Brokers: too sexy for themselves?

Brokers: too sexy for themselves?

Brokers: too sexy for themselves?

The flaming snake slithered away through the grass, passing by a nearby brush. The brush went up in flames, setting the woman’s house on fire in the process.

The house burned down to the ground and caused some damage to the neighbour’s home in the process.

What happens when she calls your brokerage and asks about coverage?

Forum shopping anyone?

The U.S. Supreme Court is reviewing whether a home insurance policyholder leading a class action lawsuit can restrict the amount of money the entire class may receive to less than $5 million, just to defeat the insurer’s attempt to move the matter into federal court.

After suffering property damage in a 2010 hailstorm, Greg Knowles filed a class action lawsuit in Miller County, Arkansas, against the Standard Fire Insurance Company, claiming the insurance company underpaid him. Knowles said the insurer didn’t pay a “contractor’s retention fee,” an extra 20% typically assessed by contractors for repairs on damaged property.

The insurer said the amount of money the class is disputing would total more than $5 million, which would move it into the jurisdiction of a federal court.

However, Knowles “stipulated” that members of his claim would not receive more than $5 million, just so that his matter would be kicked back into the state court. The Supreme Court will review whether the lead plaintiff can make such a binding “stipulation” on the absent class members.

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