It’s imperative to know all the facts when making the important decision of choosing your insurance company. Ads flood our minds every day with the good aspects of certain insurance companies. However, a study conducted by researchers at the American Association for Justice (AAJ) has revealed cold, hard facts that expose the five worst insurance companies.
CEO Thomas Wilson clearly showed the greed of Allstate when he stated that, “our obligation is to earn a return for our shareholders.” This attitude began in the mid 1990’s, when McKinsey & Co., a company to advise and counsel businesses and institutions, suggested that Allstate reduces the amount they pay on claims and begin putting profit over policy-holders. They will either offer you a lowball settlement that will leave you with less money than needed to cover lost wages and medical bills, or aggressively fight and deny your claims at any cost. According to former Allstate adjusters, they were rewarded for keeping claims payments low, even if that meant deceiving their customers. It is also documented that they have a history of raising premiums and changing policies without informing policyholders.
2. Unum Provident
This company has a long history of denying and delaying claims. Employees of Unum also reported being told to refute claims in order to meet cost saving goals. In 2005, widespread fraud was found in the company because they violated state insurance regulations and falsely denied or low-balled claims using false medical reports, policy misrepresentations, and prejudiced investigations.
Just because they were the world’s largest insurer, doesn’t mean they’re doing it right. Their main focus is to take out more money in premiums than they pay out in claims.AIGuses the deny-delay-defend strategy in order to not pay out, but they also are known for taking advantage of their policy-holders hardship. They use tragedies such as Hurricane Andrew in 1992 and the September 11 terrorist attacks to raise prices of insurance dramatically.AIGis also guilty of corporate fraud and it is estimated that this fraud costs the average family $700 a year. They have even been described as “the new Enron.” Of course we know from recent history that their bad behavior has cost the U.S. tax payers billions of dollars.
4. State Farm
The character of State Farm was most apparent after Hurricane Katrina. If State Farm’s own engineers did not conclude the damages the way StateFarm wanted them to, they would hire a different engineer company that would conclude the damages to be of something that their policy did not cover. A CEO for an engineering firm that evaluated the damage of Katrina for State Farm, Bob Kochran, stated that he was asked to falsify reports that State Farm did not agree with. Certain engineers quickly began to question the ethics of the company that hired them.
Conseco targets the most vulnerable population with their policies. They sell long-term care policies to the elderly, but they use the age and declining health of their policy-holders to their advantage. By holding out on their pay out claims, many customers die before receiving what they deserve. Former agent Betty Hobel stated, “they made it so hard to make a claim that people either died or gave up.”
It is vital to know you and your family will be taken care of should disaster strike. Don’t fall prey to corrupt insurance companies.
Ray Hodge & Associates proudly represents victims and their families across the state of Kansas, including Wichita, Andover, Derby, Goddard, Haysville, Mulvane, Rose Hill, Newton, El Dorado and Hutchinson. Call today for a free consultation all over the state of Kansas. We have proudly served clients in Sedgwick, Butler, Sumner, Harvey, Kingman and Reno Counties.