Bodily Injury Blog » Insurance Bad Faith

Florida Orders Insurers to Repay Policyholders

Edward Bills — Wed, 19 May 2010 23:14:08 +0000

In Florida, a group of workers’ compensation insurance companies has been ordered to repay millions of dollars in excess profits to policyholders. Florida Insurance Commissioner Kevin McCarty announced this week that 16 insurers must pay a total of $9.4 million back to their customers. State law requires workers� compensation insurers to return excess profits. Data showed that the 16 insurers had realized excess profits in 2005, 2006 and 2007. The companies have 60 days to comply with the order.

Insurance Fraud Lawsuit Settled

Edward Bills — Thu, 22 Apr 2010 16:48:10 +0000

Nationwide Insurance has agreed to a $6 million settlement in a class-action lawsuit that accused the company of fraud and violating Ohio consumer protection laws. According to the suit, customers who paid semi-annually, quarterly or monthly were charged more than the maximum premium. The lawsuit will affect about 230,000 current and former Nationwide term-life insurance holders.

Anthem Blue Cross Ordered to Pay Cost of Liver Transplant, Legal Fees

Edward Bills — Thu, 18 Mar 2010 20:32:05 +0000

A Los Angeles jury recently awarded a California man more than $200,000 to cover the cost of a liver transplant after his insurance company, Anthem Blue Cross, refused to pay. Ephram Nehme was on the transplant list at UCLA in 2006. When his condition deteriorated, he decided to have the operation in Indiana, where the wait time was much shorter. After the surgery, however, his insurance company refused to pay the medical bills. The jury concluded that Blue Cross had breached its contract with Nehme and acted in bad faith by not paying his medical bills. Nehme was also awarded damages to cover his legal fees.

Jury Orders City to Pay Damages to Bus Crash Victims

Edward Bills — Mon, 01 Mar 2010 23:24:40 +0000

A jury has ordered New York City Transit to pay $7.5 million to two women injured in a bus crash. A jury found that the department was liable after a city bus ran a red light and crashed into a car in which Brenda Whaley and Amanda Wade were riding, causing them both to suffer severe injuries. The Transit Authority had the opportunity to settle with the women for $3 million out of court, but declined to do so.

Insurer Ordered to Pay Damages for Canceling Coverage

Edward Bills — Thu, 04 Feb 2010 20:34:47 +0000

A Boulder County jury awarded a Colorado woman $37 million in a lawsuit after her health insurance company canceled her coverage following a serious car wreck. Time Insurance Co. had refused to pay Jennifer Latham�??s $185,000 in medical bills after the accident because they claim she failed to report a previous visit to an emergency room for shortness of breath. Latham�??s lawyer said he was hoping the jury would award her around $7 million and was shocked and pleased to receive such a high verdict.

Subprime Suits Unlikely to Succeed, Insurer Says

Edward Bills — Thu, 10 Dec 2009 02:16:04 +0000

Subprime mortgage-related lawsuits against company executives or board members have little chance of succeeding, according to a firm that provides insurance against such claims. XL Capital Ltd. CEO Michael McGavick said yesterday that it will be tough for investors to meet the legal threshold required to extract damages. Investors filed about 100 class-action securities lawsuits in 2008 seeking to recover losses related to more than $1.7 trillion in global writedowns and other credit losses.

Insurer Seeks Protection from Windstorm Claims

Edward Bills — Wed, 18 Nov 2009 14:55:48 +0000

The Texas Windstorm Insurance Association has filed motions seeking immunity from lawsuits stemming from its handling of claims in the wake of Gulf Coast hurricanes, the Houston Chronicle reports. The state-created insurer argues that its semi-governmental status protects it from some types of liability. The insurer currently faces nearly a thousand lawsuits over its handling of hurricane-related claims.

Judge OKs Lawsuit Against Cigna

Edward Bills — Thu, 08 Oct 2009 22:20:47 +0000

A federal judge has given the green light to a lawsuit over an incident in which employees at Cigna Corp.�s Philadelphia headquarters allegedly heckled the mother of a 17-year-old girl who died after the insurer refused to pay for a liver transplant. U.S. District Judge Gary Allen Feess ruled that the family could pursue damages for emotional distress. In 2007, a California judge rejected the family�s wrongful death lawsuit against Cigna

Regulators Investigating Wind Damage Policies

Edward Bills — Fri, 28 Aug 2009 19:41:28 +0000

Insurance regulators in Texas are trying to determine whether the Texas Windstorm Insurance Association may have wrongly denied some claims for roof damage following Hurricane Ike, the Houston Chronicle reports. The investigation comes after nearly two dozen policyholders complained about the denial of claims relating to unsealed asphalt shingles. The association contends that it should not have to cover claims for shingles lifted from roofs by the hurricane. However, shingles must be sealed in order for customers to retain their policies.

Senate Leader Asks Cigna for Answers on Small Business ‘Purges’

Edward Bills — Fri, 07 Aug 2009 18:56:05 +0000

The chairman of the Senate Commerce, Science and Transportation Committee has asked Cigna Corp. to answer allegations that the insurer has dropped coverage for small businesses with seriously ill workers. In a letter to the company, Sen. John Rockefeller asked why Cigna executives had used words such as “purge” to describe the insurer’s small business strategy to investors. The inquiry is part of a larger investigation into the health insurance industry.