Claims And Issues

"Fortnight of Faith": Practicing the Word Friday, June 29, 2012.

Starting on the first day of Summer, 2012, the United States Conference of Catholic Bishops has called for a "Fortnight of Faith," which will end on the Fourth of July.  As residents of the United States, and particularly but not alone for Catholics, this is our opportunity to enjoy the advertising efforts that have gone into this project.  This is our opportunity to make the Fortnight of Faith an observance of Truths that have stood for Centuries.  As a part of that effort, this post is part of a continuing series of blog posts intended to focus on exactly that, making the next two weeks an observance, not of political disputes, but of universal and eternal truths.

You are the light of the world.

A city built on a hill cannot be hidden.

Neither do people light a candle, and put it under a bushel, but on a candlestick;

And it gives light to All that are in the house.

Let Your Light so shine before people, that they may see your Good Works, and glorify your Father who is in Heaven.

Matthew 5:14-16.

Please Read The Disclaimer.

More Crop Insurance Capers: Premium Supports Hiked, Price Supports Lowered ...

... and Food Stamps are Cut Again.

    Price supports for crops paid farmers for not raising crops.  Under a new law passed by the U.S. Senate and sent to the U.S. House of Representatives, price supports have largely been replaced by Premium supports for Crop Insurance.

    This is part of a continuing story of directing Federal Taxpayers' money -- yours and mine -- to corporations who either raise nothing or who fail at raising something.  Instead of directing Taxpayers' money to price supports, the bill passed by the Senate directs Taxpayers' money to Premium Supports for Crop Insurance.  This is what the Senate did in its proposed legislation:

• Increase the existing Premium support payments from the current level of 62%.
• Increase the Crop Insurance guarantee from the existing level of "75 percent to 85 percent" of revenue.
• Allocate payments of Federal Taxpayer money every year totaling approximately $9,000,000,000.00 or $9 Billion.

See Ron Nixon, "Senate Passes Farm Bill With Bipartisan Support" p. A17, col. 1 (New York Times Nat'l ed., Friday, June 22, 2012).

    On the other side of the ledger, the Senate bill would also:

• Put limits on Crop Insurance payments.  ("Policy limits?")
• Require recipients of Premium supports to follow unidentified "soil and water conservation requirements".
• Reduce the allowable Premium subsidy support available to "farmers" which earn more than $750,000.00 in "adjusted gross income," presumably annually.  This would reportedly affect 1,500 "farmers" out of a total of 1,500,000, or 0.001%.  See id.

Parenthetically, when you hear the word, "farmer," do you think of a corporation making over 3/4 of a Million Dollars a year?

    The Senate bill, known as "the Farm bill," also reduces Food Stamps by $4,500,000,000.00 while increasing Premium supports for Crop Insurance to double that amount.  Id.

Previous posts on Crop Insurance Premium Subsidies and Supports include June 7, 2012 on Insurance Claims and Bad Faith Law Blog, and April 18, 2012 and June 6, 2012 on Insurance Claims and Issues Weblog.

Please Read The Disclaimer.

 

 

 

"Fortnight of Faith": Practicing the Word Wednesday, June 27, 2012.

Starting on the first day of Summer, 2012, the United States Conference of Catholic Bishops has called for a "Fortnight of Faith," which will end on the Fourth of July.  As residents of the United States, and particularly but not alone for Catholics, this is our opportunity to enjoy the advertising efforts that have gone into this project.  This is our opportunity to make the Fortnight of Faith an observance of Truths that have stood for Centuries.  As a part of that effort, this post is part of a continuing series of blog posts intended to focus on exactly that, making the next two weeks an observance, not of political disputes, but of universal and eternal truths.

Blessed are the Peacemakers;

For They shall be called the Children of God.

Matthew 5:9.

Please Read The Disclaimer.

No Subrogation For Surety Against CGL For Defense, Expert Expenses.

