Question About an Open Claim, and a New Carrier..

[VaDwayne]

I have a potential commercial client that was speaking to me about their personal auto and home too.

They are in the middle of a open claim, they have an attorney, because they had an antique car that was in a body shop being restored and the shop burnt down, without being insured of course.

Their current carrier is not offering them what they want for theit car so they have hired an attorney to help them get it straightened out.

My question is this: I am told that no other carrier will look at them because they have an open claim with their current carrier. Why??? What are the risks to the new carrier???

 

[Jerbond]

Simple answer- because that's how it goes. Truth is, the new carrier could possibly be brought into the claims process. You are going to have to wait for the claim to get closed prior to switching them to another carrier. This is a great reason to switch to a CHUBB antique vehicle policy. You get agreed value, and no deductable- the end.

 

[Air Jer]

I have moved accounts with an open claim. I'm trying to figure out in the above scenario how a new carrier would get involved if all of the cards are laid out on the table to the underwriter so that the companies file can be documented.

 

[markschneider86]

Most of my companies will not touch it, if there is an open claim. Even after talking to the underwriter.. They want to completely stay out of the litigation for the claim...

 

[joshb]

Unfortunately it sounds as if the client mentioned in the first post had an agent who was not looking out for his client's best interest. An antique car should not be on a typical auto policy and subject to ACV. The agent should have informed him of that and wrote the policy with Hagerty, or Chubb (as someone previously mentioned) or another carrier that specializes in classic/antique cars. Could result in an E&O claim for that agent, now that its in a lawyers hands. As for switching during an open claim, I have switched customers with an open claim and not had a problem. Some carriers may not want it, but others don't mind. Also, I have never seen where the new carrier was brought into a claim; how can they be involved with something that happened in the past and before the inception date?

 

[markschneider86]

Joshb, no matter if the car was writen under ACV or what you are referring to which is an agreed value, the company will have to pay the value of the car. Agreed value just gives you better policy language. Anyways we have no idea who the carrier is or if its insured under ACV or agreed value. I have the Hagerty, they have a lot of restrictions, one big one is the vehicle being locked and covered up, and no major household violations.

JOshB, apparently you are not aware of attorney's.... When it comes to litigation, things can get really complecated. Attorney's always are flipping into all kinds of tricks, THATS WHY INSURANCE COMPANIES WILL NOT WRITE PROSPECTS WITH OPEN CLAIMS, I don't know who you write for, but most insurance companies (95 percent) wont write it, because they have had bad experiences with it!

I want to know a list of companies that write biz with an open claim???

 

[joshb]

Joshb, no matter if the car was writen under ACV or what you are referring to which is an agreed value, the company will have to pay the value of the car. Agreed value just gives you better policy language. Anyways we have no idea who the carrier is or if its insured under ACV or agreed value. I have the Hagerty, they have a lot of restrictions, one big one is the vehicle being locked and covered up, and no major household violations.

JOshB, apparently you are not aware of attorney's.... When it comes to litigation, things can get really complecated. Attorney's always are flipping into all kinds of tricks, THATS WHY INSURANCE COMPANIES WILL NOT WRITE PROSPECTS WITH OPEN CLAIMS, I don't know who you write for, but most insurance companies (95 percent) wont write it, because they have had bad experiences with it!

I want to know a list of companies that write biz with an open claim???

Mark, you speak very authoritatively and with a lot of hostility, not sure why, maybe because you have a chip on your shoulder? After rereading my original post, I do not see any reason to where you should be so offended. Anyway, the company pays the value of the car you are right, that value on an ACV policy is depreciated, and the standard auto policy is not meant for antique cars. You must have forgotten, you and I are in different locations (I am in Florida), and each companies restrictions vary by state. Hagerty has a very good policy in my area, and yes they do require the vehicle to be covered. ITS AN ANTIQUE VEHICLE! WHY WOULD IT NOT BE IN A GARAGE OR COVERED?

I am very well aware of lawyers (I wasn't born yesterday ). and I know things can get complicated (see the correct spelling of complicated), but they cannot get an insurance company involved that was not involved at the time. Lets look at it from another standpoint; Say the insured must stay with their current carrier because no one else will write it, but he forgets to pay the premium and his policy lapses and the insurance company says no we will not reinstate. Is he SOL? No, he will just need to go to another carrier. Is that new carrier going to be brought into the previous claim that's been going on for sometime, just because they now insure him? No sorry, it won't happen. You seem very sure about your 95% number so I then ask, Can you cite an example where the new carrier was brought into an old claim? Below is a list of my auto carriers and I have not had a problem EVER writing someone with an open claim, however I do advise them to stay where they are until it is settled, but if they want to move I'll be happy to have the business.

Nationwide/Allied
Travelers
Metlife
Safeco
Bristol West
Infinity
Progressive
AIC
Encompass
American Vehicle
GMAC
The Hanover
The Hartford
Mendota
Victoria
Chubb

On the homeowners side open claims are a different story, but on the auto, I have not had a problem, although it does not come up everyday. I do not know (and will not pretend to know) about the coverages you have in Denver, but in FL we have PIP coverage and up until recently auto carriers did not have a problem writing consumers with PIP claims and PIP claims can stay open for years. For example one of MY customers was in a serious accident and had a PIP claim, since then I have switched him twice to two different carriers. PIP claim is still open with the original carrier. No one ever said a word to me about it.

Have a nice day Mark, and lighten up a little bit.