NeSLA Logowsletter
 

July 2016

In This Issue

2016 Board Members
  
Lawson Thompson - President
Frontier Adjusters
770-951-0044

Robbie Maples - 
Vice President
Cunningham Lindsey
770-828-0098

Marilyn Roberts - Treasurer
Chubb
678-795-4293

Griffin Rogers - Secretary
Crawford & Company
404-300-1262

Gwendy Schulte - Asst Secretary/Treasurer
OneBeacon Insurance
781-332-8688
  
  
Executive Board
  
Chris Nichols - Past President
PLS Claims
770-381-8855
  
Bill Cartwright - Eagle Adjustment Services, Inc.
770-928-9686 
  
Bob Murner - McLarens
678-296-9634

Joel Steber - Engle Martin
678-553-4438

Brian Richey - Custard
678-602-9061
  
John Southall - Historian
FM Global - retired
770-331-8572
  
Howard Zandman - 
Financial Advisor
Habif, Arogeti & Wynne
404-814-4915  
Quick Links
July Luncheon
President's Message
 
"Opportunity is missed by most people because it is dressed in coveralls and looks like work."-Thomas Alva Edison
  
  
Thanks to Robbie Maples for chairing the June meeting in my absence. Thanks also to Dan Heyer, Pete Craig and EFI Global for the sponsorship as well as the lesson on window  deflection.
  
As we pause during the summer to rest and recreate, we on the board hope to keep mindful of the work that remains before us and the opportunities for growth which exist for our organization. 

Membership in a thriving, prominent  professional fellowship is the hallmark of all recognized professions in developed countries. Physicians, attorneys, engineers, accountants and many others rely on membership in their professional colleges to enhance their  prestige and to exhibit a standard on which a lay public can rely.
  
The Southern Loss Association sponsors continuing education and professional development in order to give our members an opportunity to meet the "standard" for excellence recognized by insurers, agents, contractors, and
especially the insurance buying public. We hope all of you will take advantage of the opportunity to sign up for our August 11th Seminar at Top Golf, as well as our July 14th luncheon, featuring Jim Beck of the Georgia Underwriting Assn.
  
We appreciate the effort taken to attend these meetings, but the opportunities for personal and professional growth are well worth it.  Looking forward to seeing you there.
  
  
Regards,
  
  
Lawson



       
Join us for the July 14th Luncheon
and 1 hour of CE
The Diner at North Point
 
Our speaker this month will be Mr. Jim Beck of Georgia Underwriting Association. Mr. Beck is currently serving as President of the GUA and will be speaking on his experiences within the industry during his tenure. 
  
   REGISTER NOW   
   
  

 Schedule of Events

  

07/14/16 - July Luncheon

 

08/11/16 - 24th Annual SLA CE Seminr

 

09/08/16 - September Luncheon

  ha&w old ad frotier old ad   
  

Welcome to New Members

We'd like to congratulate a new member to our organization:

 

Associate Members:

 

Jacqueline Randolph - EFI Global

 

2015 C J Hester ad

 

 

 

             MEI revised 2016

 24th Annual Southern Loss Association Property Seminar

This event is intended for the education of ADJUSTERS, CLAIMS MANAGERS, RISK MANAGERS & SLA MEMBERS ONLY, PLEASE!!!
                        
We are pleased to offer 8 hours of Georgia Continuing Education Credit; including 1 hour of Ethics.

Registration is FREE for FULL MEMBERS! Your membership status will be verified upon registration--if you still need to pay your 2016 dues please visit www.southernloss.com to pay online. Contact us with any questions.

WE'RE BACK AT TOPGOLF THIS YEAR! 

After our Education Seminar concludes we will have a TopGolf and Happy Hour event open for all attendees! If you've never been to TopGolf before you're in for a treat--and you don't need to be a golfer to have a great time! There is no additional registration fee to join us for some golf, fun, and a cocktail but please be sure to register as we will need a headcount for the facility. 
    Registration & Breakfast will begin at 7:30 AM
Program Begins promptly at 8:00 AM
 
Speakers:
"Insurance Professionals and the Role of Social Media"

Presenter: Melinda Schmeideknecht, Reasonate Marketing

"Lloyds Marketplace"

Presenter: Rodney Smith, Lloyds of London

"GA Insurance Updates in Law and Practice"

Presenter: Commissioner Hudgins

"Contesting Hail Claims"

Presenter: Jack Halliwell, Halliwell Engineering

"The Appraisal Process"