    In the case of Hartford Accident & Indemnity Co. v. Crum & Forster Specialty Ins. Co., 2012 WL 2260915 (S.D. Fla. June 15, 2012), Download Hartford v. Crum and Forster (S.D. Fla. June 15, 2012) PUBLIC ACCESS, a Federal Judge decided that a Performance Bond Surety could not claim equitable subrogation for certain defense expenses against a General Contractor's Commercial General Liability Insurance Carrier.

    The bond contained no duty to defend.  Hartford, the Surety, sued Westchester, a CGL Carrier for a General Contractor for defense expenses.  Hartford retained Carlton Fields to defend the g.c. and Hartford also retained Expert Witnesses on behalf of the g.c. which was sued for Damages allegedly resulting from the construction of a condominium in South Florida.  Hartford alleged its right to recover $762,753.23 "in costs and fees incurred by the law firm" and bills submitted by two Expert Witnesses which totaled, respectively, $93,271.29 and $67,147.98.  Id. at *1.

    Hartford based its claims on equitable subrogation.  The Federal Court denied Hartford's claims, denied Hartford's Motion for Summary Judgment, and granted the CGL Carrier's, Westchester's, Motion for Summary Judgment.  Hartford failed in its claim to equitable subrogation, the Court ruled, for several reasons.  In part, Hartford could not claim equitable subrogation in this case because it made its payments as a volunteer.  Hartford had no duty to defend under the Performance Bond it issued.  Id. at *5.

    Please Read The Disclaimer.   

"Fortnight of Faith": Practicing the Word Monday, June 25, 2012.

 Starting on the first day of Summer, 2012, the United States Conference of Catholic Bishops has called for a "Fortnight of Faith," which will end on the Fourth of July.  As residents of the United States, and particularly but not alone for Catholics, this is our opportunity to enjoy the advertising efforts that have gone into this project.  This is our opportunity to make the Fortnight of Faith an observance of Truths that have stood for Centuries.  As a part of that effort, this post is part of a continuing series of blog posts intended to focus on exactly that, making the next two weeks an observance, not of political disputes, but of universal and eternal truths.

Blessed are the Merciful; 

For Mercy shall be Theirs.

Matthew 5:7.

Please Read The Disclaimer.

Insurance Company Stops Russian Arms Shipment Headed for Syria.

    From time to time, your mind may wander, as my mind occasionally does, toward questions of the role that Insurance plays in the world at large.  Today, news surfaced about a British Insurance Company that turned a Russian freighter around on the high seas.  The freighter was loaded with an arms shipment bound for Syria, where as the world knows, the Syrian military is engaged in a campaign of killing Syrians.

    Specifically, the "Russian-operated freighter" was reportedly loaded "with advanced defensive missile systems and repaired Soviet-era helicopters".  It was on its way to Syria.  The actions of a British Insurance Company made the ship turn around.  See Rick Gladstone and Alan Cowell, "Syrian Air Force Pilot's Defection Raises Concern for Military" p. A7, col. 1 (New York Times Nat'l ed., "International" Section, Friday, June 22, 2012).

     According to unnamed British officials, "the British insurer of the Russian vessel, the 400-foot MV Alaed, had canceled its coverage policy because of the cargo, forcing the vessel to end the voyage."  Id.

    The reason why the British Insurer "canceled its coverage policy," is not given other than to report that it was "because of the cargo".  This is where experience with Insurance comes in handy.

    Clearly, an Insurance Policy was issued or it could not have been "canceled".  If the Policy in question was "canceled" because the Insurance Company found out what was actually in the ship's cargo, that would indicate two things:  One, that the Policy was rescinded, not simply canceled, and the other is that whatever the cargo was represented to be, did not match the identity of what was really in the ship's cargo.

    In short, it sounds like rescission, and that the Insurer's decision to rescind the Policy was based on something that was, or was not, stated in the application for the ship's cargo Insurance.

    Whatever the reason, the newspaper reports reflect several significant effects of Insurance on Syrian lives and Russian commerce.

