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We have been advised to post an explanation of misinformation about our company that has been circulating.
Nations Hazard Insurance is a member of a Lloyds group of companies that is empowered to write E & O, GL and Legal Defense insurance to the Home Inspection Industry.
We offer "standard" policies that are payable by the month or annually. We also offer a policy entitled "Pay-as-you-go", which allows single inspections to be covered by faxing in Per-Inspection certificates. It is a very good policy for the new or part-time inspectors who are growing their company.
A situation in the State of Washington has caused us some turmoil. The member insurance company that was registered to write in Washington decided that the state was too much trouble. Unfortunately, the information was slow in reaching us. We wrote two(2) policies in the state and because of the requirement of all inspectors to file with Washington's Pesticide Management Division, the producer was flagged as non-compliant. We tried to correct the situation at the time, but a zealous investigator blew the problem out of proportion. The bottom line is that we have a hearing in Illinois (Our home state) on September 10th to explain the circumstances and hopefully resolve the problem. I will post follow-up information as we receive it.
I hope this posting explains our situation.

Michael

I have seen several discussions in various forums on the topic of your company Nations Hazard, and I for one have yet to read anything good about it. I have visited your home page on many occasions and have found a stunning lack of information about, your company, its products, its underwriters, and its state licenses.
I have just looked at my own states list of approved/licensed insurance companies and do not find Nations Hazard listed.

http://www.state.ma.us/doi/Companies/LicensedOrApprovedCompanies.xls

I am admittedly no expert on insurance law. But I would suggest to all members that before they buy any insurances be they E&O, life or vehicle, that they check with their states insurance regulatory body that their vendor is licensed by the state to write such policies.

Regards

Gerry

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A Lloyds Syndicate of Companies uses various Producer companies in different states to write the coverage through.
Massachusetts is written by Liberty Mutual Insurance Company #23043.
The producer may even change in the state depending on the one that wants to take on the risk.
These syndicate of companies in the insurance industry is commonplace but does cause confusion when the selling company is not the producer.
I hope that answers your concern.

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Dear Mr. Napadow:

According to my records, you were served with a Cease and Desist Order (C&D) by the State of Washington on 7/30/03, which ordered you to immediately cease all insurance transactions in the State of Washington.

You were also served with a similar C&D by the State of Illinois (Your home state) several days later. There are also several other states investigating your activities at this time.

There is in fact no such legal entity as the "Nation's Hazard Insurance Company", merely the "Nation's Hazard Insurance Agency", which is merely a vehicle for an insurance agent to have a place of business. (An office).

As of the last time I checked the files of the State of Illinois, you were not properly appointed by any admitted insurer in the country. You are definitely not licensed to transact the business of insurance in the State of Washington.

For information of those reading this, I am the "Zealous investigator" referred to in the above correspondence .

Sincerely,

Ted and Michael,

Would the both of you please explain what you said means to us.

Joe Myers

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Mr. Bader,
Your actions have definately caused us some problems; but I am assured by our legal representation that all allegations that you have made should be cleared up at the hearing in Springfield, Illinois on September 10th.
We have complied with the order from Washington and do not intend to write any further policies for the benefit of the home inspection industry in your state until the correct documentation is filed by the producer company.
I hope you will be attending the hearing, so you can view the documentation firsthand.

Ted,

It sures is looking like Michael is trying to resolve this issue. Are you sure you don't have a "hard on" for the guy?

With the response that was posted I would have to assume that his intentions were genuine as was his vehicle, National Hazards Insurance Agency.

Maybe you could fill us in on the details which leads you to believe his intentions or actions were in some way misleading, deceptive or dishonest.

Was this truly a clerical error or do you have evidence of wrong doing?

Joe Myers

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Regrettably, many inspectors have been persuaded by Nations Hazard Insurance to purchase E&O from them. These inspectors assume they have coverage, when it is likely they do not. If you are concerned you are one of these people, contact FREA at 800-882-4410 to discuss your options and obtain proper coverage. You can also visit www.frea.com for more information.

Allison,

Maybe you could explain this to me since Ted does not seem to be returning to explain it.

Joe Myers

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Joe, it seems funny to me that Micheal Napadow posted at 8:30AM, then at 10:01AM Ted Bader posted. What is a person from insurance legal affairs doing in our message board. Then the next post to said that you had no insurance and call frea for help.
It seems like pay as you go is hurting frea to me. It is a good plan and I stand my it.

Patsy Maietta
Founder of New York Nachi

Patsy,

At this point I am tending to view this as the bully on the block type bullsh**. I sure hope some of those against would come forward and explain this to everyone so we can verify that this insurance plan is indeed a good plan and our inspectors that use it are indeed insured!

I have heard lots of accusations and some mud slinging but NO FACTS regarding this companies ability to insure our inspectors.

It really would not be a bad idea to have Michael come defend these charges and I did write an email to him letting him know he should do just that.

Like the energizer bunny.........STILL WAITING!!!!!!!!!

Joe Myers

Michael Napadow:

Having ONLY the best interests of our membership at heart, I for one would love to see more pay-per-inspection E&O insurance like yours. I also believe my members would greatly benefit from more competition in the E&O insurance industry.

I am not qualified to be your Judge, Jury, and Executioner and I am not an insurance commissioner. NACHI has no mechanism to investigate insurance companies. However, I have removed reference to Nations Hazard from the main pages of this website. I made this decision personally, without prejudice, and took this action without any Committee assistance, namely because there is no Committee responsible for such a decision and the main pages of NACHI.org are ultimately within my scope of responsibility.

