Ask Tim

Abstract: No. Body: ​One question that comes in from time to time is whether a liability insurance policy (either personal, commercial general, or auto) must cover the loss in value of damaged property in addition to the cost of repairs. This comes up a lot with high-end cars, such as the Ferraris, Corvettes, and Maseratis of the world. The car gets hit by an at-fault driver. The car's owner sees the resale value of the car plummeting and wants the other driver to pay for that. So, does the at-fault driver (and therefore the driver's insurance company) have to cover that loss of value?No.The courts…

Abstract: No, probably not. Body: ​Question from an agent: "We recently had an issue with a carrier not accepting a signed lost policy release (LPR) cancellation request we sent them.  My customer service representative (CSR) called them and they said they do not accept LPRs from other agents, and that the insured must call and cancel the policy themselves over the phone.  We tried to circumvent the agent and cancel direct through the replacing carrier, but their response was that they only accept an LPR from one of their agents.  As if things in this business aren’t frustrating enough, I hope this is not a trend…

Abstract: While your agency naturally wants to assist its client, it is not the agency's responsibility to make the lender happy. Body: ​Question from a Big I NY member: We have been receiving requests from the banks to provide a replacement cost estimator to them for re-finance and new loans. Are you aware of any new law or regulation changes regarding this?Answer: This all apparently stems from actions proposed by Fannie Mae and Freddie Mac last winter. However, at the behest of the national Big I and the National Association of Mutual Insurance Companies, they put an indefinite hold on the actions last June. That hold…