Please Read The Disclaimer. 

    

"Fortnight of Faith": Practicing the Faith Friday, June 22, 2012.

    Starting on the first day of Summer, 2012, the United States Conference of Catholic Bishops has called for a "Fortnight of Faith," which will end on the Fourth of July.  As residents of the United States, and particularly but not alone for Catholics, this is our opportunity to enjoy the advertising efforts that have gone into this project.  This is our opportunity to make the Fortnight of Faith an observance of Truths that have stood for Centuries.  As a part of that effort, this post is part of a continuing series of blog posts intended to focus on exactly that, making the next two weeks an observance, not of political disputes, but of universal and eternal truths.

Blessed are they that mourn; 

For they shall be comforted.

Matthew 5:4.

    The bishop made a deal with Assad.

    Officials representing the current Syrian president, Bashar al-Assad, who is the son of the last Syrian president, Hafez el-Assad, wanted the bishop to send an outspoken priest away.  The priest, Rev. Paolo Dall'Oglio, was speaking out against the murders and the violence perpetrated by the Assad regime.  The bishop made a deal to silence the priest but allow him to physically remain in Syria.  See Neil MacFarquhar, "Syria Expels Jesuit Priest Who Spoke For Change" p. A4, col. 1 (New York Times Nat'l ed., "International" Section, Thursday, June 21, 2012).

    The priest refused to remain silent forever.  He recently spoke out again about the murders and the violence ordered by Mr. Assad.  Father Dall'Oglio has now been expelled by Mr. Assad's officials.  Father Dall'Oglio's reaction:

I am a monk.  My real country is heaven, the kingdom of God.  My real country is a moral belonging, it is not a place.

Id.

Please Read The Disclaimer.

Florida Chinese Drywall Damage Claims: Defend G.C., New York Law.

    In Great American Fidelity Ins. Co. v. JWR Construction Serv's, Inc., 2012 WL 1193848 (S.D. Fla. April 9, 2012), Download Great Am. Fid. Ins. Co. v. JWR Construction Serv's, Inc. (S.D. Fla. No. 10.61423, Order Filed April 9, 2012) PUBLIC ACCESS, a Florida Judge was confronted with the issue of whether there is a Duty to Defend underlying Chinese Drywall Damages claims under environmental liability insurance policies.  The Court in that case held that the Liability Insurer which issued the environmental liability insurance policies to the General Contractor at bar, owed a Duty to Defend Chinese Drywall Damages Claims in Florida under New York Law.

    The first of two Exclusions relied on by the carrier in this case, "the Faulty Workmanship / Own Work Exclusion," was held inapplicable first.  Id., 2012 WL 1193843 at *11-*15.  Great American relied apparently on the Florida rule governing the determination of a Duty to Defend, which is to compare the allegations in the underlying complaint against the Policyholder or other Insured, with the provisions of the Liability Policy.  However, this case as noted was determined by New York Law instead.  "New York law does not limit itself only to the four corners of the underlying complaint."  The carrier produced no evidence concerning key factual issues raised by the underlying complaint with respect to the Duty to Defend issue.  The Federal Court held that the carrier failed to meet its burden in moving for Summary Judgment and its motion was denied.  Id. at *15-*16.

    The carrier relied on one other Exclusion in its environmental liability insurance policies to defeat its Duty to Defend, its "Products Liability Exclusion".  The Federal Court held that this Exclusion did not apply in this posture, either.   Id. at *16-*20.

    And the Court did more in this decision.  The Court granted the Insureds' Motion for Summary Judgment and affirmatively declared that the carrier in this case owes a Duty to Defend the underlying claims including the claims alleged for Chinese Drywall Damages.  Id. at *20.

