Access Ins. Company Is In Receivership
As reported in September, 2017, BFW filed a complaint with the Alabama Department of Insurance against Access Ins. Co., an automobile insurer based in Atlanta, GA. The complaint filing stemmed from the mishandling of vehicle damage claims in Alabama. While the investigation was inconclusive as to if this mishandling was related to a staffing and/or technology issues within the company, earlier this month insurance regulators placed this automobile insurance carrier into “receivership,” a process that results in the liquidation of the insurance company. The situation kicked off with an order of impairment dated March 14, 2018 by the Texas Department of Insurance that said Access was an impaired insurer with liabilities greater than its assets. Under the March 13, 2018 liquidation order, all policies not previously expired will be terminated as of April 12, 2018. The Alabama Department of Insurance advised those in Alabama with Access policies to find a new insurance provider and said claims will be paid by the Alabama Guaranty Association. For more information as to how to file a claim with the Alabama Guaranty Association, please contact us:
Boteler, Finley& Wolfe
www.bfw-lawyers.com
3290 Dauphin Street, Ste. 505
Mobile, AL 36606
251-433-7766
Monday, April 2, 2018
Thursday, March 1, 2018
Uninsured Driver Leave Your “Worn” Car Damaged?
As our cars get older, we are left with a decision - do we insure our cars for property damage. Typically, the decision to remove this coverage gets easier as the car gets older - “the cost of insurance to protect the car outweighs its benefit.” Inevitably, though, when you make the tough decision to relinquish this coverage, the unexpected happens - a car accident that was not your fault. Even worse, it is discovered the at-fault driver does not have any liability insurance. Frustrated with this turn of events, you seek out the advice of a lawyer only to be told, it is cost prohibitive to hire a law firm to pursue damages in court for an old clunker. What do you do?
For a majority of states where liability insurance is mandatory, there is a little known administrative remedy that can be found through the state’s department issuing drivers licenses. For example, in Alabama, the Law Enforcement Agency (ALEA) is responsible for administering such a process. By filing a claim form (ALEA Form SR-31 in Alabama) against the uninsured, at-fault driver with the responsible state agency, you are submitting a claim for damages, without the need for filing a lawsuit. Upon receipt of the claim, the state agency will administer the claim and notify the uninsured at-fault driver of the claim. If the claim is not contested by the at-fault driver, his/her license will be suspended until you receive the damages submitted in the claim form. If the claim is contested by the uninsured driver, a hearing will be conducted wherein you can bring your evidence of damages suffered to the officer charged with making the decision. Again, if the hearing officer awards you damages, the uninsured driver’s license is suspended until you are compensated.
This low cost administrative process is very effective for collecting property damage against an uninsured driver. Of course, this administrative proceeding is not effective against those whose driver’s licenses were suspended before/after your accident. Again, remember this is an effective remedy for those who carry “liability only” on their vehicles. Those who carry full automobile insurance coverage need to speak with their insurance carrier and/or a lawyer before pursing a claim against an uninsured driver as it may limit their ability to recover against their own policy.
Boteler Finley & Wolfe
3290 Dauphin Street, Ste. 505
Mobile, AL 36606
251-433-7766
www.bfw-lawyers.com
As our cars get older, we are left with a decision - do we insure our cars for property damage. Typically, the decision to remove this coverage gets easier as the car gets older - “the cost of insurance to protect the car outweighs its benefit.” Inevitably, though, when you make the tough decision to relinquish this coverage, the unexpected happens - a car accident that was not your fault. Even worse, it is discovered the at-fault driver does not have any liability insurance. Frustrated with this turn of events, you seek out the advice of a lawyer only to be told, it is cost prohibitive to hire a law firm to pursue damages in court for an old clunker. What do you do?
For a majority of states where liability insurance is mandatory, there is a little known administrative remedy that can be found through the state’s department issuing drivers licenses. For example, in Alabama, the Law Enforcement Agency (ALEA) is responsible for administering such a process. By filing a claim form (ALEA Form SR-31 in Alabama) against the uninsured, at-fault driver with the responsible state agency, you are submitting a claim for damages, without the need for filing a lawsuit. Upon receipt of the claim, the state agency will administer the claim and notify the uninsured at-fault driver of the claim. If the claim is not contested by the at-fault driver, his/her license will be suspended until you receive the damages submitted in the claim form. If the claim is contested by the uninsured driver, a hearing will be conducted wherein you can bring your evidence of damages suffered to the officer charged with making the decision. Again, if the hearing officer awards you damages, the uninsured driver’s license is suspended until you are compensated.
This low cost administrative process is very effective for collecting property damage against an uninsured driver. Of course, this administrative proceeding is not effective against those whose driver’s licenses were suspended before/after your accident. Again, remember this is an effective remedy for those who carry “liability only” on their vehicles. Those who carry full automobile insurance coverage need to speak with their insurance carrier and/or a lawyer before pursing a claim against an uninsured driver as it may limit their ability to recover against their own policy.
Boteler Finley & Wolfe
3290 Dauphin Street, Ste. 505
Mobile, AL 36606
251-433-7766
www.bfw-lawyers.com
Friday, February 16, 2018
AUTO INSURANCE TOTAL LOSS CLAIM TIPS FOR THE CONSUMER
TOTAL LOSS:
Under Alabama law when the cost of repair for a vehicle is 75% or more of its fair retail value the vehicle is deemed a total loss. [ Ala Code Sec. 32-8-87(d)]. In such a situation the insurance carrier buys the vehicle from the claimant for the fair retail value of the vehicle, not the replacement value, and then applies to the State’s department of motor vehicles for a Salvage Title.
