As Coverage Counsel posted, the Insurance Department published its proposed regulation 68 last week. I know at least one of you noticed my “Brave New World” post. That’s what it was about.
Here is one of the most noxious revisions:
(j) The failure of an insurer to follow the claim practice goals shall not give rise to a private cause of action.
How do you like this one:
“The insurer need not establish or prove that the failure to attend such an examination is a willful or deliberate act on the part of the applicant.”
There goes Thrasher (not that the courts were really buying it, anyway)
The Insurance Department isn’t about to let a little caselaw get in its way.
At first glance, the most interesting aspect is the implicit recognition that, under the current Art 68, there is a private cause of action for a failure to follow claims practice goals.
The biggest insult is it went from “principles” to “goals.” Is this an admission that insurance companies have no principles. And that it is now merely their goal — their forlorn hope — to have principles.
What if we allowed the citizens to have a goal of paying their premium. And when they failed to attain that goal they still kept their insurance coverage — if you can call it that. Then the insurance company had to sue for their premium money but the Court threw out the suit saying — “No Private Right of Action besides its only a goal.”
The reason we are in this economic malestrom and on the Eve of no longer being a Super Power is because regulators refused to regulate. What a sham.
And…why, pray tell, does the NF ins. Carrier need a copy of the P.I. Summons and Complaint??? Understandably necessary in UM/UIM actions, but why NF? Still sifting through this…….
OMG WTF