Houston Trial Lawyer Blog : Houston Business Litigation Lawyer & Attorney : Arnold & Itkin Law Firm : Personal Injury, Wrongful Death, Accident Claims

The family of a little boy, who was seriously injured in a truck accident involving a driver fleeing from the police, won their fight with Nationwide Mutual Fire Insurance Company.

Last week, the Texas Supreme Court ruled that the insurer must pay the family's claim. Greg and Mirabel Tanner filed a lawsuit against Nationwide after their child was seriously injured in a truck accident as the driver fled from police. The truck accident left all 4 members of the Tanner family with injuries, but 7-year-old Roney sustained severe head, shoulder, and arm injuries. He remained in a coma-like state for many days.

His parents sued the truck driver, Richard Gibbons, and hoped his policy would cover the cost of Roney’s medical expenses. Nationwide, however, refused to pay out, claiming Gibbons violated the terms of his insurance policy when he led police on a high speed chase. At the time of the accident, he was traveling at 100 mph. An earlier jury ruled in the favor of the family, but the verdict was overturned by a judge and an appeals court.

At the core of the insurance dispute, was whether Gibbons' actions in fleeing from the police constituted an “intentional act”. An "intentional act" clause voids the policy, if the policy holder is found to have intentionally indulged in reckless behavior, causing an accident. Fortunately for the Tanners, Gibbons purchased his policy in Ohio, which has a much broader definition of "intentional act" than Texas, where the accident occurred.

In another fortunately turn of events for the Tanners, the Supreme Court sided with them. According to the ruling, Nationwide was unable to prove that Gibbons believed his reckless behavior was “substantially certain to cause Injury.”

Insurance Disputes

An insurance company can often make use of technicalities to avoid paying out policies. For many of these companies, the priority is to pay out as little as possible or delay a claim for as long as possible. That is why having an experienced insurance attorney on your side can mean the difference between losing out on what is rightfully yours and receiving the payout you deserve.

If an insurance company is holding out on payments that are rightfully yours, an insurance attorney can help you collect the money you deserve.

Contact an insurance attorney, at Arnold & Itkin LLP for a free evaluation of your case.

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State Farm Florida, which announced in January that it was dropping 1.2 million property insurance policy holders in the state, has asked the Florida Insurance Commission for a hearing to counter the commission’s conditions for allowing it to leave Florida.

In January, the insurer claimed it would no longer cover properties including renters, home owners, and contractors in the Sunshine State. In its petition to the Office of Insurance Regulation this week, the company included the main points of dispute between it and the state, including its certificate of authority, as well as its intention of dropping property policies that have the highest exposure to “potentially devastating hurricanes.” The Florida Insurance Commissioner's office, which last month rejected State Farm's request for a hearing, announced that it will make a decision about State Farm agents selling policies for other insurers and other points in the petition, within 15 days.

Some of State Farm's arguments against the state’s conditions are almost laughable. For instance, the company does not want its agents to directly sell policies for other insurers because that would dilute its reputation as a “reliable company”. With 1.2 million policy holders in Florida who now have to look for other insurers, State Farms "reliable" reputation is in tatters regardless.

State Farm's decision to leave the property insurance market in Florida has raised concerns among policy holders as the hurricane season draws near. The Florida legislature is now trying to lure back the company by introducing a bill that will allow large private insurers to sell residential property insurance with minimal state regulation. In doing so, law makers could actually be placing Florida policyholders at risk because deregulation of rates tends to lead to rate increases by companies.

By announcing that it is closing shop in Florida, State Farm has put policy holders in a bad situation. With hurricane season drawing closer, these policy holders have a choice between only the state-backed insurer, Citizens, or smaller private insurers who may not be able to pay out quickly in the event a hurricane. It is just another example of the kind of irresponsibility that many insurers display.

Insurance Lawsuits

Pursuing an insurance lawsuit against a big insurer can be a long and complex process. The insurance attorneys at Arnold & Itkin LLP have successfully represented clients in disputes against major insurers and helped them recover their claims.

If you are involved in an insurance dispute with an insurance company, contact an insurance attorney at Arnold & Itkin LLP for a free consultation.

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State Farm Mutual Automobile Insurance Co. has announced it will drop out of Florida's property insurance market. The company has already sent letters to roughly 1.2 million policyholders in the state, announcing its decision not to renew policies and to stop sales of new policies to Florida residents.

The decision comes after an administrative law judge refused the company permission to introduce a 47 percent increase in home owner policies. According to President Jim Thompson, the company has been faced with a steady drop in revenues as a result of the disastrous hurricane season from 2004 and 2005. That means policyholders in the state have to look for new insurers. The company will no longer cover home owners, renters, contractors or owners of condo units, this includes rentals and ownership condo units. The company plans to continue to offer auto insurance and other polices, but it looks like angry residents are in no mood to employ the company. In any case, Florida insurance laws do not allow companies to offer only auto insurance if they offer home as well as auto insurance in other states.

Florida's anger at State Farm has been building and spilling over into the legislature. Florida lawmakers, including Senator Mike Fasano, R-New Port Richey, have slammed the company for its actions. The legislator has confirmed that he plans to introduce a new bill in the Florida legislature, when it reconvenes in March, that would prevent State Farm from offering any other kind of insurance in the state, or "cherry picking" as he calls it.  State Farm still has to go through all the normal procedures before it can begin to refuse renewal of policies. Once the company's plan has been reviewed and approved, it must give policyholders notice of 180 days before it can begin refusing renewals or denying new policies.

Insurance Disputes

Close to 1.2 million policyholders in Florida are likely to be scrambling for alternative insurers when their State Farm policies are cancelled. The company insists that its revenues will not allow it to continue coverage, but it appears that its inability to wrangle a whopping 47 percent increase in home owner policy premiums has caused the company to punish home owners.

