Open Liability Claim - Can't Switch?

Sep 22, 2016

  1. insurance1822
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    insurance1822 Guru

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    Yes, I know that carriers won't take somebody with an open liability claim. But in what scenario could a new carrier get pulled in? If I have a prospective insured who's dog bit somebody last year & they switch to one of my company's...I don't see how they could get drawn in?

    Their new coverage wouldn't have been in force at the time of the loss?
     
  2. Josh
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    Josh Retired Agent, Current List Broker

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    They are probably wanting the claim finalized so they can give the right rate.
     
    Josh, Sep 22, 2016
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  3. djs
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    djs Super Moderator Moderator

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    They probably can't get drawn into paying the actual settlement, but this doesn't stop a lawyer from including them in the lawsuit. Given some wacky rules they may even end up being included in the settlement.

    My guess is though, they don't want to get stuck defending the case, even though it is frivolous for their coverage. Its just another legal bill to deal with.

    Also, a dog bite that happened last year that hasn't been settled yet has some serious legal stuff going on with it. Usually this is a very blood thirsty attorney. I would avoid it till the case is closed.

    Dan
     
    djs, Sep 22, 2016
    #3
  4. Matt37
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    Matt37 Super Genius

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    Back in like 2001 right before 9/11 when the market went hard.. I quoted a daycare that had an open claim for a child that fell and hurt his femur but it just had a $30k reserve on it .. nothing had happened with the claim for over 4 months.

    So I quoted it.

    2010 I think it was .. the youngster is now in middle school and playing soccer when he complained he was having severe leg pain.. long story short some blow hard attorney drew it back to when he fell in 2001 and he had to have some kind of reconstruction to his leg .... $565k claim... on an account I wrote back in 2001 for like a grand.. well I think it was actually like $3500.

    statute of limitation for children in PA is 18 years old + 1 year.

    So for some classes you have to be very careful.
     
    Matt37, Sep 22, 2016
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  5. hesse
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    hesse Guru

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    why didn't it go back to the original carrier?
     
    hesse, Sep 22, 2016
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