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A judge in Guadalupe County, Texas, has dismissed a case alleging that Texas Mutual Insurance Company acted in “bad faith” in a workers’ compensation case involving a pre-existing medical condition. Texas Mutual reported that District Court Judge W.C. Kirkendall sided with the workers’ compensation insurer in ruling that Texas Mutual established a reasonable basis for its decisions in handling the workers’ compensation claim of Charles E. Durst Jr. of Seguin, and therefore cannot be held liable for bad faith as a matter of law. Texas Mutual paid medical and income benefits to Durst after he suffered an on-the-job injury at… Read More »Bad Faith Claim

I have been using AT&T (SBC, Pacific Bell) for the past 8 years. There is only one positive experience with AT&T since then: when I finally cancel my service. Here is a partial list of my complaints: 1. In this big corporation one hand doesn’t know what the other does. Sales rep promises golden mountains, customer service later says it was insane  and nonsense. Example: 12/2006:  ATT: – We will move your lines and internet from location to location for free and you won’t have to start your contract again Me (in 1 month): -New Contract? Higher fees? Not eligible… Read More »AT&T Complaints

A pedestrian who was injured by a drunk driver can only recover the amount the medical providers accepted from her insurer, not the total amount billed, the California Court of Appeal has ruled. According to People v. Bergin, Jennifer Armstrong was crossing the street when she was struck by Michael John Bergin. Armstrong subsequently suffered injuries, including a fractured knee that required two surgeries. Bergin entered a plea of nolo contendre to a charge of driving with a blood alcohol level of 0.08 percent or more, and causing injury to another person. He was convicted and placed on probation for 36 months.… Read More »Pedestrian Injury Amounts Paid

A Southern California insurance agent has been sentenced to 10 years in prison after pleading guilty to a $2.5 million fraud scheme. Prosecutors say Anthony Medina, who operated Prompt Insurance Agency in Newport Beach, received the sentence in Superior Court after pleading guilty to 152 felonies. Medina took money from small business owners between 2003 and 2007 under the pretense of obtaining workers compensation and liability insurance, but instead used the cash to fund a lavish lifestyle that included houses, cars and a boat. He faces a restitution hearing on Nov. 12. His wife, Vanessa Cheverri, was previously sentenced to… Read More »Insurance Fraud – Beware

The Hartford Financial Services Group Inc., which reported a $2.63 billion third-quarter loss last week, said it plans to cut 500 jobs, or about 1.6% of its work force, in an effort to cut costs. A spokeswoman said the job cuts, as well as other expense reductions, are intended to cut $250 million in expenses. She said she did not have a figure for how much the job cuts alone would reduce expenses. All 500 jobs will be eliminated in November, the spokeswoman said. While there will be no additional cuts announced in December, “we may have some additional reductions… Read More »Hartford Announces Job Cuts

To our property and casualty insurance distributors: As Chairman and CEO of The Hartford, I want to extend my personal thanks for your continued support of our partnership. The recent turbulence in the equity markets has produced some disturbing headlines. I want to take this opportunity to share the facts about our financial strength with you, our trusted distribution partners. The Hartford is a company that has delivered solid core operating results, possesses a good capital base, has excellent insurance financial strength ratings, and continues to focus on improving our property and casualty products and distribution relationships. Financial Strength We… Read More »Ramani Ayer, Hartford Chairman and CEO

The California Division of Workers’ Compensation announced that the maximum temporary total disability (TTD) rate will increase to $958.01 on Jan. 1, 2009. The increase to the maximum TTD rate marks the third year in a row that the TTD rate will be affected by a change in the state average weekly wage (SAWW). Beginning in 2006, Labor Code section 4453(a)(10) required the rate for TTD be increased by an amount equal to the percentage increase in the SAWW as compared to the prior year. The SAWW is defined as the average weekly wage paid to employees covered by unemployment… Read More »California Increases Temporary Total Disability Rate

Californians overwhelmingly consider it their responsibility to prevent underinsurance, with homeowners in areas struck by catastrophic wildfire most strongly recognizing that they must keep their homes adequately insured, according to a new statewide poll. Sixty-one percent of those surveyed in the poll commissioned by the Insurance Information Network of California said that homeowners have the primary responsibility to keep their insurance policies current. Of the 800 people interviewed, 73 percent of San Bernardino County and 68 percent of San Diego County respondents — people located in areas devastated by recent wildfires — call insurance updates a personal responsibility. California courts… Read More »Californians Take Responsibility For Underinsurance

Commercial property/casualty premiums continued a downward slide during the third quarter of 2008, but there were suggestions the market decline may have leveled off, at least between July and September, for small and mid-sized accounts, according to commercial insurance brokers. The latest Commercial P/C Market Index Survey by The Council of Insurance Agents & Brokers (CIAB), which was taken at the beginning of October, does not show the full impact of the financial crisis and the near collapse of insurance giant AIG, so the fourth quarter may tell a different story.