Dallas Fort Worth Insurance Lawyer Blog

National Flood Insurance Program And Limitations

July 7, 2019 | Mark S. Humphreys

Lawyers who handle National Flood Insurance Program claims, otherwise known as the National Flood Insurance Act of 1968 (NFIA) need to understand the difference between NFIA claims and other insurance claims. One of the big differences is the shortened statute of limitations that applies to NFIA claims.

This is illustrated in a U.S. Fifth Circuit Court of Appeals opinion styled, Al Cohen v. Allstate Insurance Company; Rachael G. Ray.

NFIA was created to make flood insurance available on reasonable terms and to reduce fiscal pressure on federal flood relief efforts. NFIA established the National Flood Insurance Program (NFIP) , which allows private insurance companies such as Allstate, to issue insurance policies on behalf of the federal government. These companies are called Write Your Own (WYO) carriers.

Texas Insurance Code, Section 542A.006

July 6, 2019 | Mark S. Humphreys

The Texas Insurance Code, Section 542A, became the law in Texas in September 2017. The cases involving this law are working their way through the Court system. This law was recently discussed in a U.S. Southern District, Houston Division opinion styled, Greatland Investment, Inc., a/b/a Southwest Plaza v. Mt. Hawley Insurance Company and Kevin Wilson Mayfield.

Greatland had property insurance with Mt. Hawley when it’s property was damaged in a storm. Greatland assigned Mayfield to inspect and adjust the claim. Mayfield found the claim did not fall within Greatland’s policy and Mt. Hawley refused to pay the claim.

On December 3, 2018, Greatland sent a demand letter to Mt. Hawley stating its intent to sue Mt. Hawley and Mayfield and others. On January 15, 2019, Mt. Hawley responded and notified Greatland that Mt. Hawley was electing to accept liability for all its employees and the adjuster pursuant Texas Insurance Code, Section 542A.006. On March 1, 2019, Greatland sued Mt. Hawley and Mayfield in Texas state court for breach of contract and Texas Insurance Code violations.

Insurance Company Accepting Responsibility For Adjuster

July 3, 2019 | Mark S. Humphreys

Most Insurance Lawyers are by now, aware of the new insurance law that went into effect in Texas as of September 2017. This new law is found in the Texas Insurance Code, Section 542A.006(a)-(c). The law law allows an insurance company to accept liability to for an adjuster.

This new law was at issue in the Southern District of Texas, Houston Division opinion styled, Sucheta Vyas and Davis Vyas v. Atain Specialty Insurance Company and Team One Claims.

The Vyas’ had insurance with Atain. The Vyas allegedly suffered storm related damage to property they owed, and made a claim with Atain. Atain hired Team One to adjust the claim. The Vyas sued Atain and Team One in State District Court alleging that Team One’s unreasonable investigation led to the wrongful underpayment and or denial of their claim.

Claims – Segregating Damages

June 30, 2019 | Mark S. Humphreys

For Insurance Attorneys, here is a case that is important to know and understand. The case is from the Western District of Texas, San Antonio Division. It deals with segregation of damages when required under an insurance policy. The case is styled, Mark Sadovsky v. Nationwide Property and Casualty Insurance Company.

Sadovsky had a home owners policy with Nationwide on April 12, 2016, when he suffered alleged hail and wind storm damage to his home. On April 20, 2016, he submitted a claim and Nationwide eventually paid the claim and closed the claim.

In the spring of 2017, Sadovsky noticed several neighbors having their roofs repaired. A neighbors contractor inspected the roof and informed Sadovsky of unrepaired hail damage and informed Sadovsky that the costs of repair would be $68,372.89.

Prompt Notice To Insurance Company Of Claim

June 29, 2019 | Mark S. Humphreys

Insurance attorneys know that a requirement of most insurance policies is that an insured give prompt notice to their insurance company of any claim. This is illustrated in a recent Western District of Texas, San Antonio Division opinion styled, Mark Sadovshy v. Nationwide Property and Casualty Insurance Company.

This lawsuit arises out of a hail and wind damage claim filed by Sadovshy against Nationwide. Sadovsky sued Nationwide for violations of the Texas Insurance Code and Breach of Contract. This case is being decided now on a Motion For Summary Judgment filed by Nationwide.

