Problems viewing this email? Click Here June 16, 2016      Q&A of the Week Settlement for Loss of Cell Phone A Guam subscriber recently asked the following question: A cell phone is part of a covered loss in a homeowners policy. The insured obtained the cell phone at a subsidized cost of $99 by agreeing to a two-year service contract with his carrier. When the loss occurred, the insured was midway through the two-year service contract. To replace the cell phone, the insured will have to pay the unsubsidized price of the replacement phone of $849. The insurer has offered settlement based on the subsidized, contract price, which is not available to the insured. We and the insured believe that the loss should be valued at the unsubsidized price of $849. Who is correct? ANSWER:Personal property is valued at actual cash value. The original cost of the property is immaterial; settlement is at actual cash value at the time of loss, and not more than the cost to repair or replace. The subsidized cost of the phone is not the actual cost of the cellphone—it is a special arrangement as part of the contract. If the phone is not repairable, then the cost of a phone of the same age is what is paid; with actual cash value depreciation is taken into account. A brief internet search shows that phones depreciate rapidly at first: 30-50 percent immediately, then an additional 4-5 percent a month, depending on the type of phone. Read More    What's New This Week in FC&S Roof Surfacing Cosmetic Damage Exclusion – Windstorm or Hail ISO recently created two endorsements: Cosmetic Damage Exclusion – Windstorm Or Hail, HO 06 43 04 16; and Roof Surfacing Cosmetic Damage Exclusion – Windstorm Or Hail, HO 06 44 04 16. Read More    Litigation Watch Notice-Prejudice Rule to the No-Voluntary-Payments Provision Not Extended The insured claims the insurer delayed or denied a claim for benefits in bad faith after the insured settled a claim against it without contacting the insurer. The case is Travelers Prop. Cas. Co. of Am. v. Stresscon Corp., 370 P.3d 140 (Colo. 2016). This case involves a subcontractor who was sued by its general contractor for delay damages caused by the subcontractors work. The subcontractor had an insurance policy through Travelers Property and Casualty Co. of America. The policy included a "no-voluntary-payment" provision among many other provisions. The no-voluntary-payments provision of the policy provides that the insured, except at its own cost, will not voluntarily make a payment, assume any obligation, or incur any expense covered by the policy without the consent of the insurer. Read More    Fraud of the Week Staged Accident Fraud – Oklahoma AMOUNT: Unknown An Oklahoma man has been sentenced to eighteen years in prison after being convicted of nine felony counts of submitting false insurance claims. Read More        FC&S Ask the Experts Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you? Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials). Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update. Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here.    Maximize Your FC&S  Online Subscription! FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@alm.com, to set one up! They only take 30 minutes, a small investment of time that will help you learn all that FC&S Online has to offer.    Contact Us As always, your comments and questions are welcome. Contact us at: FC&S Department Phone: 800-543-0874 Fax: 859-692-2293 Email: eAlerts@nuco.com The Zalma Insurance Claims Library   Insurance Claims: A Comprehensive Guide The only source you'll need to successfully handle insurance claims from start to finish. More Info Construction Defects Coverage Guide Your single-source for identifying, insuring, investigating, prosecuting, and defending cases that result from construction defect claims. More Info Mold Claims Coverage Guide This guide will allow you to handle mold insurance claims and litigation resulting from mold or fungi related disputes with confidence. More Info For more information about these titles Click Here

FC&S Team Kelly Maheu, J.D. Publisher   Diane W. Richardson, CPCU Consulting Editor Christine G. Barlow, CPCU Managing Editor, FC&S   Diana B. Reitz, CPCU, AAI Consulting Editor David D. Thamann, J.D., CPCU, ARM Managing Editor, FC&S Bulletins   Emily Brunner Online/Print/Production Editor Susan L. Massmann, CPCU Managing Editor, Electronic Publications   Tosha Brinkman Marketing Manager Barry Zalma, Esq., CFE Contributing Editor   Donna Cozatchy Creative Director

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