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Lloyd’s of Lawsuits
News Source: West Hawaii Today
HILO — The elderly couple, Philip and Lanell Haysmer, who lost their home in the Leilani Estates to the ongoing Kilauea eruption, are suing their insurer, Lloyd’s of London, for alleged bad faith. They filed their insurance claim on May 24, but after two months, they have yet to receive a decision or guidance, leaving them living in a friend’s garage and in urgent need of assistance.
The couple’s lawyer, Jeffrey Foster, stated that Lloyd’s, headquartered in the UK, does not have offices or claims adjusters in the state, making communication difficult. He alleges that Lloyd’s and its representatives have been unresponsive, failing to provide the assistance the Haysmers paid for through their policy, including aid for relocation expenses.
In contrast, their claim with auto insurer GEICO was processed and paid promptly. Foster stated that more lawsuits will be coming against Lloyd’s and hopes these lawsuits will lead to change in the Puna area.
The couple filed their claim with Aloha Insurance, which sold them the Lloyd’s policy. John Mullen & Co., assigned to be the claim’s adjuster, later informed them that the claim was being transferred to a second adjusting firm called Affirmative Risk Assessment in Arkansas.
Robert Joslin of Hawaii Public Adjusters, who assists homeowners with their claims, noted that many issues he sees are with Lloyd’s policies. He described instances of people not getting paid or only receiving partial payments, and missed deadlines for responding to claims.
The lawsuit, filed in Hilo Circuit Court, seeks payments under their insurance policy, attorney fees, and punitive damages, alleging breach of contract, breach of implied covenant of good faith and fair dealing, violation of state deceptive practices act, and civil conspiracy.
