California Personal Injury and Insurance Blog

Free Identity Theft Program

I have written before about insurance companies offering identity theft protection with your insurance policy. However, the programs cost money. Well, I came across a free identity theft program.

Jenifer Miller of Green Valley Mortgage, in cooperation with the Solano County DA's office, is offering Credit Watch. You can get more information at her website. The program allows you to check your credit reoprt up to 3 times per year at no cost. Checking your credit is the best way to monitor identity theft according to the FTC.

I think you owe it to yourself to check out this program.

Nothing But Nets

I am going off topic for a minute today. I know I am not posting regularly right now, but it will become more regular soon. In the meantime, I bring you this special (thanks to Rick Reilly)....................

Every DAY nearly 3,000 children die in Africa from Malaria. I have to admit that I never realized malaria was such a problem. But, it is. And what can reduce this problem? Nets.

Sports Illustrated has teamed up with the UN for SI's Nothing But Net program. Go to this website and click on the SI's Nothing But Net Logo to donate $20. That buys 2 nets.

Okay, some of you may be confused right now. SI? Nets? Malaria? My blog? I am an avid soccer player. I have been playing since I was 4. 50 weeks out of the year, you will see me on a soccer field. And, when I am on the field, I kick the ball into a ............. net. So, I figure if SI can start this program, I can give some money since I have been using nets for a LONG time.

Rick Reilly put up $20,000 for the 20,000 times he has written about nets. Now, I don't expect anyone to do that. But, is asking $20 too much? If you are reading this, think about making a donation. 100% of the proceeds will go to buying nets thanks to Ted Turner covering the overhead costs.

If you do it, send me an email and let me know or post a comment. Maybe my readers can match Rick Reilly. I have $20 to start. Who's next?

"Tort Reform" Form

For those of you who like to read about tort reform, my friend Ben Glass recently put out his most current newsletter. In it, you will find a form you can sign and give to your doctor.

After reading this, see if you support tort reform, caps on damages, and other nonsense spewed from the insurance companies.

A new trick by insurance defense attorneys

The insurance companise have actually surprised me with a new trick. This one I admit I have not seen before, nor have I ever really contemplated it. The defense attorneys in a civil case want the plaintiff's attorney to shut down his website during the trial. They are concerned that jurors will not follow the judge's instructions and may google the attorney. If they do, they will find his website and read his articles about medical malpractice.

Here is a link to a story about this. Just so you can see the original sources, here is a link to Gerry's blog and his website.

I have to tell you that this is a new one. It shows creativity by the defense attorney, but also a lack of understanding of anything. First, the defense attorney is saying that people on juries cannot be trusted to do the right thing and follow the rules. I guess the insurance industry does not trust people to be honest. That is quite telling. Second, the defense attorney does not want any advertising done during a trial? Gerry's website is an advertisement for his services. Finally, should the defendant doctor take down his website? Maybe the defense firm, assuming they have one? How about the insurance company?

I think the defense attorney really did not think this through. He is calling in to question the ethics of anyone who might be on a jury. Now you know what the insurance companies really think.

FAQ: Can I fire my lawyer?

I retained an attorney. I want to settle my case even though I am still in pain. My attorney tells me to wait. Now I want to find a new attorney. Can I?

A few things to talk about. First, your attorney is right that you should not talk about resolution of your case until you are better. The statute of limitations is two years. You still have plenty of time. But, once you file your case, certain timelines apply. Thus, you are better off waiting until you are better, or closer to better, before you proceed.

Second, you can fire your attorney. Your attorney is entitled to the reasonable value of his services unless you fire him for cause. Your new attorney and your current attorney would then share the fee. This may make other attorneys less likely to take your case.

I tell everyone who calls me who has a current attorney to send a letter to the attorney and ask for an appointment to discuss the case. Let him know you are not happy and see what he says. You hired him for a reason so you should not be so quick to fire him.

FAQ: Is a cosignor on a loan responsible?

I cosigned on a loan for my daughter to buy a car. Am I responsible if she gets in an accident?

If you only co-signed on the loan, you are only responsbile to the bank. The bank will come to you if your daughter does not make her payments.

However, you should make sure that your name does not appear on the title. Go to DMV and request a title print out or ask the bank for one. If you are on the title, you can be held financially responsible if your daughter is involved in an accident. If you are on the title, your safest bet is to take out the insurance policy yourself so that you know that there is always coverage on the vehicle.

FAQ: Damaged After Market Parts Coverage

My aftermarket stereo/rims/dvd player/video game machine was damaged in an accident. Does my insurance company have to pay for the damage to this equipment?

