Articles by Jim Sams

Immunity Doesn’t Protect Local Governments from Administrative Penalties, Texas Court Rules

Political subdivisions in Texas can’t use governmental immunity to evade administrative penalties for failing to timely pay workers’ compensation benefits, a state appellate court ruled Tuesday. A panel of the 3rd District Court of Appeals in Austin upheld a trial …

Louisiana Courts Still Tidying Up After Storm of McClenny Moseley Lawsuits

In December 2022, before much was known about how McClenny Moseley & Associates in Houston was able to set up shop in New Orleans and sign-up thousands of Louisiana clients in less than a year, US District Court Judge James …

J.D. Power: Auto Claimants More Satisfied Even Though Repairs Taking Longer

Auto repairs are taking more than twice as long as they did in 2021, but policyholders who filed claims appear to be taking that in stride. J.D. Power reported Thursday that the industry average claims satisfaction rating increased five points …

Texas Supreme Court to Hear Arguments in Challenge to Public Adjuster Law

Insurers and the Texas Department of Insurance hope to persuade the state Supreme Court to block a constitutional challenge to a law that prohibits roofing contractors from acting as public adjusters on their customers’ damage claims. The high court will …

Illinois Court Rules Insurer Had Contractual Right to Subrogation

Zurich American Insurance Co. may pursue a subrogation lawsuit against a subcontractor that it says forced it to pay a nearly $3 million builder’s risk claim by designing a defective stormwater detention system during construction of an academic building at …

Fla. Insurers Imposing New Limits on Amounts Spent to Match Appearance

The Florida Office of Insurance Regulation has approved policy forms filed by at least eight property insurers that limit the amount the carriers will pay to replace undamaged materials to create a matching, uniform appearance after repairs, state records show. …

Ohio Supreme Ct. Upholds Escape Clause in Progressive Auto Liability Policy

Acuity and Progressive Specialty Insurance Co. disputed who should pay after a 16-year-old boy borrowed a friend’s car and crashed it into a utility pole in Streetsboro, Ohio. The driver was insured by Acuity through a policy issued to his …

Ransomware Criminals Aiming at Third-Party Vendors in Hunt for ‘Big Game’

Ransomware victims have become less likely to pay extortion demands, but cyber criminals are changing their tactics by hitting third-party vendors and using data exfiltration instead of encryption when making ransom demands, according to a new report by cyber insurer …

5th Circuit Asks Whether Oilfield Law Protects Contracts for Work on Salt Mines

A federal appellate court is asking the Louisiana Supreme Court whether a law that was passed to protect oilfield contractors from demands by big oil companies that they be indemnified for their own mistakes also applies to contractors who work …

Penalties for Late Medicare Secondary Act Reports Take Effect Next Year

Federal rules that impose $1,325-per-day civil money penalties on insurers and other organizations that fail to report settlements or judgments that require payment for a Medicare beneficiary’s medical care will take effect on Oct. 11, 2024. The final version of …