    Even more.  As  noted, the Court determined that Florida's choice-of-law rules require that New York Law be applied to Great American's Motion for Summary Judgment in this decision.  Nonetheless, the Federal Court in Florida had no trouble applying Florida's Statute on Attorney's Fees to be awarded to a Policyholder or other Insured which successfully contests Insurance Coverage:

In addition, the Court orders that Great American must immediately reimburse JWR for its defense costs thus far incurred in the underlying suits, establish a continual defense fund to provide for JWR's future defense costs, and pay attorney's fees for this action to JWR pursuant to Section 627.428, Florida Statutes. Furthermore, these proceedings shall be stayed until an underlying judgment or settlement has occurred.

Id. at *20.

Please Read The Disclaimer.

 

    

"CyberFraud Insurance" for Small Business Owners.

    One of the requirements of writing a blog like this, is the ability to admit that sometimes you do not know something.  I have been a small-business owner for over 26 years, and during that time I have not heard until now about the availability of the particular type of Insurance that I am about to describe to you.

    "Most unsuspecting owners do not own fraud insurance, and if they do, it includes only crimes like employee embezzlement."  However, small-business owners who have been victimized by CyberFraud know what many of us without that experience do not know:  There are "riders" available "covering cybercrime and fraudulent bank transfers."  They are "rare," but they are at least available if you search for them.  Pamela Ryckman, "Owners May Not Be Covered When Hackers Wipe Out a Business Bank Account" p. B11, col. 1 (New York Times Nat'l ed., "Small Business" Section, Thursday, June 14, 2012).

    This is an issue for businesses generally because Federal Deposit Insurance does not cover business accounts, only individual accounts.  It is particularly an issue for small businesses because, unlike large businesses, small-business owners generally do not have the same kind of firewalls or "IT Departments" guarding against CyberFraud.

    If you or your clients make your living as sole practitioners or in small businesses, you can contact an agent or broker for information about this type of Coverage.  Based on past experience, be clear that you are only asking about this Coverage, and not applying for it.  If you are marked as an applicant when you did not intend to apply, and if Coverage is declined, you may have to report that declination of Coverage for years to come if you ever do apply for it.

Please Read The Disclaimer.

FHA-INSURED MORTGAGES: LENDERS OUT OF COMPLIANCE, FHA CLAWBACK COLLECTION?

   The Federal Housing Administration (FHA) is an essential part of home buying in the United States.  The FHA does not actually lend money.  Instead it "insures lenders against losses on mortgages that meet its standards."  Nick Timiraos, "Probe Widens Into Mortgage Lenders" p. C2, col. 2 (Wall Street Journal, Thursday, June 7, 2012), truncated version previously posted online on June 6, 2012.

The FHA has been collecting settlements from Banks which allegedly did not comply with FHA standards before the Banks issued Mortgages which they asked the FHA to insure.  "In the past, the FHA has looked into whether lenders ignored cases of potential fraud and failed to properly verify borrowers ability to pay."  Id.  Sounds like the FHA has been looking into the subprime mortgage lending frenzy of the Great Recession.

Reportedly, the FHA is "broadening their investigation of mortgage lenders".  Id.

You go, FHA, you go.  Fraud and noncompliance with standards do not qualify as insurable risks.

 

Please Read The Disclaimer.

When Insurance Coverage Already Exists for Breast Reconstruction: Physician Assistance, ...

...Please.

    It is traumatic for a woman with breast cancer to have her breasts removed.  (Or for any other reason.)   A woman facing a diagnosis of breat cancer is not exactly a patient who should reasonably be expected to know that she may have Insurance Coverage for breast reconstruction.  Armed with that knowledge, many breast cancer surgery patients would absolutely be better disposed to recovery.

    Apparently, Texas and New York are among States which have enacted laws "requiring hospitals and doctors to discuss breast-reconstruction options with their patients before cancer surgery and provide the patient with information about insurance coverage."  Amanda Vahabi, Esquire, "Breast-Cancer Patients Are Missing Out On Reconstruction," an op-ed feature of "New Voices /A Forum For Readers Under 30," p. A19, col. 1 (Orlando Sentinel, Saturday, June 9, 2012).  Florida is not among those States.

