Nationwide Mutual Refutes Miss. AG Hood’s Allegations As ‘Unfounded’

September 16, 2005

  • September 19, 2005 at 2:49 am
    Chris says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    People, including the MA AG, really need to read “Exhibit A” that the AG attached to his suit that is the alleged form MS insureds are allegedly being “cajoled” to sign. If they did, they would see that, first, it is an advance payment receipt, not a waiver of liability as the MS AG alleges.

    Second, it is a receipt for an advance on the FLOOD policy’s CONTENTS coverage. The term ALE is nowhere on the form.

    Third, it clearly states that the insured reserves all of his/her/their rights under the policy.

    What the form does say is that the insured is claiming damages as a result of a flood, for which the insured is getting an advance under the CONTENTS coverage of the FLOOD policy. It goes on to say that if it is determined that the cause of loss was not flood, the FLOOD policy gets reimbursed for money paid that was not flood related.

    Since this form is for an advance of FLOOD policy CONTENTS benefits, and since the HO carriers are all denying that their policies cover flood, how could this form possibly be used by an HO carrier to pay an ALE claim, something that FLOOD policies don’t insure?

    It would appear to me that if this form has any use at all, it would be for the NFIP, and not Nationwide, or any of the other carriers named in the suit.

    Maybe Nationwide needs to third-party in the NFIP, and remove this case to Federal Court.

    Come to think of it, if the MS AG wants to make all HO policies in MS provide flood coverage, then the NFIP is just as guilty as the carriers for advertising the need for its product in MS, and collecting a premium, and for being in unfair competition (taxpayer subsidized premium rates) with the carriers. Maybe NFIP is a necessary party to any change in how MS insures floods.

    And, as we all know, the NFIP can only be sued in Federal Court, not in Hinds County Chancery Court, in Hood’s back yard.

  • September 19, 2005 at 2:55 am
    Chris says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Sorry for the typo. The first line should read “MS AG”; not “MA AG”. My apologies to the Attorney General for Massachusetts.



Add a Comment

Your email address will not be published. Required fields are marked *

*