posted on November 20, 2012 06:46:15 AM new
This morning is the first time I've gotten this notice.
I'm not from California nor am I shipping to California Why did I get the notice? Anyone else getting it?
ShipCover Insurance Surplus Lines Notice
1.THE INSURANCE POLICY THAT YOU HAVE PURCHASED IS BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED “NONADMITTED” OR “SURPLUS LINE” INSURERS.
2.THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.
3.THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.
4.THE INSURER SHOULD BE LICENSED EITHER AS A FOREIGN INSURER IN ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES (ALIEN) INSURER. YOU SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT, BROKER, OR “SURPLUS LINE” BROKER OR CONTACT THE CALIFORNIA DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREE TELEPHONE NUMBER: 1-800-927-4357. ASK WHETHER OR NOT THE INSURER IS LICENSED AS A FOREIGN OR NON-UNITED STATES (ALIEN) INSURER AND FOR ADDITIONAL INFORMATION ABOUT THE INSURER. YOU MAY ALSO CONTACT THE NAIC’S INTERNET WEB SITE AT WWW.NAIC.ORG.
5.FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED STATES AND YOU MAY CONTACT THAT STATE’S DEPARTMENT OF INSURANCE TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.
6.FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD BE ON THE NAIC’S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING OF APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR AGENT, BROKER, OR “SURPLUS LINE” BROKER TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.
7.CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS. ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: WWW.INSURANCE.CA.GOV.
8.IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER’S FEE CHARGED FOR THIS INSURANCE WILL BE RETURNED TO YOU.
posted on November 20, 2012 10:10:00 AM new
It pops up whenever you use Iship insurance while printing eBay labels.
They also break down the fees for the isurance to include an extra few cents on each purchase.
Started seeing it about a month ago.
It has to do with them being based in California, not the shipping destination.
[ edited by wgonzales on Nov 20, 2012 10:11 AM ]
posted on November 20, 2012 11:48:09 AM new
I used Shipinsurance last year,around Xmas and I filed a claim for a piece of broken porcelain figurine and they paid.
Then I use them to insure a shipment to UK and the buyer said she did not receive her item,so I filed claim with Ship Insurance.
They get upset,it turns out that they are not really the insurer,they are just agent for an insurance company and the president of Ship Insurance is a young man and he cancelled my policy.
The broken porcelain is only 65 dollars but the UK shipment is $1K.
Ship Insurance said it will honor my UK claim although they have banned me from doing business with them in the future.
Then I have problem submitting my claim as they have moved and it is not that easy to find out where they move to and they seem to delight in the fact my mail was returned and they have stalled me from filing claim.
They finally approved the claim and pay me for the loss,I would not be surprised since they advertise on Ebay,and is embedded in the page where you pay and print the labels,they do mucho business with Ebay sellers.
Ship Insurance office is in California,I will try to find the name of the insurance company they represent,they have a website ,so may be they are not based in California and coud have run into some financial trouble?
posted on November 20, 2012 11:59:03 AM new
here is something I found online-
eBay’s ‘ShipCover’ insurance worthless, class action saysOnline auctioneer eBay allows sellers and buyers to insure against any losses and damages that occur during shipment even when the company knows this so-called “ShipCover” policy specifically excludes the merchandise from coverage, a federal court lawsuit says.
26 Oct 2012
Melissa Sachs Luke Knowles, an Iowa resident, filed his complaint in the U.S. District Court for the Northern District of California against the San Jose, Calif., company and its wholly owned subsidiary eBay Insurance Services Inc., a registered property and casualty broker-agent.
(Story from Westlaw Journal Insurance Coverage)
According to the suit, eBay allows site users to insure purchased merchandise during shipment for up to $1,000 per package. The company has offered this ShipCover insurance exclusively through its website since 2010, the complaint says.
(Click here to read the complaint on Westlaw.)
Although eBay owns the intellectual property rights to ShipCover and its logo, co-defendant Fireman’s Fund Insurance Co. underwrites the policies, the suit says.
At checkout, eBay presents the insurance as a default option, the complaint says, and the item’s final sale price determines the premium.
Knowles has purchased ShipCover insurance numerous times in 2011, the suit says, including when he sold a Lowes gift card, a 1926-D silver dollar, an 1893-O Morgan silver dollar and an 1866 shield nickel.
After one buyer received an empty package, Knowles refunded the buyer and submitted a claim under the insurance policy.
The defendants denied the claim, saying the policy did not cover certain items sold on eBay including coins, gift certificates, stocks, bonds or other negotiable documents, according to the suit.
“These exclusions are not evident on the checkout page, even though that page offers the insurance, sets the insured value and … determines the price of insurance,” the complaint says.
Additionally, the defendants knew the offered insurance would be worthless because the items Knowles sold were specifically listed under the website’s “Coins & Paper Money” category, the suit says.
Through its technology eBay can prohibit certain buyers or sellers from adding the insurance if the buyer or seller has made past claims, Knowles says.
The defendants could also prevent buyers or sellers from selecting the insurance at checkout if the purchased merchandise is listed under a category specifically excluded from coverage, the complaint says.
Instead, the defendants offer illusory ShipCover insurance, the suit says.
This deceptive and misleading advertising violates the state’s unfair-competition law, Cal. Bus. & Prof. Code § 17200, the complaint says.
The suit also includes counts for negligence, rescission, unilateral mistake and unjust enrichment. Additionally, it says the contracts are void as unconscionable and illusory.
Knowles seeks to sue on behalf of all sellers and buyers who purchased ShipCover insurance for the excluded negotiable document items and those who also submitted claims under the policies for these types of items.
The complaint seeks class certification, damages, restitution, injunctive relief, an order for defendants to create a corrective advertising campaign, fees, costs and interest.
Knowles v. eBay Inc. et al., No. C 12 5211, complaint filed (N.D. Cal., San Jose Div. Oct. 9, 2012).
posted on November 21, 2012 01:23:44 AM new
This is the 1st time I've seen this notice. Of course I often ship UPS so I guess I wouldn't.
This item is no big deal but I have a $220 claim I'm getting ready to file with them for a lost package - so I'm a little leary to say the least.