Nationwide claims it is entitled to summary judgment because Sadovsky failed to perform under the insurance contract by timely notifying Nationwide of his claim for damages.

Timely Naming A Defendant In Federal Court

June 26, 2019 | Mark S. Humphreys

When insurance lawyers know of a defendant who could be named in a lawsuit, they need to sue that defendant immediately. Waiting until after a non-diverse defendant has removed the case to Federal Court may be waiting too long. This is illustrated in the Southern District of Texas, Houston Division, opinion styled, Ali Duhaly v. The Cincinnati Insurance Company.

Duhaly sued Cincinnati in State Court alleging Cincinnati was liable for injuries incurred in a car wreck with Broderick Williams. But, in the lawsuit Duhaly did not sue Williams until after the case was removed to Federal Court. Cincinnati alleges the attempt to sue Williams after removal is only an attempt to defeat diversity jurisdiction.

Federal Rule of Civil Procedure 15(a) states that the court should freely give leave to amend when justice so requires. But this is not automatic. The Fifth Circuit has said that when a party seeks to amend to add a new, non-diverse party, the amendment should be closely scrutinized.

Negligent Misrepresentation

June 23, 2019 | Mark S. Humphreys

Here is a case where the insured’s are claiming the agent misrepresented a policy. The style of the case is Frederic Muratore and Lillian Muratore v. Texas Farmers Insurance Company, and McKenzie Shoaf. The case is from the Southern District of Texas, Houston Division.

The Muratore had purchased flood insurance from Farmers as was required by their mortgage lender. When the mortgage was paid off they asked their agent, Shoaf, to get them a less expensive flood insurance policy and coverage with at least $265,000. The agent represented he did as requested.

The Muratore’s home was damaged in Hurricane Harvey and a claim was made to Farmers. At this time, the Muratore’s learned the flood policy they got from Shoaf only provided up to $400 of coverage.

Life Insurance And Interpleader Action

June 22, 2019 | Mark S. Humphreys

Life insurance lawyers will get calls from people who may or may not be entitled to life insurance proceeds after someone has died. In these situations, that being situations where more than one person is making a claim for life insurance benefits, the insurance company will usually file a lawsuit against the claimants. In the lawsuit the insurance company will inform the Court that a person has died, that the life insurance company is unsure who the correct person is to receive the life insurance proceeds, and then asks the Court to make the determination and to allow the insurance company to get out of the lawsuit while the people contesting for the insurance benefits remain in the lawsuit. This is called an Inter-Pleader Action.

This was situation in a lawsuit in the U.S. Southern District of Texas, Houston Division, recently. The case is styled, Colonial Life & Accident Insurance Company v. Aletha Burke Wade, Serbrina Wade, Lekisha Wade, and Frank Hollingsworth.

Kendrick Wade purchased a Life Policy in 2012 and designated his mother, Helen Wade, as beneficiary. In 2014, Kendrick purchased an Accidental Death Policy designating his sisters, Lekisha and Serbrina, as co-equal beneficiaries. Kendrick married Aletha Wade in 2015 and never amended the policies to name her as a beneficiary. Kendrick was killed in December 2017. Helen pre-deceased Kendric and the terms of the Life Policy made Kendrick’s estate the primary beneficiary.

Press Release # 13

June 20, 2019 | Mark S. Humphreys

There are lots of difficult cases insurance lawyers will see, but here is one that is hard to too.

Mark Humphreys, P.C., announces the settlement of a life insurance case wherein the beneficiaries claim for benefits was declined due to the assertion by the insurance company that the insured intentionally lied on his application for life insurance.

The insured, at the time of applying for life insurance, had been diagnosed with diabetes. The diabetes had become so severe that he had a partial leg amputation by the time the life insurance was purchased.

Fraud Allegations Against The Adjuster

June 19, 2019 | Mark S. Humphreys

Experienced Insurance Lawyers understand that insurance companies want to litigate cases in Federal Court and that the insurance companies will use any method they can to have the case in Federal Court.

A recent case from the Western District of Texas, Austin Division, which is styled, Davis v. Travelers Lloyds of Texas Ins. Co., issued an opinion denying Travelers efforts to litigate in Federal Court.

Davis filed suit in State Court alleging that he had a homeowners policy with Travelers insuring his residence and after sustaining water damage to his home, he filed a claim under the policy. The adjuster assigned to the claim by Travelers was Rick Limer.