Presenter: Jon Held, JS Held


Expanding Ownership Restrictions Under Georgia's Valued Policy Law
  
By Eric R. Mull
Partner, Drew Eckl & Farnham, LLP

Georgia's Valued Policy Law provides that when a home is wholly destroyed by fire, the amount of insurance listed in the insurance policy shall conclusively establish the value of the structure or building. Several conditions must be met prior to the statute being applicable, including: (1) the insured must be a natural person; (2) the insured property must be a one or two family residential building or structure; (3) the home must be wholly destroyed by fire; (4) the insured must not have engaged in fraud; (5) the loss must occur more than 30 days after the original effective date of the policy; (6) the policy cannot be a builder's risk policy; (7) the insured property must not be insured under a blanket form coverage insuring multiple properties; and (8) there must not be multiple undisclosed properties on the same property. 
      
As evidence of Georgia's thriving business friendly climate, The Georgia General Assembly recently amended these requirements with the passage of Senate Bill 137. Specifically, SB 137 expands the application Georgia's valued policy law, codified in O.C.G.A. ยง 33-32-5, to include "any legal entity wholly owned by a natural person or persons." Thus, the revised law applies to corporations and other legal entities owned by one or multiple individuals. According to State Senator Bill Heath, Senate Bill 137 "expands Georgia insurance law to allow companies to collect property insurance payouts in full for residential, single, or dual family units in cases of total losses by fire. Current law excluded this small section of the residential market."            

At first glance, it appears that the intent of SB 137 is to extend the valued policy law to individuals who may own several rental properties as an individual operating as a DBA or a small family business. A reading of SB 137's bill summary supports this interpretation, reflecting that "Senate Bill 137 amends provisions for policies only covering fire loss so that a 'policy owner' includes any legal entity owned by one or more individuals and not just individuals themselves." However, a comparison of prior versions of SB 137 to the unanimously passed final version reflects that the intent is to apply Georgia's valued policy law to allow all defined corporations to collect property insurance payouts in full if a residential unit is completely destroyed by fire. Specifically, prior proposed versions of the language at issue include "or to any limited liability corporation" and "or to any limited liability corporation owned by three or less natural persons." However, the final language does not specify the required number of individual owners or that the legal entity is limited to only a limited liability corporation.

In application, any business, whether incorporated or not, which is "wholly owned by a natural person" is now afforded coverage under Georgia's valued policy law if the loss otherwise qualifies under the statute and factors enumerated above. As such, from an insurer's perspective, it is no longer sufficient to eliminate the statute's application when a policy holder is anything other than an individual. Rather, an analysis must be conducted to determine if the legal entity is wholly owned by a natural person or persons. Moreover, an insurer must determine all owners of a legal entity. Application of the new law will certainly raise additional concerns, such as when an insured entity is owned by multiple partnerships or limited liability companies. The required analysis will include an evaluation of each owner, which can be voluminous and time-consuming. Inevitably, questions will arise such as how many layers of an insured's ownership structure an insurer must investigate in order to determine the "ultimate ownership." For now, insurers should develop a standard list of questions developed to discover and understand the "ultimate ownership" of an insured entity. These questions should be addressed early on in the claim process when it is determined that a total loss has occurred.
           
Finally, insurers should understand that the recent changes to Georgia's Valued Policy Law do not otherwise effect it's application. Specifically, Georgia's Valued Policy Law only applies when the insured premises are insured for specific limits. Expanding the ownership criteria from "natural persons" to "any legal entity wholly owned by a natural person or persons" does not void the limitation that the insured property cannot be insured under a blanket form coverage insuring multiple properties. This distinction is important given the recent change in the law, as it is not uncommon for companies to insure multiple properties under a blanket form coverage. While companies may be subject to the new Valued Policy Law, the manner in which their property is insured could effectively eliminate the law's application to many companies.
           

If you would like more information about this topic, please contact Mr. Mull at 404-885-6164 or e-mail him at emull@deflaw.com.

This newsletter is a publication of Southern Loss Association, Inc., P.O. Box 421564, Atlanta, GA 30342. The articles written in the newsletter are in a general format and are not intended to be legal advice applicable to any specific circumstances. Legal opinions may vary when based on subtle factual differences. All rights reserved. 
BCS old ad
hsno old ad   
Become a Member of Southern Loss Association
 
Would you like to join Southern Loss Association or know someone who is interested?  We can now take your membership application right on line! 
 
Membership is limited and subject to approval by the board of directors and its membership body.  Please read all the terms on the application!
 
 

EFI old ad   
 
We thank our advertisers for their support.  If you would like to advertise with us, please contact us at southernloss@gmail.com.