After today's multi-million $ ruling against State Farm, will adjectives home insurance companies travel their rates?
http://news.yahoo.com/s/ap/20070111/ap_o…
Answers:
No. Statefarm will probably lower their rates in an attempt to gather new business. Believe it or not all of the top insurance companies are necessarily live in court. they spend an enormous amount of money on court decision, appeals, and defenses.
No. All rate increases must be approved by state insurance boards. What you WILL see is every focal insurance company in America completely pull-out of Florida, California and the gulf coast which will leave thousands and thousands of homeowners to buy insurance through state run 'pool' type of coverage. Twice the cost and the horror of have to deal with a state appointed adjuster after a disaster strikes. No company can be expected to stay within business as long as a lawyer can convince a group of jurors to completely ignore the language of a written policy and award billions of dollars to people with complete disregard and total disregard for the rule of law. Look for minimum 5K deductibles to be the norm in the hard by future.
Actually they will not have to. A very tiny codicil on today's ruling be that since hurricanes and floods are "acts of God," insurance companies may sue for damages from "God or his representatives." As such, churches throughout the United States may expect to see summons and the inside of many a courtroom.
About time, say I! Looks like tort action to me: duty of strictness, failure of that duty, and then injury.
maybe but more likely it will freshly make homeowners coverage harder to come by. you know i really feel for adjectives of the Katrina victims with what they've been thru and adjectives but the truth of the matter is the law suits are a bearing for these folks to vent their frustrations--financial and otherwise--against big targets since they really can't sue the federal government for its gross incompetence down nearby. individually there may be financial winners probably most of adjectives their lawyers but in the big picture we adjectives will lose. there is no way these damages--in this focused case i believe all that be left of the house was the concrete slab--were cause by wind. the insurance companies don't insure for flood and premiums were never collected to repay for flood damages--that's the business of the federal flood insurance program. i have to say i really can't be aware of too sorry for the folks living in these areas who didn't buy flood insurance. in the current climate down in attendance particularly after this ruling i suppose the big insurance companies will just own to buy their way out--yes with $$ that be never intended to pay for such claims--and then probably not want to come posterior. can't say i would blame them.
No. First of all, State Farm would be crazy not to appeal. I'm not necessarily on the side of insurers, but I reflect on this decision is blatently incorrect; I anticipate State Farm will win on appeal. From the article alone, I can see three issues from which the appeal can be made.
As for this decision cause all insurers to raise rates, I wouldn't anticipate it will. This edict is only relevent to the case presented to the court. This couple argued nearby was a tornado that mysteriously appeared during Hurricane Katrina that carried their house away (although they offered no evidence of this). I don't think adjectives Hurricane Katrina victims can claim this, although many probably wish they could! Source(s): 9+ years insurance decree experience
Darned straight they will!! They'll also change policy wording to eliminate more coverage.
I'm in fact expecting some insures to flat out pull out of the high peril states - TX, FL, LA, etc. Which would really stink for me, because 1. I'm in Texas and 2. my homeowners is with State Farm.
State Farm is NOT going to lower homeowners rates. Homeowners policies are the current "loss leader" of the insurance world - companies aren't making money at it NOW, they surely don't want MORE of it!! They'll focus more on retirement & energy savings, which AREN'T so geographically challenging.
I agree SF will appeal, and that this judgement will probably eventually be overturned . . . but meanwhile, SF is spending MILLIONS On attorney fees, and a bunch more associates are going to file suit. All those attorney fees come from somewhere!! That would be, oh, yeah, our premium dollars. Source(s): agent, 20+ years
Related Questions:
Answers:
No. Statefarm will probably lower their rates in an attempt to gather new business. Believe it or not all of the top insurance companies are necessarily live in court. they spend an enormous amount of money on court decision, appeals, and defenses.
No. All rate increases must be approved by state insurance boards. What you WILL see is every focal insurance company in America completely pull-out of Florida, California and the gulf coast which will leave thousands and thousands of homeowners to buy insurance through state run 'pool' type of coverage. Twice the cost and the horror of have to deal with a state appointed adjuster after a disaster strikes. No company can be expected to stay within business as long as a lawyer can convince a group of jurors to completely ignore the language of a written policy and award billions of dollars to people with complete disregard and total disregard for the rule of law. Look for minimum 5K deductibles to be the norm in the hard by future.
Actually they will not have to. A very tiny codicil on today's ruling be that since hurricanes and floods are "acts of God," insurance companies may sue for damages from "God or his representatives." As such, churches throughout the United States may expect to see summons and the inside of many a courtroom.
About time, say I! Looks like tort action to me: duty of strictness, failure of that duty, and then injury.
maybe but more likely it will freshly make homeowners coverage harder to come by. you know i really feel for adjectives of the Katrina victims with what they've been thru and adjectives but the truth of the matter is the law suits are a bearing for these folks to vent their frustrations--financial and otherwise--against big targets since they really can't sue the federal government for its gross incompetence down nearby. individually there may be financial winners probably most of adjectives their lawyers but in the big picture we adjectives will lose. there is no way these damages--in this focused case i believe all that be left of the house was the concrete slab--were cause by wind. the insurance companies don't insure for flood and premiums were never collected to repay for flood damages--that's the business of the federal flood insurance program. i have to say i really can't be aware of too sorry for the folks living in these areas who didn't buy flood insurance. in the current climate down in attendance particularly after this ruling i suppose the big insurance companies will just own to buy their way out--yes with $$ that be never intended to pay for such claims--and then probably not want to come posterior. can't say i would blame them.
No. First of all, State Farm would be crazy not to appeal. I'm not necessarily on the side of insurers, but I reflect on this decision is blatently incorrect; I anticipate State Farm will win on appeal. From the article alone, I can see three issues from which the appeal can be made.
As for this decision cause all insurers to raise rates, I wouldn't anticipate it will. This edict is only relevent to the case presented to the court. This couple argued nearby was a tornado that mysteriously appeared during Hurricane Katrina that carried their house away (although they offered no evidence of this). I don't think adjectives Hurricane Katrina victims can claim this, although many probably wish they could! Source(s): 9+ years insurance decree experience
Darned straight they will!! They'll also change policy wording to eliminate more coverage.
I'm in fact expecting some insures to flat out pull out of the high peril states - TX, FL, LA, etc. Which would really stink for me, because 1. I'm in Texas and 2. my homeowners is with State Farm.
State Farm is NOT going to lower homeowners rates. Homeowners policies are the current "loss leader" of the insurance world - companies aren't making money at it NOW, they surely don't want MORE of it!! They'll focus more on retirement & energy savings, which AREN'T so geographically challenging.
I agree SF will appeal, and that this judgement will probably eventually be overturned . . . but meanwhile, SF is spending MILLIONS On attorney fees, and a bunch more associates are going to file suit. All those attorney fees come from somewhere!! That would be, oh, yeah, our premium dollars. Source(s): agent, 20+ years
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