There are two issues here. First, did the insurance company know about the aftermarket parts? Did they inspect your vehicle prior to insuring it? Did someone come out and take pictures? Did you tell your agent about it? If you did, you can go to question two. If you did not, then they probably do not owe for it.

Second, what does the insurance policy say? This is the most important step of any insurance coverage question. Some policies limit and/or exclude aftermarket parts. You need to read your policy carefully. If the insurance company will not pay for it, they are required to send you a letter explaining why it is not covered and citing the part of the policy. Once you get that letter, read that section carefully. If they cannot cite the policy provision, then you are probably covered.

The safest course of action: let your insurance company know when you have added expensive aftermarket parts.

DOI Arrests Broker for Theft

Here is the text of a press release I received today from the Department of Insurance:

Insurance Commissioner John Garamendi Announces the Arrest of Former L.A. Insurance Broker for Allegedly Pocketing $381,966 in Liability Insurance Premiums from Clients

 

Former broker is charged with nine counts of grand theft; Suspect is currently in custody without bail in Sarasota, Fl., pending extradition

SACRAMENTO – Insurance Commissioner John Garamendi announced today the arrest of Bernard Warschaw, 78, a former Los Angeles insurance broker, on an extradition warrant obtained by California Department of Insurance (CDI) Investigation Division. Warschaw was arrested on April 12 by local law enforcement authorities in Sarasota, Fl. He has already appeared in Florida court and waived his extradition.

The case began when CDI received complaints from Professional Underwriters Liability Insurance Company (PULIC) and Western Summit Insurance Brokerage. The companies alleged that Warschaw failed to remit thousands of dollars in insurance premiums he had collected for the placement of professional liability (medical malpractice) insurance policies.

“This type of act is a serious crime that ultimately victimizes all insurance consumers,” said Insurance Commissioner John Garamendi. “Insurance fraud is a major cost driver in the price Californians pay for premiums. Our mission is to protect consumers, and that includes aggressively attacking insurance fraud whenever and wherever we find it.”

The CDI’s investigation revealed that from July 2003 through December 2003, Warschaw, while operating a company in Marina Del Rey known as Pacific Professional Insurance, Inc., allegedly collected $381,966.87 in medical malpractice insurance premiums from over a dozen physicians and dentists within California as well as from other states. Warschaw then requested binding coverage without remitting the collected premiums to PULIC or any insurance company.

Bank records obtained in the investigation show fiduciary funds being transferred from a trust account to an operating account which was used to pay business and non-business related expenses.

Warschaw fled California in 2004 while under investigation by CDI and currently lives in Florida. Investigators learned in late 2005 that Warschaw was attempting to obtain a license to sell insurance in the state of Florida.

The case is being prosecuted by the Los Angeles County District Attorney’s Office. CDI investigators are coordinating with the D.A.’s Extradition Unit to bring Warschaw back to California to face charges. Warschaw is presently being charged with nine counts of grand theft. The U.S. Postal Inspection Service and Florida Department of Insurance assisted CDI with the investigation.

Why do I share that with you? Simple. If you take out an insurance policy, get a copy of the policy from the agent. If you use an independent agent or broker, contact the insurance company directly to confirm that your policy is in force. It is the only way to protect you in case your agent or broker has committed theft.

AB 1852 Pulled By Assemblyman Yee

AB 1852, a bill by Assemblyman Yee, has been pulled. The bill would have allowed insurers to use non-OEM parts when fixing your car if the parts were approved by CAPA.

As I wrote previously, this was a bad bill for consumers. There were two groups who benefited from this bill: CAPA and the insurance companies. The bill being pulled is good for consumers, but Assemblyman Yee is threatening to bring back this bad bill in the future. We can only hope that he decides against it.

Sen. Lott alleges State Farm destroying reports

Sen. Trent Lott's attorney is claiming that State Farm has destroyed or moved reports that showed that homeowners whose homes were damaged by Hurricane Katrina actually had covered losses. I wrote about this before at which time I commented that the rule was when in doubt, provide coverage.

Well, State Farm seems to think the rule is "when in doubt, destroy the evidence." Now, this is still an allegation, but when it starts to come up more than once, you have to wonder if it is a business practice. One couple makes the allegation and then Sen. Lott's attorney makes the same allegation based on whistleblowers who have come forward.

State Farm seems to be having problems with these hurricane claims. Heck, most of the insurance companies seem to be having problems. Allstate was sued in Texas and then came back and pulled out of some markets in Ohio because, as their spokesperson said "The current insurance model is not well-suited for handling losses from low-frequency, high-severity, mega-catastrophic events."

I keep bringing up this point, but no one seems to be listening: if the insurance companies would pay what they owe to begin with then they would have fewer problems.