Readers of Insurance coverage Journal had been drawn to South Central headlines detailing the complexities dealing with the insurance coverage trade, from authorized and regulatory points to the evolving panorama of cyber threats and pure disasters.
Different in style subjects embody insurance coverage fraud and unscrupulous legal professionals and contractors.
High 10 Insurance coverage Journal South Central Tales of 2024
Houston ‘Hire A Dick’ Attorney Faces Another Six Figure Sanctions Order
Houston plaintiffs’ lawyer Eric B. Dick was ordered in January to reimburse an insurer over $100,000 for the second time in three months. A Galveston County choose discovered {that a} lawsuit Dick filed in opposition to Normal Casualty Co. was “frivolous, groundless, and made solely for the aim of harassment” on account of an absence of proof. This follows an analogous sanction in Harris County for a lawsuit in opposition to the identical insurer. Each courts criticized Dick’s apply of designating skilled witnesses with out correct investigation or retention. Dick has a historical past of aggressive litigation ways and has confronted accusations of marketing campaign finance violations.
Louisiana Insurance Producer Arrested for Fraud, Theft
Louisiana State Police arrested Albert Frederick Peterson III, a Baton Rouge insurance coverage producer, for insurance coverage fraud and theft. An investigation revealed that Peterson fraudulently obtained and misappropriated over $30,000 in premiums and insurance coverage refunds supposed for members of the Baton Rouge Police Union between 2019 and 2021. Peterson was arrested on March 18, 2024, and booked into the East Baton Rouge Parish Jail.
Southwest Wins Appeal in Cyber Excess Coverage Dispute With Liberty
The fifth U.S. Circuit Court docket of Appeals dominated that Southwest Airways can proceed to hunt reimbursement from Liberty Mutual for prices incurred throughout a 2016 laptop failure. The court docket disagreed with the decrease court docket’s ruling that Southwest’s prices had been discretionary and never lined by the insurance coverage coverage. The case centered on an enormous laptop failure that disrupted Southwest’s flight schedule for 3 days in 2016. Southwest incurred important losses, together with prices for buyer reimbursements, journey vouchers, and promoting. Liberty Mutual denied Southwest’s declare, arguing that these prices weren’t lined by the insurance coverage coverage.
The appeals court docket discovered that the district court docket erred in concluding that Southwest’s prices had been solely discretionary. The court docket said that these prices could also be recoverable in the event that they had been incurred to mitigate the impression of the pc failure. Nevertheless, the court docket emphasised that Southwest would wish to display that these prices had been essential and didn’t put the airline in a greater place than it will have been with out the interruption.
The case was remanded again to the district court docket for additional proceedings in keeping with the appeals court docket’s ruling.
Louisiana Contractor Charged for Allegedly Damaging Homeowners’ Roof
This story particulars a case the place a roofing contractor, Zechariah Moore, allegedly defrauded householders by deliberately damaging their roof after which falsely claiming the harm was brought on by wind, in an effort to file an insurance coverage declare. After inspecting the roof, Moore introduced the householders with a expensive restore estimate and inspired them to file an insurance coverage declare, promising that their out-of-pocket prices can be minimal. Nevertheless, a subsequent inspection by one other contractor revealed the harm to be artifical. Moore was arrested and charged with felony harm to property with intent to defraud. The Louisiana Division of Insurance coverage issued a stop and desist order in opposition to Moore and his firm, highlighting the detrimental impression of such fraudulent actions on householders and the insurance coverage market.
Stray Dogs Cause Over $350,000 in Damages at Houston Car Dealership
Two stray canines had been captured after inflicting over $350,000 in harm to autos at a Houston automobile dealership. Surveillance footage confirmed the canines scratching paint and tearing bumpers off the automobiles, possible whereas chasing stray cats. The dealership contacted animal management, and each canines at the moment are of their care. The primary canine has been deemed adoptable, whereas the second remains to be being evaluated. This incident follows an analogous case in Italy the place a canine with gum illness was discovered to be liable for damaging a number of parked automobiles.
