Philadelphia Injury Attorney Blog

On September 15, 2008, the beleaguered insurance company, American International Insurance Group, one of the nation’s and world’s largest insurers is struggling for survival. I received an email and call from an agent at one of the nation’s largest insurance brokers telling me that many clients are “in a panic” and asking me for my “take” on this situation. According to sources, AIG is getting help from the Insurance Commissioners of New Jersey, New York and Pennsylvania, as well as the Federal Government, in raising cash while swapping its subsidiaries liquid assets for those that are difficult to convert into cash by the parent company. As an experienced insurance claims attorney for almost 30 years, let me share my thoughts and attempt to calm your fears. (www.reiffandbily.com).

If you have a policy with AIG Insurance Company, “they are solvent and have the ability to pay claims”, said Sandy Praeger, President of the National Association of Insurance Commissioners in a press release on September 16, 2008. “Our job is to ensure they continue to have the ability to pay”. The New York State and Pennsylvania Insurance Departments are working with AIG to review transactions involving turning illiquid assets into liquid ones. Praeger stated “State insurance regulators will only approve this type of action if there are assured that it is part of a total resolution of liquidity at the parent company and fairly compensates its insurance company subsidies”. AIG’s New York and Pennsylvania companies have approximately $120 billion dollars in total assets, about half of which is Class 1 bonds. The regulators must issue that any assets being exchanged or at least of equal quality or the financial strength of the insurers will be negatively affected. The Pennsylvania Insurance Commission is closely moderating the fate of AIG and its impact on the citizens in the Commonwealth of Pennsylvania. According to an Associated Press story on September 17, 2008, the United States Government will infuse taxpayer funds into the company, granting the U.S. Government an 80% stake in the giant insurer and the right to remove senior management. According to sources, the AIG affiliated automobile insurance companies remain on solid footing. The auto insurance unit is well capitalized. Roger Schmelzer, President of the National Conference of Insurance Guarantee Funds in Indianapolis states “that the holding company is at issue right now”. The holding company could go bankrupt and for policyholders it would just be business as usual. We emphasize that AIG insured’s should not panic. The Commonwealth of Pennsylvania has a Guarantee Association in place to protect policyholders in the event of an insurance company failure. Insurance industry analysts and government officials advise that there is little for policyholders to worry about. There are safeguards in place, similar to FDIC insurance that backs up bank deposits. AIG has 11 insurance units in Pennsylvania regulated carefully by the state.

Continue reading "FINANCIAL CRISIS AT AIG HAS LARGE AND CONFUSING IMPACT ON PENNSYLVANIA AND NEW JERSEY AUTOMOBILE OWNERS INSURED WITH AIG - PHILADELPHIA PERSONAL INJURY AND INSURANCE CLAIMS LAWYER JEFFREY REIFF ADVISES HIS CLIENTS NOT TO PANIC - SAFEGUARDS IN PLACE." »

On September 15, 2008, many insurance companies had their assets battered on Wall Street. AIG, one the nation’s and world’s largest insurance companies, closed at $4.76, reaching a low of $3.50 from its yearly high at $70.13. Many of the Wall Street pundits were calling for the failure of AIG and other insurance companies who sought a lifeline for their survival. I myself was an AIG policyholder and switched to another insurance company earlier this summer as my gut recognized a financial crisis on the horizon. Today, we carefully analyzed all of our files where AIG was our opponent and fielded calls from several clients concerned about their insurance policies or their case’s financial fate where AIG was on the other side. At the time of this writing, I am not quite sure how AIG will ultimately fare in the financial markets. However, consumers should note that each state has a guarantee association in place to protect policyholders in the event of an insurance company failure.

Typically, if you have a claim filed with an insurance company that fails, the State Guarantee Association takes over the claim. If they have a claim and the insurance company is insolvent, the Guarantee Fund accepts the claim the way an insurance company would and they would do everything an insurance company would do said Roger Schmelzer, Chief Executive of the National Conference of Insurance Guarantee Funds, Inc. in Indianapolis. The Guarantee Fund steps into the shoes of the insurance company for claims paying perspective. The Pennsylvania Insurance Guarantee Association only protects Pennsylvania residents and property owners. Residents of other states or Pennsylvania residents owning property out of state are protected by other states Guarantee Associations. While the Guarantee Association payments are limited by statutes, which vary by state, most claims for policy benefits will be paid in full. Claims or policy benefits not paid by the Guarantee Association become claims against the liquidation estate. Most licensed insurance companies are required to belong to their state guarantee association that cover the lines of business that the companies write.

Continue reading "PHILADELPHIA PERSONAL INJURY ATTORNEY’S THOUGHTS ON WHAT DO I DO IF MY INSURANCE COMPANY OR THE INSURANCE COMPANY OF THE DEFENDANT FAILS" »

Driving is a privilege, not a right. Too many drivers do not take the proper responsibility to handle their motor vehicle in a safe manner. It is a sad fact that far too often a driver is intoxicated and causes an accident that results in serious injury or death to the other party. The Philadelphia auto accident attorneys at the law firm of Reiff and Bily have been researching and successfully handling drunk driver cases since 1979.

The Pennsylvania Department of Transportation (PennDot) reports that in 2005, drunk driving was responsible for 12,590 crashes, 313 of them being fatal. One alarming concern was that 22% of driver deaths between the ages of 16 to 20 (under the legal age of 21) were drunk drivers. Of the age group 21-35, 50% of driver deaths were drunk drivers. In total, 580 people died in alcohol-related crashes. On average, each day there was 36 alcohol-related traffic crashes with 1.6 people killed and 29 injured. Most alcohol-related crashes occurred between midnight and 4 AM on the weekends.