I wanted to explain why. Well first let me explain what did not influence this decision:

1. Mr. Ted Bader's claim that you were "served Cease and Desist Orders" from 2 states did not sway me. Receiving a Cease and Desist Order does not mean you were actually doing something wrong. Cease and Desist means "If you are doing this... stop."

2. Mr. Baders claim that there are "several other states investigating your activities at this time" did not sway me. This is the USA. An investigation is just that. An investigation means "we are doing our job by looking into it."

What did influence me was... well...Mr. Bader's zealousness. For a state official to take the time to register for NACHI's message board and post some red flags is admirable. I find most government employees to be paper stamping drones that could care less.

Anyway, his zealousness caused me to look deeper at the only thing we have to look at...your website. Gerry Beaumont is right. There is a stunning lack of information. This lack of information is probably no crime. However, it does contradict NACHI's belief that information is King. This is why we don't accept paid advertisement, we offer free link exchange with all, and host this free, open-to-all, un-moderated message board for you and Mr. Bader to post without fear of being deleted or edited.

This message board provides a forum for both you and Mr. Bader to keep us updated. We anxiously wait to hear about your September 10th hearing. We have a meeting in Mr. Bader's state of WA on September 13th. http://www.nachi.org/spokane.htm I will be happy to report any news either of you can provide me before then.

Nick Gromicko
Executive Director

PS Again, NACHI does not endorse or recommend any company, product, or service.

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The link to the NACHI site has been removed from our site.
Accused, tried and convicted in the court of rumor and vindictive competitor.

Hi to all

I whole heartedly agree with Joe F's post above, this fiasco reflects badly on all involved, and that includes this organization. I for one did not know until last night that Nations Hazard were using our organizations' logo and the words "Recommended By:" to promote their policies to home inspectors, which is why Mr Bader came to our site.
Let us not forget for a second that he is a law enforcement official, who's sole function is to protect the citizens of the State of Washington, if that smacks to anyone here of "big brother" get over it !!!

As to what nations Hazard is or isn't I have copied into this string a paragraph from an e-mail that I received today from Mr Bader:

Quote:

Nation's Hazard wasn't even licensed as an AGENCY until June, although that also does not entitle them to sell the product they are selling. What I find interesting is the reference to them advertising in MAY, before they had even applied for ANY form of license.

So lets get real here, the regulatory bodies in at least 2 states have issued C&D orders, they have NOT taken this action because some one miss filed something. I was given much more information verbally today about the background to this investigation, but I will not publish it, I leave that to Mr Bader as it is his tale to tell and his investigation. I will be asking him to provide more information as he is able to.

Lets not loose site of the fact that this company may be hurting our industry & our members

Joe F. as usual whatever help you need just ask.

Regards

Michael:

I have big ears. I find out that this SOLELY a FREA plot to hurt your company, thereby hurting inspectors by killing competition and pay-per-inspection insurance...I'll explode. I'll hire the camera crews myself. But in your own words you admit wrongdoing, don't you?

Anyway, when I'm wrong I eat s#!t. I originally put you on this website because I think your service is good for our members (that is the only criteria I use to base any decision at NACHI). Its no good to us if you can't sell it to us legally. Convince us. Deep down I hope you can succeed but you need to start throwing up the information. Read Joe Farsetta's post above.

Nick

I can't see Joe F. post. Where did it go?

Hi Larry it looks like Joe is giving it it's 5th edit, but it is funny how posts containing Nations Hazard information seems to keep disappearing the other place had an attack of it back in May

Gerry

Gerry,

Unfortunately, my post was mistakenly deleted by a dumba$$ move on my part when attempting to ediut and perform a relatively simple cut and paste.

For those of you who missed it, Gerry summed it up pretty well. No one at NACHI, (including Nick, Gerry, or I) were aware that Nations Hazard has "recommended by NACHI" on the splash page of their website. I'd like to know who authorized them to do so and why.

To the Nations Hazard fiasco, while FREAs timing may be a bit suspect, it doesn't dismiss the fact that many folks have been asking about the legitimacy of Nations Hazard for several MONTHS now. Little information is available about the firm, or its ability to launch or sustain such an effort. While the principles may indeed be good businessmen, I wonder what qualifies them to successfully operate an insurance company. The little I have been able to find is that the principles are involved in some other ventures, all totally unrelated to the insurance industry.

Remember, this is the type of stuff which can DESTROY an inspector and their family. For thos of you who stand by this company, let us know how soon you're switching E&O carriers. If you have the ba11s to do so, my hats off to you. If not, then why?

This is not bullying bullsh@t. These are legitimate questions.

To Mr. Napadow, why run away? NACHI is a member-driven organization. Convince our members you can legally insure us. No rhetoric. No veiled or cryptic comments. Let's start with your background and NAtions' support staff. Better yet, how long has Nations been in business, licensed in which states, for what (specifically), and license numbers.

Then we can progress to tho actually underwrites your policies (by State), the number of inspection claims you processed this past year, the percentage of claims settled versus defended, and the amounts settled as opposed to deductible limits. Who's actuarials do the the industry use?

Let's start here. And, who told you to post "recommended by NACHI"? Just curoius. To those who dont know it, NO ONE has the green light do authorize such a move without the okay of the Executive Director.

Finally, i believe this is the time for a policy shift. From now on, I believe that all chapter websites should be administered by Chris Morrell, and should conform to the NACHI master website. Sure, there can and should be a local flavor, but no endorsements, unauthorized links, etc. This way, there can be no misunderstandings. Let's get these chapters off on the right foot. No crap on their websites, and no crap on any website tied to NACHI.


Joe Farsetta
Chairperson, NACHI Ethics Committee
Chairperson, NACHI Steering Committee
Member, NACHI Education Committee
Member, NACHI SOP Committee
Nice (but sometimes pissed-off) Person