The former Secret Service Office (ISO) documents I mentioned in yesterday afternoon's, ISO internal documents are important regarding COVID disputes show some of the internal measures and the analysis of coverage and what to do about a coronavirus pandemic incident that led to the approval of virus exclusion. These were never given to the public when the pandemic was hit last year, and people asked about insurance coverage for lost business income. Instead, ISO, its executives, insurance experts and member insurance companies – including their lawyers who make arguments to prevent this disclosure – have had access to these previously secret documents. Importantly, they were not provided so that judges who decided these cases could consider them and determine whether they were relevant and significant to their decision.
The first insurance regulation that we all learn in this specialized business area. and law is that insurance involves public confidence. Insurance lawyers know that too. If the insurance companies all acted in good faith, they should have demanded that ISO send out all these documents for transparent analysis and consideration from the beginning. Honesty is the only policy. Right?
Not when you have to pay big bucks to argue for your insurance company customer against their customers. Only then does the temptation to secrecy consider fair trade.
Money and profit are won by insurance managers and their insurance advisers when it comes to fair trade with customers. Insurance agents could have requested that their lawyers and ISO make all of these internal documents available as a matter of good conduct. In fact, their own coverage investigation requires them to consider them.
I was thinking about this when I gave a speech in Atlanta yesterday. A former claims adjuster for a major insurance company was in the audience and said he was instructed to look at insurance numbers in two ways. The policy number was how he got paid. The claim number only showed how he was paid less.
These previously secret documents declaring coverage should not have been hidden if the insurance industry and its executives really look after the interests of their customers. This is another example that shows that insurance defenders often argue what they can to win, no matter what internal documents show. That is why disputes must require good faith. First-party infringement can occur where the insurance manager allows their lawyer to argue that what is contrary to what the insurance company internally admits is not correct.
We can not let insurance lawyers argue based on coverage that their clients own internal manuals. and documents show that it exists. This madness is what leads to ISO having to change an earlier form of business income with regard to the requirement for a total suspension of operations ̵
These show how coverage arguments can be made for loss of business interruptions from COVID losses. Whether they will be relevant and important to win the goals and the controversy remains to be seen. But at least these documents are starting to see the light of day so that we know the whole story of virus exclusion.
Thought for the day
Some secrets are meant to be taken to the grave, and that's what I plan to do with all mine. They are not necessarily my secrets to tell. I'm the gatekeeper for others' secrets.