com.

Please Read The Disclaimer.

Federal Catatrophe Insurance Fund

      Recent news that the U.S. Congress is acting to enable a "Hurricane Catastrophe Risk Fund"
      begins this post with an update of an earlier post from September 23 on the possibility of a 'Risk
      Fund' for Hurricanes.

     In basic and simple terms, Hurricane Insurance Coverage is extremely scarce.  Property owners including Commercial Insurance Policyholders facing the risk of damage from Hurricanes cannot find or cannot afford Hurricane Risk Insurance.  Economic realities dictate many business changes yet to come, including the absence of Commercial development in Hurricane Risk areas such as in Florida and other Coastal States.  "It is safe to say that as Americans we're all in it together.  So if Congress decides it is responsible for one kind of catastrophic risk, it should consider the others as well." Editorial, "House Turns Its Back On Hurricane Risk," St. Petersburg Times, Saturday, September 22, 2007 (see also the entire post on September 23, 2007).

     The Fund that would be enabled if the U.S. Senate adopts the bill passed by the U.S. House of Representatives last week would be voluntary.  The Federal Government would provide as much as $120,000,000.00 over 6 years in financing for management and technical expertise.   The Fund would be financed through the sale of Catastrophe Bonds by participating States.   

    

Subprime Plunge and Credit Crunch Continue.

     This continues the post here on November 8, 2007.  The subprime plunge is claiming its most recent high-profile casualties.

     Barclays and Wachovia are the latest in line.   Barclays, the United Kingdom's third-largest bank, announced its writedown of roughly $2,700,000,000.00 on securities that apparently were not so secure after all.  They were tied to subprime mortgages in the United States.  Ben Livesey and Jon Menon, "Barclays Writes Down $2.7 Billion on U.S. Subprime (Update 3)" (Bloomberg.com, Thursday, November 15, 2007).

     Wachovia Corporation has reportedly cut the value of securities tied up with subprime mortgages by $1,100,000,000.00 in its recently completed Third Quarter.

     On top of that $1.1 Billion sum, Wachovia announced that it has also established a reserve for loan losses of $600,000,000.00 in the coming Fourth Quarter.

     If a powerhouse like Barclays or Wachovia Corporation is compelled against its will not only to cut the value of securities it took to 'back' subprime mortgages, but also to announce its markdown to a waiting world, can Insurance Companies be far behind?  AIG has already been forced to take this action, as was previously posted here.  Will AIG be alone for long?  Not for long.  In a report to be published on November 20, 2007 but posted online on Monday, November 19, 2007, see "Swiss Re Takes $1 Billion Write-Down" by Julia Werdigier (New York Times Online, Monday, November 19, 2007).

The "New Modeling": Higher Loss Results, New Subpoenas Too.

     In a revealing and overlooked answer, Florida's Insurance Commissioner responded to a question about subpoenas issued to several Insurance Companies, the subject of a post here on October 21, 2007.  The Florida Insurance Commissioner, Kevin McCarty, an appointee of the Governor, disclosed that a part of the reason for issuing the subpoenas is "we have the rating organizations and the reinsurers and the brokers using new modeling techniques, that are using five years instead of 30 years, where they come up with much higher losses."  See Kathy Bushouse, "Q&A With Insurance Commissioner Kevin McCarty" (South Florida Sun-Sentinel.com, Oct. 21,  2007).  [Emphasis added.]

     More to come, no doubt.

Please Read The Disclaimer.

And Homeowners, Check Your "Replacement" Coverage!

    Conflicting values and Insurance Coverage positions are synthesized in an excellent news article by Solomon Moore, "After Fires, Homeowners Feeling Insurance Pinch/California Policies Are Found Inadequate" (New York Times Nat'l Ed., Tuesday, November 13, 2007, p. A18, col. 1).  More will be written about the important issues touched upon in this news article, there is little doubt.  In it, the California Department of Insurance is cited as the source for evidence that up to 40% of California homeowners do not have enough coverage for the cost to replace their homes at this time.

