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 Posted: Fri Nov 21, 2008 3:35 am Post subject: |
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Last comment unless I'm challenged again.  By the way, I love a challenge...BRING IT. 
Lori wrote:
| Quote: | | In this case, of course coverage is there...now after the claim is paid..that insured is in for a surprise, get canceled, get rid of the dog or both..then good luck on paying those new premiums buddy... |
Again, right on target. 99% of the time when an insured has a dog bite claim, the insurer will, if they're still within their underwriting investigation period, simply cancel the policy. The insurer will, of course, have to cover the loss, but that's the end of the ballgame. Insurers normally have (depending on state) 60 days after initial issue or renewal to "get off the risk." On an annual HO policy period, that means that in most cases the insurer, after the first 60 days, cannot get off the risk unless they can prove fraud/material misrepresentation in the app. The insurer investigates and pays the claim, and in the meantime the insured gets cancelled.
If the policy has been in effect past 60 days, the insurer is pretty much stuck on the risk until renewal, unless the policy lapses for non-pay. Then the insured is freakin' and needs to get new coverage after they've been cancelled or non-renewed. They start calling around for quotes, and find that for some reason every agent they speak with asks them "Have you incurred any losses within the last 3 years? Good agents won't ask it that way. Good agents would phrase it in a manner that can elicit a lot more information from the applicant. Something like "tell me about any losses or situations that involved your insurance company over the last 3 years."
The insured also is asked if they've been cancelled or non-renewed. 
So, the insured is honest, and tells the agent about the dog bite thing. Every agent she talks to, right at that point, tells her the same thing- "I'm sorry, there's nothing I can do for you." I don't know of any mainstream carriers that will TOUCH an insured with a recent dog bite liability claim. There are exceptions to that statement, of course. Some carriers will work with the insured if they are a historied customer (15+ years and no losses kind of thing) and they get rid of the dog, or have a boatload of other business with the carrier on the books.
Continuing...One of the agents, however, knows about surplus lines insurance coverage, and hooks her up with a non-admitted carrier that will issue policies for "claim-challenged" insureds- for twice the premium and half the coverage. Commonly, these "off-the-board" policies don't provide liability coverage either, or charge a fortune for the coverage. Most consider it an endorsement. For any of you that have worked with surplus lines carriers and contracts, it's pretty cool, isn't it?  Definitely an awakening for the novice, these carriers insure some pretty weird stuff.
Hey Lori- got another challenge? I feel ornery  I'll stop babbling now...
InsTeacher 
On the other hand: |
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InsTeacher
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| Posted: Fri Nov 21, 2008 11:26 am Post subject: |
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| Quote: | | Hey Lori- got another challenge? |
ah dude, I seriously wasn't trying to challenge you in any way...just like playing 'what if'...ha ha...aren't you thrilled to pieces you never had me in a class!!
No think I'm done with this one...no wait one more....so agent somehow keeps insured from getting canceled...they get rid of dog...actually this used to be quite common in my area, dog bite...ins ordered to get rid of dog by carrier or policy will non-renew, they of course got rid of the dog..ok, so this happens, they keep their policy...then a few years go by they decide, they will get a nice dog, maybe something sweet like a toy poodle (cause they never bite  )...and gues what ? yep it bite the neighbor kid that is over playing with junior...coverage? claim paid?
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Sat Nov 22, 2008 3:54 am Post subject: |
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| Quote: | | ah dude, I seriously wasn't trying to challenge you in any way...just like playing 'what if'...ha ha...aren't you thrilled to pieces you never had me in a class!! |
I like "what if's." Makes ya think. As far as having you in one of my classes, that could be interesting. Something tells me that it might be kinda fun. OK, onto the question. I'll get to why in a sec, but again- I think this is on the agent.
Your premise is solid:
| Quote: | | they of course got rid of the dog..ok, so this happens, they keep their policy...then a few years go by they decide, they will get a nice dog, maybe something sweet like a toy poodle (cause they never bite )...and gues what ? yep it bite the neighbor kid that is over playing with junior...coverage? claim paid? |
If the carrier and agent have done their jobs when the insurer agreed to maintain the coverage, this should't be an issue. In addition to making the owners get rid of the dog, most will attach an exclusion as well. It's pretty much up to the agent to let the client know if this occurs, and the company will, of course, send notice in the mail. BUT  no exclusion attached to the contract means if doggie bite, insurance company pay. 
Finally, I have to say this:
| Quote: | | maybe something sweet like a toy poodle (cause they never bite) |
Those little yap mongrels cause more problems than people imagine. Most people think that toy poodles are harmless little balls of fluff. They are, until they get perturbed. They can inflict some nasty wounds..I've seen a couple of claims for them. Insurers will normally tolerate those "poor excuse for a dog" dogs, but barely. Give me a real dog anyday.
InsTeacher |
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InsTeacher
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| Posted: Sat Nov 22, 2008 12:27 pm Post subject: |
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| Quote: | | Those little yap mongrels cause more problems than people imagine. Most people think that toy poodles are harmless little balls of fluff. They are, until they get perturbed. They can inflict some nasty wounds..I've seen a couple of claims for them. Insurers will normally tolerate those "poor excuse for a dog" dogs, but barely. Give me a real dog anyday. |
My post somehow lost my 'eye roll' by they 'cause they never bite' comment...I know they are one of the top ten in biters....
But of course you are correct...we'll be paying that claim again...unless when the company agreed to keep them they had them sign a dog bit exclusion....which I've personally never seen...doesn't mean they don't exsist, I've just not seen them....
I had three claims with one mail many, in two years at three different insured's homes...poor guy...i wondered (and checked) if he wasn't playing the insurance lottery but he wasn't just reallllllllllllllly bad luck, or dogs hated him..
_________________
"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Mon Nov 24, 2008 10:30 am Post subject: |
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| This has been a really interesting post. I have been following it. I can imagine a teacher if you were both in his class. LOL. I kind of feel bad for the mailman..poor guy. I guess they probaly would have to get use to that being in their profession. |
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fireyone
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