Mutual Release - Terminated Public Adjuster

[Gen_xer1983]

What is the name of your state? AZ

Hello all!

This is my first time posting. So bare with me as I learn the ropes and my way around.

I will first make this short and for anyone who needs details can ask me questions. That will help me process things much better. So thanks in advance.

OUR CASE: SUMMARIZED

November 11, 2008 - House-fire. It was determined accidental

December 18th, 2008, we hired a Public Adjuster (PA) because the Insurance company was delaying the walk-through of the non-salvageable content. Not returning calls and canceling the walk through.

March 5th, 2008 we terminated the PA . We were not happy with his work, he did not follow through on some of the things he promised, did not give us timely updates (we had to keep on him), refused to put a certified signature at the bank and insists we sign the checks over to him then he writes us a check. In addition, he cancelled appointments we made to discuss our claims. Sent the structural claim without our approval and did not include the two bedrooms, bathroom, hallway and several other damages. When we asked to speak with him about going forward he put us off and never tried to reschedule even after we asked him to work things out with us.

After he was terminated him, we sent a copy to the Insurance Company. But they still refused to work with us, until I mentioned the Dept. of Insurance.

After the PA got his termination letter he immediately contacted the Insurance Company letting them know that he still has an interest in our claim. We are not sure if he has put a lien on our claim or not.

Despite our demands to honor the Termination, the Insurance Company continues to keep him in the loop and said they have to include his name on all checks until they receive a release from him.

March 24th, 2008 - We hired an Attorney. All we wanted to do was pay a fair amount to the PA that would end the contract.

April 18, 2008 - The PA accepted 4000.00 which is 6,000.00 less than what he originally invoiced. We included a letter basically protecting our rights. The PA refused to sign and sent a “Mutual Release.” Our Attorney advised us that if we sign the Mutual Release it could allow the Insurance Company to blame both us and the PA and deny our claim. And if that happened we would have to hire an Attorney (he does not wish to take our case) and file a bad faith lawsuit against the PA and the Insurance company.

May 5th, 2008 – PA refuses our terms and conditions and sends a “Mutual Release” basically stating that he is not liable for any damages, we cannot sue him for any damages, and vice versa. The Insurance Company continues to demand the Release.

Our Attorney advised that if we sign this Mutual Release, it could prompt the Insurance Company to blame the PA. And since we released him from the claim fully without taking any responsibility, that would also give reason to blame us and then deny our claim.

May 17th, 2008 – We file a complaint against the Insurance Company for:
1. Delays, it has been 7 months and no dwelling claim;
2. Refusing to honor the Termination of the PA
3. Refusing to write the checks without the PA's name
4. Continuing to include the PA in our Claim for which we have no idea wether they are communicating or not.

Against the PA:
1. Refusing to honor the termination letter
2. Continuing to communicate with the Insurance company after he has been terminated.
3. Not CC(ing) us on any of his communications or work that still needs to be done since he claims to be our represntative.
4. Other complaints that gave us reason to fire him.

May 18th, 2008 – Then we get this curve ball… Our Attorney informs us that the PA has agreed to put a clause into the Mutual Release stating that:

Notwithstanding the foregoing, client may pursue any potential claim against PA in the event that Allstate Insurance Company makes any allegation or claim against PA, or names PA as a non-party at fault in any potential litigation, arising out of PA’s representation of client in connection with the subject property damage claim.

OUR DILEMMA:

We seem to have three options here:

Option 1: Settle for a lower amount and sign the Mutual Release: The release seems okay with that statement in there but it doesn't say anything about the Insurance Company blaming US when it was the PA's fault. This is where the Dept. of Insurance's investigation will reveal if the PA or Insurance Company is at fault for delays etc.

Option 2: Honor the contract and pay the PA his 10%. This way no one signs away their rights. With the Dept. of Insurance involved, I would think both the PA and the Insurance Company would ensure they do the right thing. My question is, can we force the PA to honor his end of the contract? Can Dept. of Insurance make him?

