AmGuard has been having hassle with delayed claims the place it isn’t promptly responding to inquiries from its prospects or making claims funds. A current jury verdict in Missouri discovered AmGuard responsible of vexatious refusal to pay a hearth, vandalism, and ensuing freeze declare. I beforehand famous related AmGuard conduct from a Washington case in .
Two letters connected to the criticism exhibit the “ghosting”1 The primary letter of November 9, 2020, acknowledged:
This letter follows my makes an attempt to contact you thru e-mail and voicemail respecting the standing of the above matter. I perceive that Jennifer A. Turner of Summit Insurance coverage Group has equally tried to contact you in regards to the above-referenced declare. Thus far, nevertheless, neither you nor anybody else at Berkshire Hathaway Guard Insurance coverage Corporations (“BHG”) has responded to our queries.
As I stated in my e-mail of September 22, 2020, I’ve been retained to symbolize Academy Financial institution, N.A., within the above declare. Academy Financial institution is the mortgage holder and loss payee underneath the coverage issued to Shri Ganesai, LLC (see connected ‘Businessowners Coverage Adjustments’ endorsement).
You’re already nicely conscious that Shri Ganesai, LLC, has made a declare underneath the coverage respecting a hearth loss that occurred on the insured’s property on or about October 2, 2019. My understanding is that BHG continues to be processing and investigating this declare and that it has not but made any protection dedication relative to Shri Ganesai, LLC.
… It has now been over a yr because the topic fireplace loss and Academy Financial institution must have some details about what’s holding up BHG’s protection determination.
On March 4, 2021, the next was written to AmGuard:
Reference is made to that letter dated November 9, 2020, from prior counsel to Academy, Norris Keplinger Hicks & Welder, in search of data on the coverage and declare. The data requests on behalf of Academy have been ongoing since a minimum of September 2020. The requests and calls for made therein are restated and integrated by reference right here. We’re conscious of no response from the insurer. Academy continues to demand supply of all coverage paperwork and any foundation to withhold fee underneath the coverage to Academy.
…
Accordingly, Academy calls for fee in instantly obtainable funds to Academy no later than March 15, 2021. If fee or supply of the doc or foundation on which fee just isn’t owed just isn’t obtained by that date, Academy will start authorized motion….
I hope these attorneys didn’t maintain their breath anticipating a response. We’ve got seen one of these non-response from AmGuard in different instances.
After the lawsuit was filed in April 2021, AmGuard lastly made partial funds.
The jury verdict final week discovered for the policyholder and the loss payee. The jury awarded contract, vexatious refusal, and legal professional’s charges damages towards AmGuard.
Insurance coverage firms owe an excellent religion obligation to be immediate when adjusting losses and responding to claimants. Most of these jury verdicts maintain insurance coverage accountable after they fail that obligation.
,