I know you would probably find it hard to believe that an insurance company would provide less than factual information to claimants. But, today, the Georgia insurance commissioner issued a directive to insurance companies operating in the state - even threatening penalties for noncompliance - if they continued spreading the word, even implying, that the Georgia Insurance Commission has endorsed a particular formula or method to determine diminished value after an auto accident. It is simply not the case.
Since 2001, Georgia insurers have been required to consider diminished value in first and third party cases and pay appropriately when losses are proven. The method, however, was not set by the Mabry court as some insurers in Georgia and other states contend, in an effort to get consumers to accept less than they are owed on diminished value claims
Effective immediately, any insurer disseminating information and/or appraisals to their insureds shall cease using any language which implies the Department has endorsed a particular formula or method to determine diminution of value. Specifically, any insurer disseminating information and/or appraisals to their insureds shall cease using any language which implies that the Mabry decision or any other requirement of the Department supports the proposition that the diminished value result obtained by a carrier’s use of a particular formula or method constitutes the definitive determination of the carrier’s liability to its insured. Any insurer not complying with this Directive will be subject to appropriate disciplinary action.
Our thanks to the Ken Shigley, Shigley Law Firm, LLC., Atlanta, GA
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