November 2010 Case Law Summary
Here is a brief summary of some recent insurance-related decisions from November 2010:
Insurer Off the Hook in Chinese Drywall Case
A complicated Florida case involving homeowners, developers, a commercial general liability insurance company and Chinese drywall has hit another road block. The homeowners and developers had filed a complaint earlier this year, alleging the insurance company denied their claim in bad faith. The court ruled against them. In the present case, the court has told them that the insurance company should not cover the claim at all. Just two months after they moved into their […]
Ver Ploeg & Marino in the News
Attorneys at Ver Ploeg & Marino, P.A., have been involved in the following high-profile cases, which were covered by the Law360 news service (http://www.law360.com):
Quiet Hurricane Season Keeps Insurance Losses ‘In Line’
The world’s second-largest reinsurance company announced this week that natural catastrophe losses rose from $22.7 billion in 2009 to $31 billion in the first 11 months of 2010. Man-made disasters — notably British Petroleum’s Deepwater Horizon oil rig explosion and the ensuing oil spill — have spurred about $5 billion in claims. Florida residents will not be surprised to hear that hurricane losses this year have been relatively low, resulting in a less egregious increase in insurance losses than initially expected.
Long-term Care Insurance – Crisis in the Making?
When people talk about soaring insurance rates, they’re usually talking about health insurance or – particularly in Florida – property insurance. Another type of coverage has found its way onto the list lately: long-term care insurance.
Where the Money Goes: Off-shore Reinsurance, Part 5
The last post in this series.
Where the Money Goes: Off-shore Reinsurance, Part 4
A Florida newspaper’s report about the reinsurance market pointed out the enormous profits made by the off-shore companies — profits that could be, but aren’t, reinvested in the state. It doesn’t look as if the trend among Florida insurance companies of relying so heavily on these reinsurers is on the downswing, either. And, apart from the companies’ lack of commitment to the state and her residents, there’s something distasteful about the way reinsurers root for catastrophes.
Where the Money Goes: Off-shore Reinsurance, Part 3
We’re not quite done with our discussion of the reinsurance market in Florida. A recent news report brought to light the facts and the issues associated with reinsurance arrangements Florida insurance companies have taken on since the 2005 hurricane season. Homeowner insurance premiums have increased, but the money insurance companies rake in isn’t staying in the state. It’s going to off-shore investors, who run shell companies here while they track hurricanes from afar.
Where the Money Goes: Off-shore Reinsurance, Part 2
In our last post, we talked about Florida’s homeowner insurance market and a newspaper investigation into the industry’s growing reliance on off-shore reinsurance companies. The issue is a sensitive one for Floridians, given the multiple rate hikes over the past few years. The news report links the shift from “traditional” insurance companies to Hurricane Katrina.
Where the Money Goes: Florida’s Stake in Off-shore Reinsurance Cos.
Florida residents know all too well that homeowners insurance premiums have gone up over the past few years. According to quarterly premium reports, the average Florida homeowner’s rate has jumped 72 percent since 2003. Regulators have approved rates approaching $8,000 on a $100,000 Palm Beach home. In the Florida Keys, the same home would cost $13,000 a year to insure.
