Overhead and profit cases and discussions are one of the hottest topics in real estate insurance law. Insurance companies are fighting with each other to push for the interface that degrades traditionally paid benefits and delays payments to their customers. A case last week by the Pennsylvania Supreme Court allows "open season" for Pennsylvania policyholders. 1
I was thinking of some other titles that would be equally suitable for this post:
- Farmers Sells Bad and Inferior Home Insurance Insurance in Pennsylvania – Do Not Be Deceived by Talking to an Agricultural Insurance Agent
- There are Pennsylvania insurance regulators in the pocket of the insurance industry?
- A standard All risk insurance policy is needed for the same reason as a standard fire Insurance policy was required over 1
The holding of the case enables Farmers Insurance, according to its insurance terms, not to pay the general expenses and profits of general contractors until the policyholder first pays it. Since there is no Pennsylvania law or statutory law that prevents this – and the Pennsylvania insurance authorities did not prevent it from being approved – the court said the terms of the agreement apply. The cheap Farmers Insurance wins and the insurance customers lose.
The rest of the insurance industry does not leave this either. Insurance companies belong to organizations that submitted amic panties that support farmers against their own customer. In fact, the worst example of this is mutual insurance companies submitting letters to customers who are their own members and theoretical owners.
Where does the insurance industry CPCU talk about this? Where do the leaders of the insurance coverage discuss this change? Why do the regulators not regulate?
The biggest question is whether we need states to prescribe a standard all risk aka open risk insurance for the same reasons we had a standard minimum fire policy.
Join me at 2 o'clock today as we review this case and its consequences.
Thought for the day
Sometimes I think the playing field really is not even. You know, it just is not.
1 Kurach v. Truck Ins. Börs No. 12 EAP 2019, 2020 WL 4760092 (Penn. 18 August 2020).