Often, policyholders are held at ransom by irresponsible insurance companies willing to let customer lives be shattered as long as their bottom lines remain healthy. Litigating claims against these large companies can be a long, complex process, requiring the expertise of an experienced insurance attorney.

If you have been refused or denied claims or have any other kind of dispute with your insurance company, contact an insurance attorney at Arnold & Itkin LLP for a free consultation.

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USAA files for an increase in homeowners insurance rates stating increased frequency in catastrophic events and, therefore, increased claims and construction costs necessitate a rate increase.

On October 10th, USAA proposed to increase homeowners insurance rates across Texas by an average of 7.6 percent. Stuart Parker, president of USAA Property and Casualty Insurance Group, told the Houston Chronicle that after lowering rates 5 times in the last 6 years, "increasing claims and construction costs, along with projected catastrophe losses require [them] to raise rates now so [they] can meet the future needs of [their] Texas membership." Harris County, a high-risk costal area, is expected to be hit hard by this with an average rate increase of 20.9 percent for more than 30,000 residents.

By Texas law, rates must be just, fair, reasonable, and adequate, cannot be excessive for the risks to which the rate applies and cannot be discriminatory. Rates are considered excessive if the rate is likely to produce a long-term profit that is unreasonably high in relation to the insurance coverage provided and discriminatory if they are not based on sound actuarial principles or do not bear a reasonable relationship to the expected loss.

Insurance Litigation

Insurance litigation against big insurance companies can be frustrating and intimidating. At Arnold & Itkin LLP, our attorneys have years of experience and expertise litigating successful insurance malpractice lawsuits against some of the biggest insurance companies in the nation.

If an insurance company has treated you or a loved one unfairly, contact a Houston insurance attorney at Arnold & Itkin LLP for a free consultation.

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Texas Farmers Insurance has been accused of unfair practices in a hurricane insurance claims lawsuit filed by a Jefferson County couple as a result of supposed unethical practices to deny claims.

John and Tammie Burden's home in Beaumont, Texas suffered extensive property damage during Hurricane Humberto on September 13, 2007. The destruction included structural damage as well as interior and roof damage caused by rain and flooding. The Burdens, like many other policy holders filed claims with their insurer, Texas Farmers Insurance. They were shocked when the insurer, after sending eight adjusters to assess the damage, told them the property damage was not included in their policy.

The Burdens have now filed a lawsuit alleging Texas Farmer Insurance committed a breach of contract in refusing to pay out the claim.  The lawsuit also names the 8 adjusters involved. As stated in the lawsuit, the company also failed to deny or affirm the claim within a reasonable period of time and failed to explain why the Burdens' claim was denied.

Insurance companies have continuously avoided, delayed, and denied claims payouts for years now, but this matter has recently received special attention, as several devastating hurricanes, including Katrina and Rita inflicted serious damage along the Gulf Coast. In the aftermath of Katrina, some of the country's biggest insurance companies were found to have indulged in unethical practices including: forcing desperate policy holders to settle for less than was agreed upon per the contract. However, Texas insurance laws favor the policyholder, protecting them from: misrepresentation of facts, breach of contract, aggressive practice, and unfair claims adjustments, among other things. Insurers are required to accept or deny claims within a stipulated period of time and, if they intend to deny a claim, must notify the policyholder of the reason for denying the claim. If the insurer is unable to determine whether a claim will be denied or approved they must inform the policyholder of their need for additional time. After the extension, the insurer is required to make a decision about the claim within 45 days.

Pursuing a Hurricane Insurance Claim

Pursuing hurricane insurance litigation requires the expertise of an insurance attorney who is experienced in taking on big name insurance companies. The attorneys at Arnold & Itkin LLP have years of expertise pursing claims against major insurance companies on behalf of policyholders. 

Contact a Texas insurance lawyer at Arnold & Itkin LLP for a free evaluation of your case.

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One month after Hurricane Ike cut a destructive swath through southeast Texas leaving more than an estimated $11 billion in insured damages, the impact of the storm is still apparent.  Here are some statistics as reported by the Houston Chronicle, from sources including FEMA, US Army Corps of Engineers, American Red Cross, and local government officials:

• Almost 688,000 households in 29 Hurricane Ike-stricken counties who have applied for state or federal assistance
• $186 million-plus Federal Emergency Management Agency funds approved for housing and other emergency needs
• $45 million is the sum expended by Houston chapter of the American Red Cross in Ike-related relief
• 36 deaths of Houston-Galveston area residents because of Hurricane Ike
• 134 names remaining on list of missing persons
• 14,650 CenterPoint Energy customers still without power, mostly in Galveston
• $30 million in Small Business Administration disaster loans
• 308 homes and buildings destroyed in Galveston

If you have been impacted by Hurricane Ike and you are experiencing difficulties getting a hurricane damage insurance claim settled fairly by your insurance company, you may be entitled to compensation. Don't be bullied by unfair insurance settlement practices. Get help from a qualified hurricane insurance claims lawyer today.

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Nearly a month after Hurricane Ike hit the Houston-Galveston area, most of the area's residents have returned to a nearly normal life.  But for many whose homes or business property were damaged by the storm, the stress and complications of dealing with unfair insurance practices are still taking their toll.  The Texas Business Lawyers of Arnold & Itkin LLP have published information to help business and homeowners understand their rights and options in the hurricane insurance claims process.

Texas law defines certain rights of the insured and duties and deadlines for the insurer. Read about Texas insurance laws and requirements for prompt payment of insurance claims, and about other duties and deadlines imposed on insurers at Arnold & Itkin LLP.

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