On September 2022, Governor Newsom signed SB1107 (the Protect California Drivers Act) into law, increasing California's minimum automobile liability coverage. Before the increase, California's minimum auto liability coverages were 46th in the nation; they hadn't seen an increase since 1967, when the original calculations were completed. California Liability Insurance: Is It Mandatory? California State legislators passed minimum financial responsibility laws in 1974 requiring drivers to carry liability coverages in their automobile insurance policies at the following minimums: $15,000/$30,000/$5,000 for physical injury or death for one person/two or more people/property damage. Minimum financial responsibility laws make drivers responsible for compensating injured drivers and passengers in an accident. When Do Increased Limits Go Into Effect & What Will They Do? The increased California minimum automobile liability coverages go into effect on January 1, 2025. The increased coverage could affect injured parties' compensation after a car accident. If a negligent driver caused injuries to another party, the injured…Read More
Health insurance policies are supposed to offer us coverage for a variety of situations. There are times, unfortunately, when insurance companies deny a claim for illegitimate reasons. This can be particularly devastating to the insured person, particularly if they are dealing with a long-term disability. People who are victims of unethical disability claim denials have options for recourse. If your claim in denied, you can either file an appeal or a lawsuit against the insurance company, depending on individual circumstances. An insurance company may attempt to deny or unreasonably delay a disability claim by repeatedly requesting information, claiming a patient lied on the insurance claim, disputing against a medical diagnosis, claiming a disability doesn’t exist and by outright cancelling the insurance policy. Depending on the situation, these methods may be examples of acting in bad faith. In California, There Are Two Different Types of Denied Disability Actions: California denied disability insurance claims – If you obtained your…Read More
A condominium complex had damage to its exterior, so the homeowners association in charge of the complex hired a construction firm, Saarman Construction, to repair the complex. Water damage was a major reason for the construction project. But about four years after the project was complete, water damage was visible at the complex, and one of the tenants sued the homeowners association and the construction firm. The homeowners association also sued Saarman Construction. Saarman’s insurance company, Ironshore Specialty Insurance, refused to defend Saarman in the case with the tenant (the lawsuit between Saarman and the homeowners association was settled out of court). Ironshore cited a mold contingency in their policy for the reason. However, a federal court recently ruled that Ironshore’s actions represented a breach in their arrangement with Saarman. The court said that because water damage was the cause of the mold, the policy would have covered Saarman even if mold wasn’t present. This…Read More
Homeowner’s insurance policies are designed to protect us if and when the unexpected happens. Unfortunately, not all home damage is protected, and in some cases coverage varies depending on your policy. But what if your home, or part of your home, collapses? Although it may seem like a cut-and-dry case for insurance coverage, this may not always hold true. In most cases, coverage depends on several complex factors, and can result in insurance litigation. Most standard homeowner’s policies define a collapse as “an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its current intended purpose.” A building or part of a building that is in danger of falling down is not considered to be in a state of collapse, even if it is bending, leaning, sagging, cracking, bulging or showing other evidence of decay. In…Read More
When you purchase medical, vehicle, life or home insurance, you are buying financial protection in the case that something unexpected should occur. As part of your premium payments, the insurance company agrees to provide financial coverage if a situation arises that falls under the plans policy. In some cases, however, insurance companies may not hold up to their end of the bargain and could try to avoid paying their share of the insurance coverage when you file a claim. This is known as bad faith insurance, and people who believe that their insurance company has engaged in a breach of contract may be able to file a claim against them and receive compensation. When you are involved in an accident or have a tragic event occur, your insurance company may contact you and ask for details surrounding the event. Once they have all of the information, they will make a decision as to whether they will…Read More
According to a new state report, California’s biggest health insurers are reporting inaccurate information about which providers are in their networks. As a result, 36 of the 40 reviewed providers could face heavy fines from the state for not complying with state rules. What does this mean for patients insured by these companies? In many cases, it can result in patients unknowingly going out-of-network for care, resulting in denial of coverage by the insurance companies. California officials discovered this problem when reviewing annual reports that were filed by health care insurers, as required by law. They found huge discrepancies between the provider lists use to measure patient access throughout the year and their final tallies. In many cases, the state’s report noted, the discrepancies included several thousand physicians. “Their inability to accurately document which providers are in their networks raises serious questions about the reliability of these networks,” said Sen. Ed Hernandez, chairman of the state Senate…Read More
Insurance plays a crucial role in the lives of many people. They purchase insurance policies to protect themselves and their families from events that could happen — but hopefully won’t. It is meant as a contingency. It is meant to make people feel safe in light of tragedy. It is meant to protect people. So when insurance companies act in bad faith or go out of their way to mitigate their liability under the terms of an insurance policy, the individuals or families affected will feel as though the literal reason for their insurance (or even insurance in general) has been stripped away. This isn’t right. In fact, it’s unacceptable and illegal for insurance companies to renege on their responsibilities and promises. As obvious as it may seem when an insurance company acts in bad faith, sometimes it can be difficult to tell. Insurance representatives will sound very confident when they talk to you about…Read More
Recently, Hurricanes Harvey and Irma wreaked havoc on Texas, the Caribbean Islands, and Florida. In addition to the devastating loss of lives, many people were left rebuilding, having suffered damage to total loss of their cars, their homes, and their businesses. Mass events like these serve as a startling reminder that accidents and disasters can hit us at any time, and just how important it is that insurance companies fulfill their obligations to their customers in a prompt and fair manner. Car insurance expert, isolated on white background. An absolutely essential part of helping people get back on their feet is insurance adjusters, who are hired for a wide range of duties relating to resolving insurance claims. Unfortunately, insurance companies often treat their adjusters as they do claimants and try to save every penny they can. This has resulted in legal battles over whether hard working adjusters are “exempt” employees and therefore exempt from receiving…Read More
Insurance exists to protect ourselves, as well as our families, homes and other property, from unforeseen circumstances. Insurers have an obligation to act in good faith when dealing with their policyholders. When an insurance company delays, denies or undervalues your claim, they may be acting in bad faith. Should you file a bad faith insurance claim? How do you know when it is the right time to do so? According to the California Insurance Code, the following may qualify as bad faith insurance tactics: Failing to acknowledge a claim in a timely manner Failing to settle claims with clear liability in a timely manner Trying to settle a claim for less than the amount requested Using previous claims as grounds to deny new claims Misrepresenting provisions in an individual’s policy or key facts in a case Failing to conduct a full investigation of a claim Cancelling a policy after a claim has been filed Requiring…Read More
Bad faith insurance is an insidious practice. It preys on good people who expect something out of their insurance policy, and on a macro level, it eats away at the trust people have in institutions. If you are considering enter into an insurance policy but have no faith that it will actually be upheld or fulfilled properly by the insurance company, then why would you agree to the policy? Without trust, there is no insurance business. Thankfully, there are guidelines and compliance regulations that force insurance companies to act in a professional manner when it comes to dealing with an insurance policy. The California Insurance Code bans bad faith insurance practices in these ways: An insurance company must acknowledge and settle a case in a timely and fair manner where liability is clear An insurance company can’t obscure the facts or misrepresent them in the case They can’t offer a settlement that is less than…Read More