    Incredibly, some (but by no means all) breast-cancer surgeons in Florida are against telling their patients about the option of breast reconstruction, and even to tell them that Insurance might pay for it, so they should check to see if they, the patients, have the Coverage.  Understandably, breast-cancer survivors are in favor of physicians who make a living from performing breast-cancer surgery to inform patients of the option of breast reconstruction -- and that it might be covered by Insurance so that the patients may check it out for themselves.

    It is time for Florida breast-cancer surgeons to enter the 21st Century and inform their patients not only about the option of breast reconstruction when that option is medically available, but also to inform their patients that the patients' Insurance Coverage might be available to pay for that option if the patients exercise it.  See again the op-ed article by Amanda Vahabi, Esquire, supra, a person who has already demonstrated professionalism as she begins her legal career, having just graduated from the University of Miami School of Law.  Best of luck to her.  And best of luck also to everyone else who pursuses the goal of informing breast-cancer patients of all their options, including to explore their available Insurance Coverage when Insurance Coverage availability can make such a big difference in the quality of life.

Please Read The Disclaimer.

 

 

Rally for Justice June 8, 2012!

    Catholic bishops have called for a rally on Friday, June 8, 2012.  Join and Rally for Justice!

    Rally for all the concerns of the Church and for all the concerns shared by so many people for so many years, concerns which justly cry out for a rally right now:

• Rally for the poor.  Protest budget plans for the Federal Government which require the poor to pay more taxes while at the same time offer deep Tax cuts to wealthy people at the expense of cuts in needed services.  Rep. Paul Ryan (R-Wisconsin) reportedly has attempted to say that reducing people to a condition unworthy of human beings under his budget plan is actually a "Catholic" value.  Show your support for true Catholic values today, real values passionately shared by many.  Rally for Justice!

 

• Rally for the homeless.  In Washington, D.C. the rally will begin at Noon in the parking lot between the Capitol Building and the U.S. Grant Memorial.  There are homeless within sight of that spot in our nation's capitol.  Reach out.  Ask how they are and, if you are bold enough, ask how you can help them at this moment, at least.  They are your sisters and brothers, and they require your concern.  Rally for Justice!

 

• Rally for the starving.  Attend the hearings that are taking place in the U.S. Capitol if you are in D.C. right now, on extending or restricting Federal Taxpayer subsidies for corporations to pay Premiums for Crop Insurance which will pay off when they plant crops in places where crops cannot grow.  See the post and links here on June 6, 2012 and on Insurance Bad Faith Law Blog on June 7, 2012.  If crops cannot grow, they cannot feed people.  Ask why aid to the hungry is being reduced, at the same time.  Rally for Justice!

 

    Rally also out of concern for all people who are reduced to a condition unworthy of human beings for any reason, including by rape, sexual or physical abuse, and war.

    Find out where the Friday, June 8, 2012 Rally is taking place in your community, and confirm that it is taking place at "Noon" or at some other starting time.  Rally for Justice today!

    And every day, show your support for Justice, for the values that are real.

Please Read The Disclaimer.

 

 

 

Crop Insurance Revisited.

    This is how the post here on April 18, 2012 began:

Crop Insurance and Federally Undefined "Material" Misrepresentations in the Application.

   Crop Insurance is flying under the radar of most Insurance Coverage practitioners.  It is reportedly a highly lucrative business, heavily subsidized by the Federal Government.  See Ron Nixon, "Report Says a Crop Subsidy Cap Could Save Billions" p. A15, col. 3 (New York Times Nat'l ed., Thursday, April 12, 2012).

    Subsidization of Crop Insurance Premiums by our tax dollars has now attracted even wider attention.  See David Rogers, "Environmental Groups Go After Crop Insurance" p. 1, col. 3 (Politico, Friday, June 1, 2012).

Please Read The Disclaimer.