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Archive through July 22, 2000Ghostbuster7-22-00  3:58 pm
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Posted on Tuesday, August 29, 2000 - 8:22 pm:   

Here is an article I pulled off the web....

Insurance associations blast plan to re-open quake claims:

8/23/2000 SB 1899, a bill authored by California Senate President Pro Tempore John Burton will result in a Northridge earthquake claims lawyer boondoggle that attempts to unravel all satisfactorily paid claims according to Dan Dunmoyer, president of the Personal Insurance Federation of California (PIFC). ``Of the over 600,000 insurance claims made as a result of the Northridge earthquake, the insurance industry has settled 99.9% and paid out more than $15.3 billion in claims payments,'' Dunmoyer explained.
``SB 1899 is an attempt by plaintiff's lawyers to pass a bill that will re-open 600,000 claims files,'' Dunmoyer continued. ``It is nothing but a get rich scheme for plaintiff's lawyers who stand to make hundreds of millions of dollars on the backs of satisfied customers who have received payment for their Northridge losses,'' Dunmoyer said.

The National Association of Independent Insurers NAII also opposes the bill because they contend it would invite fraud and rewrites insurance contracts entered into more than six years ago.

SB 1899 lifts for one year the expired statute of limitations on damage claims from the 1994 earthquake. The bill applies to individuals and businesses who have made previous contact with their insurers, and who have not reached a previous court resolution or a written settlement on the claim in which the insured had legal representation.

"This bill clearly violates the constitutional prohibition against legislation that impairs settled contractual rights and obligations," said Sam Sorich, vice president and western regional manager for NAII. "NAII urges the Legislature to halt the bill's progress."
Posted on Thursday, August 24, 2000 - 5:47 pm:   

Ladies and gentlemen , I believe you are missing the point . Some of these claims were after the adjuster had been out to the properties and messed up on the initial inspection. They paid them but did not do a complete inspection. Then they went to repair their house and found hidden damage and by that time the statue had run. Granted the statue goes to 7 years but how long did it take for those claims to be adjusted.Not only that some of the reports from Calif. were redrafted. We all know that. Look at the 20/20 report that was done back in 1998. Just look at the classaction in Calif. 10000 claims for one carrier.
Workingstiff (Workingstiff)
Posted on Thursday, August 24, 2000 - 5:03 pm:   

Love those politicians. Extending the statute one year from Jan 2000 effectively extends the statute for 7 years from the date of the Northridge occurrence.

So maybe those Loma Prieta quake victims might decide to go to their representatives and senators and want THEIR statute extended. Then maybe the Hector Mine quake victims might decide they want THEIR statute extended. Wow. We could ALL retire on California earthquake reopens!!!
Dale Strain
Posted on Thursday, August 24, 2000 - 1:16 pm:   


Living in Los Angeles, I have the advantage(?) of being able to watch some of the Senate hearings on cable TV.

I was able to see that most of the senate participants were either 1) not very aware of insurance basics, 2) more interested in hearing their own voice, 3) not very smart.

They fail to grasp the concept that assertions do not equal fact.

Not all claims are meritorious.

Not all "violations" were factually correct.

Having said that, if this fiasco leads to a review process that helps policyholders get the correct settlement due them, it a good thing.

I will probably retire working Northridge EQ.

Dale Strain
Posted on Thursday, August 24, 2000 - 12:52 pm:   


Actually, the wording of Senate Bill 1899 allows for the extension of the statute for one year from January 2000, and only applies to the Northridge earthquake. You can get the full text of the bill at

Cecelia (Cecelia)
Posted on Thursday, August 24, 2000 - 12:24 pm:   

Here's the "real deal" regarding Calif. The bill WILL pass that will allow the statute of limitations for the Northridge quake to be extended for 7 years. The carriers' position is that the insurance policy is a contract between two entities and that contracts states that a statute of limitations of one year is the agreed period.

The carriers do not plan to let politicians mandate their positions with respect to their contracts with private individuals. They will probably not voluntarily extend the statute date 7 years. I was told they WILL take this legislation to the California Supreme Court.

Part of the problem is that if the statute of limitations is extended for claims from the Northridge quake, what is to stop the statute from being extended to 7 years for any subsequent earthquake? How about for any subsequent claim? And if California allows a 7 year statute, how long before the rest of the politicians across the country jump on the bandwagon and do the same for "their" constituency?

California carriers will fight this legislation to the death. But I don't think we'd better look forward to any EQ claims reopening anytime soon.
j. rollins
Posted on Wednesday, August 23, 2000 - 10:45 pm:   

California senate just past a bill that will allow 600000 claims to be reopened from the big one. See the story in the Sacramento Bee.

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