A Pennsylvania uninsured motorist accident is common, in general, but especially so for drunk drivers. Often, drunk drivers do not have insurance or not enough insurance coverage for damages. Often drunk driving could be avoided with help from others. It is always a good idea to have a designated driver and never drive after drinking. Some bars and restaurants have a breath alcohol content (BAC) machine, which will tell you if you are over the legal limit. The key to stop drunk driving is prevention; prevent someone who has had too much to drink from getting behind that wheel.

Continue reading "Dram Shops and Drunk Drivers – Death From A Bottle" »

With An Uninsured or Underinsured Defendant?

Every state has a law that requires motorists to have some type of automobile insurance. This is known as the state minimum automobile insurance requirement. Even with strict minimum insurance laws, many drivers still do not have any insurance coverage or are underinsured. When an uninsured or underinsured motorist is involved in an accident, the lack of coverage can cause hardship for any person who suffers an injury as a result of the accident. It is up to you to have proper insurance coverage in the event that the motorist who caused your injuries is uninsured or insufficiently insured with enough coverage to properly compensate you for injuries sustained. The Pennsylvania auto accident lawyers at the Philadelphia law firm of Reiff and Bily have been researching and handling uninsured and underinsured motorist cases since 1979.

The Insurance Research Council (IRC) reports that 14% of all drivers were uninsured . Pennsylvania had a reported 9% of uninsured motorists, which is much higher now especially in the city of Philadelphia. The reason why so many drivers do not have proper insurance is economical. As economic conditions continue to deteriorate, it is likely that there will be a growing epidemic of uninsured and underinsured motorists on the roadways. Many drivers cannot afford even the minimum amount of coverage required by state law. It also costs money for the state to enforce the state minimum coverage law. Some states are starting to take action to prevent uninsured drivers on the road. In California, a new bill enacts a provision that would require drivers to register their insurance coverage or else have their license plates removed. Removing the plates will still allow a limit of how many days one could drive without a plate, but after that the vehicle will be impounded if driven without a plate. While this system may have some loopholes, it’s a step in the right direction for drivers to maintain minimum insurance coverage.

Continue reading "What If I Get Involved In An Auto Accident" »

Deny Claims and Refuse Insurance to Those Who Need It The Most;
DENY DELAY and DEFEND

A recent study by the American Association for Justice (formerly The Association of Trial Lawyers of America) revealed the 10 worst insurance companies in America. To identify the worst companies for consumers, researchers at the American Association for Justice undertook a comprehensive investigation of thousands of court documents, SEC and FBI records, state insurance department investigations and complaints, news accounts from across the country and the testimony and depositions of former insurance agents and adjusters.

The 10 worst companies according to this study were:

1. Allstate
2. Unum
3. AIG
4. State Farm
5. Conseco
6. Wellpoint
7. Farmers
8. UnitedHealth
9. Torchmark
10. Liberty Mutual

Many insurance companies have discovered that they can make more money by simply paying out less. As a senior executive at the National Association of Insurance Commissioners, the group representing those who were supposed to oversee the insurance industry it was said that “the bottom line was that insurance companies make money when they don’t pay claims”.

One example was Ethel Adams, a 60 year old woman left in a coma and seriously injured after a multi-vehicle crash in Washington state. Her insurance company, Farmers, decided that the other driver had acted intentionally and denied her claim contending that an intentional act is not an accident. Another example is Debra Potter, who for years was an agent for Unum selling Unum’s disability policy until she herself became disabled and had to stop working. All along, Ms. Potter thought she was helping other people protect their future but when her own time of need came, she was told her multiple sclerosis was “self reported” and her claim was denied by Unum, the very company whose policies she sold.

In cases like these and countless others, the name of the game is DENY, DELAY, DEFEND. Do anything, in fact, to avoid paying claims. For companies like Allstate, there are corporate training manuals explaining how to avoid payments, portable refrigerators awarded to adjusters who deny the most claims and pizza parties to shred documents.

Continue reading "HOW INSURANCE COMPANIES RAISE PREMIUMS " »

All owners of motor vehicles in the Pennsylvania are required by law to purchase and maintain automobile insurance, however, not everyone can afford complete coverage. By picking an insurance coverage with limited tort rights, you can save some money, however, you lose the right to sue for pain and suffering if you are injured by another person's negligence, no matter how seriously you are injured. The Pennsylvania auto accident lawyers at the Philadelphia law firm of Reiff and Bily have been researching and handling thousands of automobile accidents cases since 1979 and all too often meet with clients who were sold a false promise by their insurance agent only to find out that the policy they purchased was not full coverage and they could not collect for their injuries sustained even though they were caused by somebody else’s fault or negligence.

Be careful when your insurance salesman tells you that you are purchasing full coverage. Do not confuse this with full tort. Insurance agents are told by many insurance companies to “push” limited tort coverage to their clients and often receive higher commissions as a result. Know all of your rights and ask proper questions to make sure that you are fully covered by your policy when the need to collect arises. If you are uncertain please call the Pennsylvania vehicle accident law firm of Reiff and Bily for a FREE, NO OBLIGATION insurance policy check-up. Chance favors the prepared mind!

Continue reading "Don’t Believe Your Insurance Salesman’s Pitch – Go Full Tort" »