News on Personal Injury Law and Insurance-Related Topics

News on Personal Injury Law and Insurance-Related Topics

Your Insurance Premiums at Work: AIG Pays Former CEO Sullivan a Severance Package Worth $47 Million
July 1, 2008, New York, NY
[Comment: a MUST READ for those who believe “tort reform” is necessary because insurance companies are “suffering”. AIG insurance products and services in United States include auto insurance, life insurance, accident and health insurance, and environmental coverage. Read on to know where your insurance premiums went last time they raised your rates.]

American International Group Inc. said it paid a $47 million severance package to former Chief Executive Martin J. Sullivan, whose resignation took effect Tuesday, July 1, 2008

Sullivan, who left his position in mid-June after two quarters of record losses at AIG, will receive severance of $15 million, and a bonus of $4 million for the portion of the year he worked, according to a regulatory filing. Sullivan also will hold on to outstanding equity and long-term cash awards valued at about $28 million, the filing said.
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Reporting by Dan Wilchins; Copyright 2008 Reuters

Almost ALL OF US get free credit report—national class-action lawsuit settlement
June 28, 2008 Washington D.C.
If you're thinking about buying a home or refinancing a mortgage, you may want to avail yourself of a forthcoming free service that could help you get a better mortgage rate.

Under the terms of a national class-action lawsuit settlement, you may qualify for six or nine months of daily monitoring of your credit file plus unrestricted access to your credit report and score. To be eligible, you must have had any form of open credit account -- a charge card, student loan, auto loan or mortgage -- at any time between Jan. 1, 1987, and May 28, 2008. An estimated 160 million Americans meet that standard, although you must sign up by Sept. 24 to take advantage of the settlement.
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Kenneth R. Harney; The Washington Post

Colorado Approves Auto Insurance Med Pay Bill, 'Bad Faith' Bill
June 12, 2008; Denver, CO
Colorado Gov. Bill Ritter has signed Senate Bill 11, which creates rules concerning funding for the provision of uncompensated trauma care to persons injured in motor vehicle accidents, and House Bill 1407, allowing the insurance commissioner to increase the penalties that the commissioner could impose when insurance carriers act unreasonably.

According to the SB11 bill text, 10-4-635, Colorado Revised Statutes, was amended so that insurance companies are required to offer $5,000 of auto insurance medical payments to consumers for bodily injury, sickness or disease resulting from the ownership, maintenance or use of motor vehicles.
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By Patricia-Anne Tom; The Insurance Journal

California Aims to Implement Pay-As-You-Drive Insurance Regs
July 3, 2008 Sacramento, CA California's Department of Insurance as well as state legislators are considering bringing "pay-as-you-drive" automobile insurance to the state, a system in which automobile insurance premiums would more accurately reflect how far motorists drive each year.
Assembly Bill 2800, sponsored by Jared Huffman, D-San Raphael, would allow insurers to apply different rating factors for voluntary insurance-verified annual mileage and applicant-estimated annual mileage.
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By Patricia-Anne Tom; July 3, 2008; The Insurance Journal

Vermont Diocese with $8.7M Abuse Verdict Can't Find Insurance Policy
June 28, 2008 Burlington, VT
Many Roman Catholics believe that the worst of the clergy sex abuse scandal is over. But in the Diocese of Burlington, it's deepening. The case of one cleric, assigned to Vermont parishes in the 1970s despite warnings from an Indiana bishop that the priest was suspected of molesting boys, is battering the local church.

Last month, a former altar boy who said the Rev. Edward Paquette molested him repeatedly three decades ago won an $8.7 million jury verdict in a negligence lawsuit against the diocese
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By John Curran; June 23, 2008; The Insurance Journal

Home Insurers Bitten by $350M in Dog Claims; Average Claim Tops $24K
June 25, 2008 National News
Man's best friend is sinking its teeth into homeowners insurance costs. Dog bites now account for one-third of all homeowners insurance liability claims, costing $356.2 million in 2007, up 10.5 percent from the previous year, according to the Insurance Information Institute (I.I.I.).

An analysis of homeowners insurance data by the I.I.I. found that the average cost of dog bite claims increased by 11.5 percent in 2007 (the most recent figures available) to $24,511. Since 2003, the cost of these claims has risen nearly 28 percent. However, the actual number of claims paid by insurers has remained relatively stable over the past three years at about 14,500.
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Insurance Information Institute; The Insurance Journal

Watchdog Consumer Group Finds Excessive Rates by Fireman's Fund; Lower Homeowners Rates in California 17.9 Percent
June 27, 2008 Sacramento, CA
Fireman's Fund is lowering its premiums by 17.9 percent for California homeowners, following an order issued by California Insurance Commissioner Steve Poizner. The savings, which are estimated to amount to $35.1 million per year, or an average of $512 per year per policyholder, come as a result of a challenge under Proposition 103's prohibition on excessive rates made by consumer advocacy group Consumer Watchdog. The rate decrease will take effect within 60 days of the order, issued June 20, 2008.
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Source: Consumer Watchdog, DOI; The Insurance Journal

Unreasonable Delays by Insurer in Settling Claims Results in $250K Fine
June 26, 2008; Sacramento, CA
California Insurance Commissioner Steve Poizner announced that Mercury Insurance Group will pay a $250,000 settlement for alleged claims handling violations.

"I'm pleased that Mercury has agreed to this settlement, which demonstrates that claims handling violations will not be tolerated in California," Poizner said. Mercury recently announced that it is reducing rates for policyholders, and I am hopeful that the company will continue to put its customers first. The Department of Insurance continues to make sure that all insurance companies are obeying the laws in place to protect consumers. "

The California Department of Insurance (CDI) conducted a review of consumer complaints filed with the Department against Mercury Insurance, Mercury Casualty and California Automobile Insurance Companies, collectively known as Mercury Insurance Group. Of the 121 files reviewed, a total of 258 violations were discovered to have occurred from January 2004 through December 2005. The violations involved several of the company's claims-handling practices, including unreasonable delays in affirming or denying coverage and issuing claim payments.
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The Insurance Journal

Suit alleges insurance company conspired to conceal dangers of asbestos
June 23, 2008 Jefferson County, TX
Brent Coon & Associates attorney Tina Bradley has filed a suit against 14 defendants, alleging chemical companies like Union Carbide acted with tortious indifference by exposing her client to asbestos and that insurance companies like MetLife conspired to conceal the truth about the hazards of the mineral.

The suit goes on to say defendant Metropolitan Life Insurance Co. was also negligent in failing to convey and actively suppressing information regarding the dangers of asbestos.

"In order to minimize its claims and maximize its profits, MetLife aided and abetted the concealment and misrepresentation of scientific studies showing that asbestos could cause cancer in animals, participated in an industry-wide fraud and decades-long deception of government authorities and the workers who used and handled the asbestos products of its insurers.
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By David Yates; The Southeast Texas Record