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Latest from Zalma on Insurance

Hard Work Pays and Default Judgment Entered for Failure to Pay Additional Premium Starr Underwriting Agency, Inc., (“Starr”), sued S A S Services Group, Inc. (“S A S”) alleging one claim for breach of contract for failure to pay additional premium on Workers’ Compensation Premium after audit. In Starr Underwriting Agency, Inc. v. S A S Services Group, Inc., No. 2:21-cv-02622-CAS(JPRx), United States District Court, C.D. California (September 20, 2021). INTRODUCTION S A S was…
A Video Explaining the Need to Gather Evidence to Prove Fraud See the full video at https://www.rumble.com/zalma and at https://youtu.be/nC6qi-AtCe4 Evidence is broken into two major categories: direct and circumstantial. Direct Evidence Direct evidence is proof that tends to show existence of a fact in question without the intervention of the proof of any fact.  It includes testimony that tends to prove or disprove a fact in issue directly, such as eye-witness testimony or a…
Actual Malice in Republication of Defamation by Implication Devin Nunes, a Member of Congress from California, appealed an order of the district court dismissing his complaint alleging defamation and conspiracy claims against Ryan Lizza and Hearst Magazine Media, Inc. The claims are based on an article published in Esquire magazine and republished after suit was filed claiming the article was false and defamatory. In Devin G. Nunes v. Ryan Lizza, Hearst Magazine Media, Inc., No.…
A Video Explaining the False Claims Act and How Insurers Can Take Advantage of it to Deter Fraud See the full video at https://www.rumble.com/zalma and at https://youtu.be/J2UXvt64pRU The False Claims Act, also known as the “Lincoln Law,” dates back to the Civil War. President Lincoln signed the act into law in 1863 because war profiteers were selling the Union Army shoddy supplies at inflated prices. The original law included qui tam [“Qui tam” is an…
Insurers Frustrated by Lack of Prosecution for Insurance Fraud Proactively Sue Chiropractors they Claim Defrauded the Insurers Insurers, victims of insurance fraud, see little or no prosecution of those who defraud them. State Farm, not willing to wait, proactively sued defendants James Marshall, D.C. and Marshall Chiropractic, LLC (collectively “Defendants”) for fraud. After discovery was completed the Chiropractors moved for summary judgment seeking dismissal of State Farm’s suit. In State Farm Guaranty Insurance Company, and…
A Video About Selecting and Working With Counsel See the full video at https://www.rumble.com/zalma and https://youtu.be/dTu6XuH6vHs In instances where insurance claims may entail litigation, insurers must move quickly to engage counsel. When an attorney is retained to defend a person insured, the fact should be documented in writing by the attorney, the adjuster, and the insured who is to be defended. Before an insurer retains an attorney to represent an insured to defend an…
A Video Explaining Evaluation & Settlement See the full video at https://youtu.be/OV06h8SdKIU and at https://www.rumble.com/zalma Case evaluation is necessary to the efficient operation of a third party liability claims department. The evaluation should be completed as soon as reasonably practical after the completion of a thorough investigation. A quick resolution and payment of the claim will result in a lower amount of settlement with the claimant and lower expenses incurred by the insurer. It should…
Warranty Statute Does Not Apply to an Exclusion Steven Kutchera bought a homeowners policy from defendant State Farm Fire and Casualty Company. In 2020, Kutchera submitted a claim to State Farm under that policy, alleging that his garage collapsed because of the weight of ice and snow on the roof. State Farm denied the claim on the ground that Kutchera had been using the garage for business purposes, so it was excluded from coverage. In…
A Video About the Birth & Growth of the Tort of Bad Faith See the full video at https://rumble.com/zalma and at https://youtu.be/RMk_et9UDZ4 Fletcher v. Western Life In Fletcher v. Western Life Ins. Co., 10 Cal. App. 3d 376, 89 Cal. Rptr. 78 (1970), the plaintiff, Fletcher was, at the time of trial, a 41-year-old father of 8 children, seven of whom were still in school. Defendants’ conduct was premeditated, continuous and persistent (citation) and defendant…
It’s Not Nice to Lie to Your Insurer An insurance company sought a judgment that an automobile insurance policy issued to a mechanic does not provide coverage for an accident involving the mechanic. After examining the mechanic under oath, the insurance company moved for summary judgment, arguing that the policy contained a business purpose exclusion for accidents occurring while road testing a vehicle, which the mechanic stated he was doing at the time the accident…