In a total loss situation some claimants find themselves owing more on the car than the fair retail value of the vehicle. This means they may still owe money on a car that they no longer have or can use. Again, the insurance company for the at -fault driver is not responsible for money owed on a vehicle in excess of its fair retail value. If you think you might be in this situation, then immediately check with the bank or finance company that provided the car loan to see if you purchased GAP Insurance when you financed the vehicle. GAP Insurance pays the difference between the fair retail value and the balance owed on the vehicle. The finance company can provide you with information and claim material for this type of claim.
CONSUMER TIP #1:
If you think the adjuster’s valuation of your vehicle is low, ask the adjuster to provide you with the valuation report. Most reputable insurance companies will allow their adjusters to provide a copy of this report to claimants [typically, referred to as a CCC Valuation Report]. Review the valuation report to make sure information about your vehicle was correctly entered. Mistakes in details such as mileage, options, transmission type, and/or engine size can make a difference in the reported fair retail value of your vehicle
CONSUMER TIP #2:
GAP Insurance should be purchased if there is little or no equity in the vehicle; however, check with the dealer and/or finance company to make sure you can drop the GAP coverage once the equity and fair retail value of the vehicle equals or exceeds the finance price. In other words once the “GAP” is gone there is no longer a need for GAP Insurance.
Additional Questions?
Boteler, Finley & Wolfe
www.bfw-lawyers.com
251-433-7766
550 Dauphin Street, Suite 505
Mobile, AL 36606
TOTAL LOSS:
Under Alabama law when the cost of repair for a vehicle is 75% or more of its fair retail value the vehicle is deemed a total loss. [ Ala Code Sec. 32-8-87(d)]. In such a situation the insurance carrier buys the vehicle from the claimant for the fair retail value of the vehicle, not the replacement value, and then applies to the State’s department of motor vehicles for a Salvage Title.
In a total loss situation some claimants find themselves owing more on the car than the fair retail value of the vehicle. This means they may still owe money on a car that they no longer have or can use. Again, the insurance company for the at -fault driver is not responsible for money owed on a vehicle in excess of its fair retail value. If you think you might be in this situation, then immediately check with the bank or finance company that provided the car loan to see if you purchased GAP Insurance when you financed the vehicle. GAP Insurance pays the difference between the fair retail value and the balance owed on the vehicle. The finance company can provide you with information and claim material for this type of claim.
CONSUMER TIP #1:
If you think the adjuster’s valuation of your vehicle is low, ask the adjuster to provide you with the valuation report. Most reputable insurance companies will allow their adjusters to provide a copy of this report to claimants [typically, referred to as a CCC Valuation Report]. Review the valuation report to make sure information about your vehicle was correctly entered. Mistakes in details such as mileage, options, transmission type, and/or engine size can make a difference in the reported fair retail value of your vehicle
CONSUMER TIP #2:
GAP Insurance should be purchased if there is little or no equity in the vehicle; however, check with the dealer and/or finance company to make sure you can drop the GAP coverage once the equity and fair retail value of the vehicle equals or exceeds the finance price. In other words once the “GAP” is gone there is no longer a need for GAP Insurance.
Additional Questions?
Boteler, Finley & Wolfe
www.bfw-lawyers.com
251-433-7766
550 Dauphin Street, Suite 505
Mobile, AL 36606
Wednesday, February 7, 2018
WHAT IS THE "GUEST STATUTE" IN ALABAMA?
Alabama law makes a distinction between a “passenger” and a “guest.” This distinction becomes important if someone is injured or killed in an accident while riding in an automobile and the accident is the fault of the driver of the car occupied by the victim. Section 32-1-2 of the Alabama Code states: “The owner, operator or person responsible for the operation of a motor vehicle shall not be held liable for loss or damage arising from injuries to or death of a guest while being transported without payment therefor in or upon said motor vehicle, resulting from the operation thereof, unless such injury or death is caused by the willful or wanton misconduct of such operator, owner or person responsible for the operation of said motor vehicle.” Simply put, in Alabama a guest in a motor vehicle cannot recover against the owner and/or operator for damages suffered by the guest as a result of the operator’s negligence.
Alabama law defines the term “guest” as one who is invited to enjoy the hospitality of a driver of an automobile only for his or her (the rider’s) benefit without making any payment or conferring any material or tangible benefit upon the driver. APJI 26.05. A passenger can recover from the owner and/or operator for the damages suffered as a result of the operator’s negligence. Alabama law defines a “passenger” as one who is carried in a vehicle for hire or reward or for the material benefit,present or anticipated, of either the driver or of both the driver and rider, which benefit arises out of the transportation provided. APJI 26.04. Alabama law recognizes two situations wherein a “guest” may become a “passenger” and thereby allowed to recover from the owner and/or operator for damages suffered as a result of the operator’s negligence:
1. “A misrepresentation by the driver or another which induces one to become a rider in the automobile causes the rider to be a passenger and not a guest.” APJI 26.25.
2. Also, a guest’s protest against the operator’s driving can change the guest status to that of a passenger. APJI 26.26.
It is important to remember that the guest statute only prohibits a victim’s right of recovery from the owner and/ or operator for “negligence” of the operator. A victim can recover if the operator’s conduct was wanton and or willful or if the accident is caused by someone other than the owner. On this point, potential claims under Dram Shop or Product Liability theories should not be overlooked.
For More Information Contact:
Boteler, Finley& Wolfe
www.bfw-lawyers.com
3290 Dauphin Street, Ste. 505
Mobile, AL 36606
251-433-7766
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