Option 3: General Release and pay his original 10,000.00 invoice. Have him sign a general release that states he is releasing us from the contract and payment does not mean we are not agreeing to his charges. Looks like we back at Option 1.

Please advise... Thanks

 

[Gen_xer1983]

I just recieved an update from the Department of Insurance with a letter from Allstate stating:

1. We have instructed Allstate to hold off on writing the dwelling check - Lie
2. Allstate me with myself, my H and the PA on the day after the fire - Lie... PA was hired in December...
3. Allstate said they will write the check and issue to the PA for management.

The Dept. of Insurance has not even met with us to hear our side and wrote a letter telling us that Allstate did not break any laws... And they are going to write the check and issue to the PA.

Just an added note... we terminated the PA February 20th 2008. And it has taken Allstate 5 mos to issue a check for the dwelling? What can we do about this? They are lying!

I just don't know what to do...

 

[claimlaw]

Question 1. is: did you "assign" your right of recovery to the PA and if so, is it and/or the contract revocable?

Start by posting the PA's contract language including any modifying or collateral agreements that you signed.

Question 2. assumes that your Date of Loss is November 2007 not 2008 as indicated in your post. Question 2. is: Has Allstate, at any time, alleged that you[PA] have waived any rights or failed to comply with any policy language up to and including the date you filed your complaint[litigation or DOI complaint]?

If yes, what was it and, what was your response?

Claimlaw

 

[Gen_xer1983]

Question 1. is: did you "assign" your right of recovery to the PA and if so, is it and/or the contract revocable? I do not know what this means... so must not of signed it.

Start by posting the PA's contract language including any modifying or collateral agreements that you signed.

On or about the 11th day of November 25th 2007, the undersigned (insured) sustained a loss by: insured’s address and hereby authorizes PA_________ to assist the insured in negotiating and settlement of only their insurable loss on behalf of the insured with the insured’s company or companies or any other responsible party.

The insured further directs all involved insurance companies, mortgage companies, or other responsible parties to negotiate, correspond with, mail or overnight deliver or otherwise provide documents solely to PA__________ on the insured’s behalf and to include the name of the PA ____________as join payee on all checks and drafts issued as a result of the said loss.

PA___________ insurance loss consultants, agrees to assist in the adjustment of the aforementioned insured loss and for services rendered PA____________is to receive a fee equal to 10% of the adjusted structure claim and 10% of the adjusted personal property (contents), business personal property (contents), loss of rents or business interruption claims, payable at the time payment is received by the undersigned.
here is no fee on advances already paid.

Signatures


Question 2. assumes that your Date of Loss is November 2007 not 2008 as indicated in your post. Question 2. is:

Yes

Has Allstate, at any time, alleged that you[PA] have waived any rights or failed to comply with any policy language up to and including the date you filed your complaint[litigation or DOI complaint]?

No, not that I know of. But I just recieved a letter back from the Dept. of Insurance. The Dept. of Insurance says that All state has broken no laws. I read Allstate's letter stating their reasons for delay.

1. We (my H and I told them to put a hold on issuing the payment -- they don't state wether for structure or dwelling) -- This is false, we simply asked Allstate not to include the PA's name on any of the checks.

2. Allstate met with me, H and PA the day after the fire -- This is also false, we didn't hire th PA till December 18. A month 1/2 after the fitre.

3. That we had concerns over the settlement -- This is false, unless the PA did, but PA never said anything about it. We were fine with the content settlement. And as for the dwelling settlement. Allstate didn't make a formal offer for settlement, so how could we have any concerns? They kept stalling us on thier end trying to get estimates for the footing, and the Alarm system. Until they couldn't so they asked us to do it. We have many letters asking them when they were going to get moving on issuing the check.

If yes, what was it and, what was your response? I am going to respond to the letter this weekend... basically stating the what I just posted above. Should I add anything else?

Claimlaw

Thank You Claimlaw... sorry I havn't been around. Its just been sooo busy.

 

[Mudslinger411]

How Long?

