‘State Farm and other insurers say their homeowner policies cover damage from wind but not from water, and the policies exclude damage that could have been caused by a combination of both, even if hurricane-force winds preceded a storm’s rising water.’
Seems straightforward to me. If someone needs an attorney and a judge to explain that to them, go ahead and pay for an attorney and a judge. But punitive damages? Nero is fiddling.
“and the policies exclude damage that could have been caused by a combination of both, even if hurricane-force winds preceded a storm’s rising water.'”
The above portion of the policy language was held to be ambiguous and therfore unenforceable. The carriers had similar jurisprudence already on the books and THEY CHOSE TO IGNORE IT! Therefore punitive damages.
While I do disagree with Statefarm’s methods in this particular case I find the punitive damage very excessive. 10x’s the actually loss incurred is basically jackpot justice. Have you ever considered that these massive awards are part of the reason why insurance rates are jumping?
Also adjusterjoe, we all understand that you hate Statefarm but please, lets use this forum for hopefully reasoned and intellegent debate? Do you not think that the damages in this might be excessive as well?
Let’s be realistic: rates are BEING “jumped” by greed-struck people in companies who use mythology of exorbitant payouts as the cause. Get educated on the statistics that [1]most policyholders who could sue do NOT sue AND [2] insurance companies & banks are the MOST PROFITABLE sectors in the economy because costs of doing business are carried by the customers! In fact, the punitive damages under discussion are INSUFFICIENT for the degree of bad faith of the insurer.
So, mmagnolia, you believe that insurance and banking are the most profitable because the costs of doing business are carried by the consumer? You obviously have an MBA.
Can you tell me who carries the cost of doing business in every other sector of the economy? If you said anyone other than “the consumer” you are WRONG! That’s why when minimum wage goes up, prices go up, when taxes go up, prices go up, when the price of raw materials go up, prices go up. It’s simple economics, the consumer pays for EVERYTHING.
The only “business” that pushes the costs onto anyone other than the consumer is the government. Hardworking Americans pay taxes so lazy good for nothing losers can live on foodstamps and welfare while they reproduce so we can pay for their kids too.
Your original post stopped when it said
“SEE ALSO DEFINITION FOR COMBINED RATIO. And you failed to post that definition.
I do not begrudge the insurance industry for making a living. I make 100% of my living from the insurance industry. What I do not like is the individual carriers like State Farm abusing their owners (insureds are the owners of the company in a MUTUAL COMPANY) when they have a claim. You continue to refuse to addres that State Farm is a MUTUAL COMPANY. They act as though they are a stock company.
The other thing I cannot tolerate is the GUARANTEED PROFIT the insurance companies have come to EXPECT in rate increases thru the commissioners.
This is a seriously uninformed comment. There was a study released a month or two ago that showed the rate of return on investment for insurance companies was well below many other industries. Does anyone have a link to this study to educate our friend?
Let me get this straight. The insurance carriers want to be able to exclude what they want when they want in their contract when it comes to wind and flood, but they are against adding the peril of wind to the national flood policy. Does that seem strange to you folks ? Why don’t they just offer the coverage for a price, and give the customer a chance to accept it or reject it. That way everyone knows from the beginning what their are getting.
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‘State Farm and other insurers say their homeowner policies cover damage from wind but not from water, and the policies exclude damage that could have been caused by a combination of both, even if hurricane-force winds preceded a storm’s rising water.’
Seems straightforward to me. If someone needs an attorney and a judge to explain that to them, go ahead and pay for an attorney and a judge. But punitive damages? Nero is fiddling.
“and the policies exclude damage that could have been caused by a combination of both, even if hurricane-force winds preceded a storm’s rising water.'”
The above portion of the policy language was held to be ambiguous and therfore unenforceable. The carriers had similar jurisprudence already on the books and THEY CHOSE TO IGNORE IT! Therefore punitive damages.
seems straightforward to me.
While I do disagree with Statefarm’s methods in this particular case I find the punitive damage very excessive. 10x’s the actually loss incurred is basically jackpot justice. Have you ever considered that these massive awards are part of the reason why insurance rates are jumping?
Also adjusterjoe, we all understand that you hate Statefarm but please, lets use this forum for hopefully reasoned and intellegent debate? Do you not think that the damages in this might be excessive as well?
Let’s be realistic: rates are BEING “jumped” by greed-struck people in companies who use mythology of exorbitant payouts as the cause. Get educated on the statistics that [1]most policyholders who could sue do NOT sue AND [2] insurance companies & banks are the MOST PROFITABLE sectors in the economy because costs of doing business are carried by the customers! In fact, the punitive damages under discussion are INSUFFICIENT for the degree of bad faith of the insurer.
So, mmagnolia, you believe that insurance and banking are the most profitable because the costs of doing business are carried by the consumer? You obviously have an MBA.
Can you tell me who carries the cost of doing business in every other sector of the economy? If you said anyone other than “the consumer” you are WRONG! That’s why when minimum wage goes up, prices go up, when taxes go up, prices go up, when the price of raw materials go up, prices go up. It’s simple economics, the consumer pays for EVERYTHING.
The only “business” that pushes the costs onto anyone other than the consumer is the government. Hardworking Americans pay taxes so lazy good for nothing losers can live on foodstamps and welfare while they reproduce so we can pay for their kids too.
Don’t forget the leeches, the attorneys.
Leeches like mmagnolia could never survive if not for banks & insurance companies.
Your original post stopped when it said
“SEE ALSO DEFINITION FOR COMBINED RATIO. And you failed to post that definition.
I do not begrudge the insurance industry for making a living. I make 100% of my living from the insurance industry. What I do not like is the individual carriers like State Farm abusing their owners (insureds are the owners of the company in a MUTUAL COMPANY) when they have a claim. You continue to refuse to addres that State Farm is a MUTUAL COMPANY. They act as though they are a stock company.
The other thing I cannot tolerate is the GUARANTEED PROFIT the insurance companies have come to EXPECT in rate increases thru the commissioners.
This is a seriously uninformed comment. There was a study released a month or two ago that showed the rate of return on investment for insurance companies was well below many other industries. Does anyone have a link to this study to educate our friend?
Let me get this straight. The insurance carriers want to be able to exclude what they want when they want in their contract when it comes to wind and flood, but they are against adding the peril of wind to the national flood policy. Does that seem strange to you folks ? Why don’t they just offer the coverage for a price, and give the customer a chance to accept it or reject it. That way everyone knows from the beginning what their are getting.