Florida’s Assignment of Benefits Reform Bill Becomes Law Ahead of Peak Hurricane Season

Florida’s new Assignment of Benefits (AOB) reform bill became law on July 1, 2019, a short time ahead of the peak of this year’s hurricane season. Time will tell if it results in the amelioration of the AOB litigation epidemic, fueled by Florida’s Attorney’s Fee Statute Section 627.428, awarding attorney’s fees to prevailing assignees in insurance disputes. The attorney’s fee statute is credited with having incentivized Florida contractors to litigate even minor differences[1] with insurers over repair work performed or
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Second Circuit Finds Insurer’s 52-Day Delay in Disclaiming Coverage Did Not Violate Insurance Law Section 3420(d)(2)’s Timely Disclaimer Requirement

The court of appeals for the Second Circuit recently confirmed that a liability insurer that waits to deny coverage so that it can investigate the facts giving rise to the disclaimer will not be estopped from denying coverage under Insurance Law Section 3420(d)(2), provided that the insurer does not use the investigation as a tactic to delay the disclaimer. United Fin. Cas. Co. v. Country-Wide Ins. Co., No. 18-3022, 2019 WL 2724267 (2d Cir. July 1, 2019). Section 3420(d)(2) requires
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Texas Supreme Court Opens the Door for Statutory Damages After Appraisal

Good faith use of the appraisal process to resolve legitimate valuation disputes under a property policy is no longer an absolute defense under Texas law to claims for statutory delay damages. In a pair of decisions regarding appraisal, the Texas Supreme Court held that when appraisal is invoked after the commencement of litigation, the prompt payment of the award by an insurer precludes statutory bad faith claims under Chapter 541 of the Texas Insurance Code, but potentially allows for statutory
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When a Bad Apple Spoils the Bunch: An Appraiser’s Bias May Cost the Policyholder in the Long Run

In a long-awaited decision, Colorado’s highest court ruled a designated appraiser in a property insurance dispute must remain impartial and free from favoring one party over the other. Specifically, the Supreme Court held that the policy language required appraisers to be “unbiased, disinterested, and unswayed by personal interest.” This decision is a win for the insurance industry, although the Supreme Court created a framework that is certain to lead to disputes about an appraiser’s partiality in the future. The decision
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