How long does a contract with a public adjuster remain in effect? The reason I ask is because I am fed up with mine, I have been pretty much through the entire process. Brief history, I had a house fire in August of 2008 I hired a public adjuster for no other reason than my sister worked for the guy and she insisted that I hire him to deal with the insurance company versus doing it myself. Foolishly I hired him and he was great until I signed that contract after that everything was delayed by his office. It seems everytime you call the person you need to speak to at that moment is on vacation and this has been the case for the entire length of the process. Anyway, everything has been taken care of as far as the house beig rebuilt and the contents being covered and so on. Where I stand now is my public adjuster told me I have 6 months from the date of loss to submit my receipts for the depreciated value of my contents. I found out this was a lie and that I have two years, I recently submitted those receipts and I am currently waiting for the final check however having a public adjuster means I have to take the check to him. The problem with that is he doesn't do anything with the checks as I learned going through this and often times the check becomes stale and the insurance company has to reissue another. I had multiple problems with my public adjuster, there were several items missing from my home and never made it on the content list including all of the clothes belonging to my infant daughter. Instead of getting her clothes back from the cleaners we received mulitple pillows that did not belong to us almost as if they did it to satisfy the weight coming back versus what they took in. I immediately brought my issues to the attention of my PA and he very rudely cussed me out and told me I was being petty. Petty? My daughter had clothes when the house caught fire and nothing of her's was returned upon moving back in. He also told me I was being petty when I brought up the other missing items and then proceeded to tell me they have no record showing that I made them aware of the missing items. The funny thing is I have the e-mails that were sent to them telling them of the problems and the response I got back from their office so how could they possibly have no record? How do I fire this PA? He has agreed to give me a mutual release agreement but that was over 3 weeks ago and everytime I call the person I need to talk to is out of town. It's been over two years since my house fire so exactly how long does his stupid contract remain in effect?

 

[Banned_Princess]

How long does a contract with a public adjuster remain in effect? The reason I ask is because I am fed up with mine, I have been pretty much through the entire process. Brief history, I had a house fire in August of 2008 I hired a public adjuster for no other reason than my sister worked for the guy and she insisted that I hire him to deal with the insurance company versus doing it myself. Foolishly I hired him and he was great until I signed that contract after that everything was delayed by his office. It seems everytime you call the person you need to speak to at that moment is on vacation and this has been the case for the entire length of the process. Anyway, everything has been taken care of as far as the house beig rebuilt and the contents being covered and so on. Where I stand now is my public adjuster told me I have 6 months from the date of loss to submit my receipts for the depreciated value of my contents. I found out this was a lie and that I have two years, I recently submitted those receipts and I am currently waiting for the final check however having a public adjuster means I have to take the check to him. The problem with that is he doesn't do anything with the checks as I learned going through this and often times the check becomes stale and the insurance company has to reissue another. I had multiple problems with my public adjuster, there were several items missing from my home and never made it on the content list including all of the clothes belonging to my infant daughter. Instead of getting her clothes back from the cleaners we received mulitple pillows that did not belong to us almost as if they did it to satisfy the weight coming back versus what they took in. I immediately brought my issues to the attention of my PA and he very rudely cussed me out and told me I was being petty. Petty? My daughter had clothes when the house caught fire and nothing of her's was returned upon moving back in. He also told me I was being petty when I brought up the other missing items and then proceeded to tell me they have no record showing that I made them aware of the missing items. The funny thing is I have the e-mails that were sent to them telling them of the problems and the response I got back from their office so how could they possibly have no record? How do I fire this PA? He has agreed to give me a mutual release agreement but that was over 3 weeks ago and everytime I call the person I need to talk to is out of town. It's been over two years since my house fire so exactly how long does his stupid contract remain in effect?

Start your own thread if you have a question. dont open dead threads from 2008.

 

[Mudslinger411]

Thanks

Thank you for your reply but the site would not allow me to post anywhere but here. Thought maybe I could get some advise by doing it this way.