Complete Idiocy... and Heartlessness

There are times the insurance industry lives up to its less than stellar reputation. Great American Insurance put on an exceptionally brilliant performance.

There was a fire in an office building (set by an incredibly, mind-bogglingly stupid person, but that's a whole 'nother story). Three people died from smoke inhalation. Great American denied the liability claim stating that there was a pollution exclusion in the liability policy.

I am well aware of this exclusion. Denying a claim because victims of a malicious fire had the audacity to suffocate to death rather than be burnt is NOT THE INTENDED PURPOSE OF THIS EXCLUSION!!!!!!!

I cannot believe 2 facts in this case.

1. Great American following this ridiculous path
2. The IDIOT judge who endorsed it

The case has been dropped, which is good. However, the families of the victims absolutely should NOT have had to go through this.

Here's an article summarizing the case: http://www.businessinsurance.com/cgi-bin/news.pl?id=14845

There may very well be excellent grounds for denying the claim. I am not informed of all the particulars. However, the pollution exclusion is NOT IT.

Update: I've been asking around, and I am not alone in my assessment. Basically, the entire insurance industry is in an uproar over this idiocy. It threatens time-tested contractual language and has royally ticked off the Texas Department of Insurance. And, it has messed up one of my major projects at work. I am still so angry about this. Something about watching people in my professional area behave like unethical raging morons really gets to me.

I know it's a few days late, but... YIPPEEEEEEE!!!!!!!

Yes, I'm an insurance geek. Yes, I'm thrilled that hurricane season is over!!!!!!!

Please feel free to laugh at me.

482
ABNT20 KNHC 010302
TWOAT
TROPICAL WEATHER OUTLOOK
NWS TPC/NATIONAL HURRICANE CENTER MIAMI FL
1030 PM EST FRI NOV 30 2007

FOR THE NORTH ATLANTIC...CARIBBEAN SEA AND THE GULF OF MEXICO...AS THE 2007 ATLANTIC HURRICANE SEASON APPROACHES ITS CONCLUSION...TROPICAL CYCLONE FORMATION IS NOT EXPECTED DURING THE NEXT 48HOURS.

ISSUANCE OF THIS PRODUCT WILL RESUME ON 1 JUNE 2008. SHOULD ANYSIGNIFICANT DISTURBANCES DEVELOP DURING THE OFF SEASON...SPECIALTROPICAL DISTURBANCE STATEMENTS WOULD BE ISSUED...AS NEEDED. SPECIAL TROPICAL DISTURBANCE STATEMENTS CAN BE FOUND UNDER WMOHEADER WONT41 KNHC...AND UNDER AWIPS HEADER MIADSAAT.

$$

FORECASTER FRANKLIN

Can't look away

In addition to my daily check on the tropical storm situation in the Atlantic, I'm now checking in on the wildfire situation in California.

Professional interest has me keeping an eye out for developing hurricanes (none predicted at this time, thank goodness) due to the nature of my job. When Texas gets hit by a hurricane, my employer goes into 'crazy' mode trying to assess claims and check on policyholders. Fortunately, Erin petered out and Humberto really didn't do much damage. We've still got a ways to go until the end of hurricane season, though.

Personal and professional interest has me voraciously reading news reports of the California fires. Hopefully, policyholders have appropriate limits on their homeowner policies. Between the damage caused in 2003 and the resulting increase in the cost of building supplies, I really hope insurers are on the ball and have raised limits appropriately. It would be terrible to lose everything in a fire only to discover that you are under-insured and can only rebuild half your house...

I did read one commentary that rubbed me entirely the wrong way. Well, one sentence: 'And while insurance companies appear financially well-positioned to cover losses, they’re increasingly pressing homeowners to reduce fire risk and increase coverage.' Ummm, in order for an insurance company to be financially well-positioned to cover massive losses, the policies they sell MUST have adequate limits. Encouraging (read: offer premium discounts or surcharges based on meeting certain underwriting guidelines) policyholders to reduce fire risk is a win-win situation for both the homeowner and the insurance company. In order for a policyholder to have a valid financial cushion, coverage must be adequate.

One of the things I love about working for an insurance company is that I feel we make a difference. Yes, everybody hates their insurance co. Shoot, there are times I dislike my own. I pay a lot of money for a product I hope to GOODNESS I never have to use. When I do have to file a claim, there is definitely stress present. However, without that financial cushion, many, many, many people would experience financial difficulty and/or ruin.

On the personal side of things, the devastation felt by so many people who have lost their homes or are in danger of losing their homes is horrifying. My heart aches for so many who have lost so much. The loss of life is even worse...

Insurance Humor

An insurance claims manager says to a customer, “Thank you for your patronage, Mr. Smith. I wish we had twenty policyholders just like you.”

“Gee, it’s nice to hear you say that,” Mr. Smith replied. “But I have to admit, I’m kind of surprised. As you know, I make many claims and my premium payments are always late.”

"That’s OK,” the claims manager replied. “We’d still like twenty customers just like you. The problem is, we have two hundred.”

Happy Friday.

M.W.