Oklahoma Manufacturer Sued for Firing Employees Over COVID Vaccine Exemptions
The U.S. Equal Employment Alternative Fee (EEOC) filed a lawsuit in opposition to AG Gear Firm, an Oklahoma-based producer, alleging that the corporate violated federal legislation by firing 10 workers who refused to obtain a COVID-19 vaccination on account of spiritual beliefs or medical restrictions. Regardless of receiving requests for spiritual and medical exemptions, the corporate mandated vaccinations with out contemplating any exceptions and terminated the ten workers, together with 77 others who had been unvaccinated. This alleged conduct violates Title VII of the Civil Rights Act of 1964 and the Individuals with Disabilities Act, which prohibit discrimination primarily based on faith and incapacity.
Houston Windstorm Causes Preliminary Economic Loss of $5-7B: AccuWeather
A robust windstorm that swept via southeast Texas in Could brought about widespread harm, leaving no less than seven individuals useless and lots of of hundreds with out energy. The storm, characterised by straight-line winds exceeding 80 mph, brought about important harm to houses, companies, and infrastructure within the Houston space. Preliminary estimates by AccuWeather counsel the entire financial impression of the storm may attain $5-7 billion, together with each insured and uninsured losses. The harm was so extreme that AccuWeather likened the occasion to a short “mini-hurricane,” emphasizing its historic significance as one of the vital damaging non-hurricane storms in Houston’s historical past.
Louisiana Lawmakers Pass Auto Insurance Reform Bills to Boost Market Competition
Louisiana lawmakers handed auto insurance coverage reform payments aimed toward enhancing market competitors and decreasing extreme payouts. These payments, supported by Insurance coverage Commissioner Tim Temple, embody provisions like limiting direct motion lawsuits, capping damages to precise medical bills, implementing a proposal of judgment rule, and establishing a prescription interval for property harm claims. These reforms are anticipated to make Louisiana a extra enticing marketplace for insurance coverage firms by decreasing the chance of expensive litigation, in the end enhancing the supply and affordability of auto insurance coverage for residents.
Wife of Ex-Texas Trucking Magnate Sentenced in $9M Work Comp Fraud Scheme
Frances Corridor, the spouse of a former San Antonio trucking magnate, was sentenced in July for her involvement in a multi-million-dollar fraud scheme. Corridor, a former co-owner of Invoice Corridor Jr. Trucking, manipulated payroll info to keep away from paying $9 million in employees’ compensation premiums to Texas Mutual Insurance coverage Firm. This deception concerned underreporting payroll and concealing essential monetary paperwork to acquire decrease insurance coverage charges for his or her gravel hauling enterprise. Corridor entered a plea settlement in Could, leading to a 10-year deferred adjudication sentence. As a part of the settlement, she is required to pay $150,000 in restitution and endure therapy beneficial by the probation division.
Texas Supreme Court Rules to Cut Out Attorney’s Fees in First-Party Appraisals
The Texas Supreme Court docket dominated that insurance coverage firms are usually not responsible for lawyer’s charges in weather-related property circumstances in the event that they absolutely pay the appraisal award plus any statutory curiosity. This ruling stems from a dispute between a house owner and Safeco Insurance coverage, the place the home-owner sued after receiving a cost however sought extra funds. The court docket discovered that because the insurer fulfilled its obligations beneath the coverage, no cash judgment was awarded to the home-owner, making lawyer’s charges unavailable beneath state legislation. Whereas insurance coverage protection attorneys praised the ruling, arguing it discourages the usage of appraisal as a litigation tactic, policyholder attorneys expressed considerations about potential unfair practices by insurance coverage firms and known as for legislative motion to handle the difficulty.
Right here’s a video discussing the highest 10 South Central articles, produced by Wells Media Group editors and our new-media staff.
