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Home / Insurance / Jon Held, Steve Badger and Chip Merlin Discuss the Hottest Evaluation Trends and Controversies at the Windstorm Conference | Legal insurance blog for property insurance

Jon Held, Steve Badger and Chip Merlin Discuss the Hottest Evaluation Trends and Controversies at the Windstorm Conference | Legal insurance blog for property insurance



Dogs and cats harmoniously together? It happens at the Windstorm Insurance Conference where representatives of insurance companies and policyholders analyze trends for property insurance claims. Jonathan Held, Steve Badger and I will present and analyze some of the most groundbreaking issues regarding property insurance disputes. This year's conference will be held practically 1-4 February. The live conference will be held May 24-26.

Windstorm Network was founded mainly by Janet Brown over twenty years ago. Today, the Windstorm Conference is one of the largest participating educational events for those interested in damages issues related to windstorm claims. A Brief History of the Windstorm Conference Partly Indicates:

It Began with a Simple Idea

Windstorm Insurance Network, Inc. (WIND) was officially formed on the day Hurricane Floyd hit the North Carolina coast: September 1

6, 1999. was a suitable start date for a training association created for professionals in real estate and wind storm insurance.

Although many hurricanes have been blowing since 1999, one thing has remained constant:

WIND is the only member association to gather both defense and policyholder staff to connect, engage and learn about important topics in the real estate / wind storm insurance industry .

& # 39; The idea for WIND was born out of a casual conversation with our company's chief partner, Rick Boehm, says Janet L. Brown, partner of Boehm Brown Harwood, PA, an insurance company in Orlando.

“Rick was curious why we were constantly sending a ttorneys out of state for conferences on real estate issues and catastrophic losses. He asked why we did not have something similar in Florida, Janet recalls.

“Finally, he asked me to explore the idea of ​​an association focusing on the education and training of non-life insurance professionals. The goal was to be balanced with participation from both the insurance industry and the policyholder side, says Janet.

One case that will be analyzed by us at the virtual conference is this week's holding in State Farm Florida Insurance Company vs. Parrish . 1 When considering what an "uninterested assessor" would be, the Board of Appeal noted that:

Mr. Keys, as president of Mr. Parrish's public adjustment company, "has an interest in getting the highest possible recovery because [his] the compensation will be a percentage of it." . . The KCC's 10% share of the amount allocated in the evaluation process necessarily makes its president interested in the outcome of the process. For that reason alone, he is not an "uninterested assessor." We are not the first court to reach that conclusion. . . . When an appraiser has a direct financial interest in the evaluation result, the appraiser is not uninterested. "

A contingency model for payment is uniquely problematic under this provision because the valuation allowance is inextricably linked to the amount that the prize winner will ultimately recommend. The bigger the award, the bigger the payment. It is the link between payment and allocation that makes the contingency fee evaluator uninterested in the outcome of the evaluation process, which is a condition that the policy explicitly prohibits.

In addition to the interest shown by KCC and Mr. Through the KCC's ten percent share in the appraisal price, there is also the separate, broader and obviously obvious interest they have in the appraisal process due to the fact that the KCC represents Parrish in the underlying dispute. Although KCC is not, as Mr. Parrish emphasizes, his & # 39; manager & # 39; or his & # 39; agent & # 39; (which we do not have to decide), the KCC is contractually bound to negotiate with State Farm on behalf of Parrish. And as Mr. Parrish's public adjuster is KCC's adjuster professionally bound to handle Parrish's assertion "with expediency and due diligence" and not "approach investigations, adjustments and settlements in a manner that harms the insured." See Fla. Admin. Code 69B-220-201 …

In addition to nominating Mr Parrish himself (or a family member), it would be difficult to imagine a more obviously interested person in an evaluation process than the person or company representing Mr Parrish in particular. that process, especially since the "disinterested appraiser" of the policy essentially acts as an independent judge in a dispute.

The holding was not surprising in view of the above discussion:

We consider that a public adjuster who has a contingency interest in an insured's evaluation premium or represents an insured in an evaluation process is not an "uninterested valuer" under this insurance policy.

For a much better and insightful discussion on valuation issues like this, do not miss the presentation, The Changing Appraisal Landscape – What are the Top Trends? as Jonathan Held, Steve Badger and yours really will do at the Virtual Windstorm Insurance Conference on February 1st. Here is a link for you to register.

I will also discuss this matter today at 2 pm EST at our Friday Forum where we briefly discuss highlights about the key development in property insurance for the week. Here is our link for today's Friday Forum .

Thought for the day

I'm fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.
—Winston Churchill
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1 State Farm Florida Ins. Co. vs. Parrish No. 2D19-130 (Fla. 2d DCA January 6, 2021).


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