     Others apparently have strong opinions about whether California homeowners are under-insured for the cost of replacing their homes.  Opinions without evidence are not reliable evidence, including in California.

Please Read The Disclaimer.

Making a Home Insurance Claim: Keep Receipts!

     Keep receipts.  Share them with your Homeowner's Insurance Company for every single item that is in your damage claim if you can; share them for every single item for which you have receipts.  Keep copies.  These are some of the steps to add and amplify to this list by Kathy M. Kristof, "Personal Finance/How to Collect on Home Insurance After a Disaster" (LATimes.com, Sunday, November 11, 2007).

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Notre Dame's Ninth Loss, Coach's Five Fumbles ...

                              ... All In the 2007 Football Season.

Top Five Fumbles by a Notre Dame Head Coach in a Single Season, 2007:

1.  First Notre Dame football team to lose 9 games in one season, ever.

2.  First Notre Dame football team to lose back-to-back games to service academies since the Normandy Invasion in World War II.

3.  First time since the year that President John Fitzgerald Kennedy was assassinated, that a Notre Dame football team lost to a service academy by a margin so big.

4.  Two more sacks allowed and this Notre Dame football team will set a record for most sacks allowed in a single season (a record which has only been kept since 2005); and

5.  Three more losses at home with this head coach in just his third season (which is not over yet), than Head Coach Ara Parseghian's teams had in his 11 years as the Notre Dame Football Team's Head Coach.

Memo to the head coach at this time:
For God's Sake, Go. 

Please Read The Disclaimer.

Homeowner's Premiums One-Site Comparison Update.

     On October 22, 2007 I posted the welcome news that the State of Delaware has recently offered a site that compares premiums for Auto Insurance and Homeowner's Insurance Policies.  Here again is a link to that page on the Delaware Insurance Commissioner's site.

     Not to be outdone, the State of Florida has also constructed a site for comparing different Homeowner's Insurance Premiums which you can link to here: www.shopandcomparerates.com.

     As other web sites and sources of comparing premiums are made available by reputable agencies including but not limited to agencies of State Governments, they will be announced here.  Search for the best premium for the available coverage you want and that is available from the entire Insurance industry!

Please Read The Disclaimer.

AIG: Markdowns Tied to Subprime Plunge and Credit Crunch.

     AIG is not like other Insurance Companies.  It is bigger, for one thing.  A lot bigger.

     AIG's investments are also huge.  They are diversified.  Let us hope that they are really, really diversified.  AIG is the only Insurance Company to report huge write-downs due to what its CEO, Mr. Martin Sullivan, attributed to "residential mortgage and credit market conditions", in other words, the bottom that fell out of the subprime mortgage market, the overall real estate market, and the resulting huge decline in credit availability to homeowners.  See Peter S. Goodman, "Markets And Dollar Sink As U.S. Slowdown Grows/Homeowners Feel the Pinch of Lost Equity" (New York Times Nat'l Ed., p. A1, col. 5, Thursday, November 8, 2007).

    AIG is the only Insurance Company reported to write down anything like the nearly $2,000,000,000.00 that AIG wrote down in its 3rd Quarter.  See Joseph B. Treaster, "A.I.G. Takes a $1.95 Billion Hit on Its Housing Investments" (New York Times Nat'l Ed., Business Day Section, p.C4, col. 1, Thursday, November 8, 2007).

     Is it the only Insurance Company, or is it just the first?

     In its 3Q, AIG reported a loss of roughly 1 in 1,000 or 1/10 of one percent:  $864,000,000.00 in a reported investment portfolio totaling $872,300,000,000.00.  Let's keep an eye out for future earnings reports for sure, even from sectors that may seem unlikely to be adversely affected by current market conditions.

Please Read The Disclaimer.

When is Living Long, Living Well?

