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  #261  
Old 05-18-2018, 01:43 PM
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tometom tometom is offline
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and VA beat me to it.
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  #262  
Old 05-18-2018, 02:19 PM
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Vorian Atreides Vorian Atreides is offline
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  #263  
Old 05-18-2018, 02:56 PM
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Quote:
Originally Posted by Vorian Atreides View Post
If a policyholder does take Lemonade to court on a disputed claim, they are highly likely to win if there's any ambiguity in the interpretation of the document
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Originally Posted by tometom View Post
As far as i'm aware, pretty much every state typically sides with the consumer when it comes to ambiguous policy language, particularly on Personal Insurance
Yes, ambiguity is interpreted in favor of the party who did not draft the contract. But the red flags I mention involve unequivocal terms which are devoid of ambiguity.

For example, accusation is an all-encompassing term which includes meritorious lawsuits; false accusations; perjury; reports to police (regardless of their falsity); accusatory statements sent to the employer, credit bureau, or professional organization; publications in a newspaper or social network; to name a few. Absent any distinctions in that clause, Lemonade's catch-all term of accusation leaves no room for different interpretations. Where's the ambiguity?

Also, whether or not courts tend to favor the consumer is largely inapplicable when arbitration is involved. That's why I said that overturning an arbitrator's decision is much harder than reversing other rulings. The court could not reasonably refute Lemonade's argument that "Look, the insured willfully and knowingly agreed upon my unequivocal, clause of arbitration which I stated in plain terms".

Last edited by pragmatist; 05-18-2018 at 03:00 PM..
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  #264  
Old 05-18-2018, 04:07 PM
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tometom tometom is offline
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I can't speak for VA, but I wasn't responding to you, i was answering great3981. You failed to mention ambiguity in your post and as i said, i honestly didn't read Lemonade's website that closely, so i thought it was a point that needed to be stated.

I don't disagree with your specific points about the contract. Those are issues that the consumer could certainly have. However, I'd almost guarantee there would be lawsuits over them (i'm already imagining people saying something like, "I hadn't considered that type of accusation when i signed this contract"). Will the court rule in Lemonade's favor . You'd think so because as you said, "its stated in plain terms", but courts don't always see it that simple.

as far as arbitration, i have no experience. Aren't they going to have an issue that they say they are going to use "Commercial Arbitration Rules" in a Personal Lines environment?
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  #265  
Old 05-18-2018, 04:39 PM
pragmatist pragmatist is offline
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I can't speak for VA, but I wasn't responding to you, i was answering great3981.
Got it.

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as far as arbitration, i have no experience. Aren't they going to have an issue that they say they are going to use "Commercial Arbitration Rules" in a Personal Lines environment?
I doubt it. The label of Commercial in reference to the arbitration rules has nothing to do with the insurance distinction between Commercial and Personal Lines.
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  #266  
Old 05-18-2018, 04:52 PM
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Vorian Atreides Vorian Atreides is offline
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Like tometom, I wasn't addressing prag's post. However, even with "precise definitions" of terms in the contract, Doctrine of Reasonable Expectation is going to be applied . . . what did the customer expect is being covered by the policy.
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  #267  
Old 07-12-2018, 04:30 PM
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https://www.lemonade.com/blog/lemonade-giveback-2018/

This post makes no sense on so many levels. I think they ran a 120% loss ratio or so and they give back 1.6 points of "profit" because one charity had one good year?

Shouldn't the giveback work that

A)Company had good loss ratio
B)Did charity have good loss ratio
C)Has charity had 5 years of good loss ratio.

Will be interesting how long this goes on, e.g. how long their re-insurers continue to bail them out.


I loved this post too btw- everything going great, except one minor problem- The Loss Ratio!
https://www.lemonade.com/blog/lemona...arency-review/
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  #268  
Old 07-12-2018, 05:16 PM
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I loved this post too btw- everything going great, except one minor problem- The Loss Ratio!
https://www.lemonade.com/blog/lemona...arency-review/
Turns out it's easy to grow your book of business when you are charging far less than market rates, who would have thought?
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  #269  
Old 07-12-2018, 05:20 PM
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They seem to be following the Tesla model of losing shareholder money.
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  #270  
Old 07-12-2018, 05:22 PM
tommie frazier tommie frazier is offline
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Quote:
Originally Posted by NAMAK View Post
https://www.lemonade.com/blog/lemonade-giveback-2018/

This post makes no sense on so many levels. I think they ran a 120% loss ratio or so and they give back 1.6 points of "profit" because one charity had one good year?

Shouldn't the giveback work that

A)Company had good loss ratio
B)Did charity have good loss ratio
C)Has charity had 5 years of good loss ratio.

Will be interesting how long this goes on, e.g. how long their re-insurers continue to bail them out.


I loved this post too btw- everything going great, except one minor problem- The Loss Ratio!
https://www.lemonade.com/blog/lemona...arency-review/
my belief is that they need the positive impact on marketing that giving to charity routinely can provide. if they take a year off and it is noted, that aspect of the program seems harder to sell.
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