     What is "long-term insurance," and is it right for your Mom or Dad -- or for you?  Take a step toward reviewing some available information by Jonathan Peterson, "Long-Term Insurance:  Worth Its Weight?/The Policies Work for Many, But Consumers Should Read the Fine Print.  And Premium Hikes Can Be Shocking." (Los Angeles Times.com, Sunday, November 4, 2007).

Postscript of Sunday, November 11, 2007:
Take another step toward reviewing similar available information by Michelle Singletary, "Take a Long Look at Nursing Care Insurance" (Published Online on Sunday, November 11, 2007 by the Boston Globe at www.boston.com/business/personalfinance).
Please Read The Disclaimer.

Notre Dame Says: "Charlie, you're doing a heckuva job!"

 First U.S.C., now this.  There have been so many amazing developments to my beloved alma mater's football team this season, that I cannot remain silent and comment professionally only on Insurance Issues.  Occasionally, I cannot remain silent about my beloved Notre Dame.  Did I mention that I was a Quarterback at Notre Dame when Ara Parseghian was the Head Football Coach?  More on that another time ....

     For 43 games in a row, until yesterday, Notre Dame beat Navy.  You know, I almost rooted for the Navy football team, but I did not I will confess.  I still rooted for Notre Dame.   It is like rooting for the people of the Gulf Coast to outlive the Hurricanes, the damage, and the Brownies too.  You root because for you, that is the right thing to do.  Speaking of right things to do, what is the right thing to do when you are the head coach of a great University football team, you are in your third year, your won-loss record is 1-8, and ... you lose to a team your team has beaten 43 times in a row? Read comments to this article published by The South Bend Tribune, "This Ship Has Sunk".

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"Eddie Haskell's in Charge, And Wally is Nowhere to be Found!"

     "It's Like Eddie Haskell is in Charge, and Wally is Nowhere to be Found!"
      Paula Poundstone, on NPR's show, "Wait, Wait Don't Tell Me!", Sat., 11.03.07
   describing the Federal Government and in particular FEMA at the present time.

     The fires in California have slipped off most front pages and TV broadcasts a week after they inflicted much tragedy, left behind a great deal of damage in addition to several deaths, and raised Insurance Coverage Questions that will soon be filed in California Courthouses.  Here is a link to an update, understandably enough found in the Los Angeles Times:  Joe Mozingo, "Downed Power Lines:  A Fiery Culprit Only Money Can Stop" (Los Angeles Times Online, Sunday, November 4, 2007).

     There is already an Insurance Question that this news report inspires:  Will Homeowner's and other Property Insurance Companies calculate their rates and provide Premium reductions to applicants for their Insurance, who are located in areas in which power lines are buried underground and thus the risk of fire damage is far less, compared to applicants for their Insurance who are located in areas where power lines are overhead?    Time will tell.

Please Read The Disclaimer.

Pennsylvania Mistakes Do Not Necessarily Mean First-Party Bad Faith.

     In Pennsylvania, Bad Faith claims are made under a Statute, 42 Pa. Cons. § 8371.  Bad Faith is proved by clear and convincing evidence under that statute, a Pennsylvania state law holding that was recently followed in Smith_v. Westfield Insurance Co. (E.D. Pa. Case No. 06.3077, Opinion Filed June 15, 2007).pdf.  See page 10 of the attached Official slipsheet Opinion, linked above.  This opinion is also available as 2007 WL 1740816 (subscription required). In Smith, a First-Party case involving disputes over a Homeowner's Insurance Policy, the Federal Court held that a mistake is not First-Party Bad Faith.  "That the determination may turn out to be incorrect does not mean that it had a dishonest purpose or was made with a reckless disregard for the truth."  Id. at  11.

     It is the majority if not unanimous view in United States jurisdictions, that a mistake, standing alone, is not First-Party Bad Faith.  See Dennis J. Wall, Litigation and Prevention of Insurer Bad Faith § 9:6 (2nd Edition 1994 & 2007 Supplement), published by West which makes available online access by subscription.

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