The Worst Insurance Companies in America Revealed!

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Let’s face it, Plaintiff’s attorney’s don’t much care for insurance companies. We fight with them all day, every day in order to try to get them to honor their responsibilities to our clients. The insurance companies fight us tooth and nail every step of the way by denying and delaying legitimate claims in the hope that we will accept less compensation than our clients are entitled to. When you deal with these tactics every day like we do, you grow so used to them that it almost seems normal. Every once in a while, though, new information comes to light that reminds us just how abusive and deceptive insurance companies really are.

A newly released report compiled after reviewing thousands of pages of documents, complaints, testimony and financial records of insurance companies from across the nation provided us with a refresher on just how bad insurance companies treat people. The abuses it reveals are enough to turn your stomach, and the common tactic of “delay, deny, defend” rings true to those of us battling in the trenches with these insurance giants every day. This is certainly not the first such report that identifies the tactics used by insurance companies to defraud their policy holders and lawful claimants. What is new, though, is that they name the 10 worst insurance companies in the country. While we have our own opinions formed over decades of dealing with insurance companies, it is nice to finally have some empirical evidence to rely on when we tell our friends, family and clients who the worst companies really are. Without further adieu, the worst insurance companies in America are:

1. Allstate Insurance Company. Is this really a surprise? The supposed good hands people have had the boxing gloves on for years, no matter what some actor who played a president on the show 24 may tell us.

2. UNUM Insurance. One of the largest disability insurance carriers, has been mistreating their insureds longer than anyone in this office can remember.

3. AIG. The largest insurance company in the world, AIG has been referred to as the new Enron because multi billion dollar corporate fraud.

4. State Farm. Another shocker here. The Company has gone to great lengths to avoid paying claims, including forging signatures on earthquake waivers after the deadly Northridge earthquakes, and altering engineering reports regarding damage after Hurricane Katrina.

5. Conseco. This company sells long term care policies, typically to the elderly. Unfortunately, Conseco uses the deteriorating health of its policyholders to its advantage because the company knows if it waits long enough to pay out claims, its customers will die.

6. Wellpoint. A health insurer, Wellpoint routinely cancels the policies of pregnant women and chronically ill patients.

7. Farmers Insurance Group. Consistently ranks at or near the bottom of homeowner satisfaction surveys. The company offers pizza parties to adjusters who meet low payment goals.

8. United Health. Physicians report that reimbursement rates are so low and payment is delayed so long that patient health is compromised. Money that should have been spent on medical treatment for policyholders has instead gone to the company’s former CEO, who faced criminal and civil charges for back dating stock options.

9. Torchmark. Founded by its own admission as little more than a scam, Torchmark has preyed on low-income Southerners for over 100 years. The company has come under fire for a variety of transgressions, including charging minority policyholders more than whites.

10. Liberty Mutual. Like Allstate and State Farm, Liberty Mutual has adopted “deny, delay and defend” tactics. The company has also gone one step further than simple claims-handling abuses by indulging in what regulators describe as systematic bid rigging.

You can read the full report here.

While these are the ten worst insurance companies nationwide, I could add a few companies to the list who operate in Elmira, the Southern Tier of New York, and the Northern Tier of Pennsylvania. The companies I am thinking of may be too small to make a national list, but any Twin Tier resident who has ever dealt with them could tell you a story or two. I won’t list them here, but if you ask me privately, I will be more than happy to give you my own top ten list of the worst insurance companies.

Thanks for reading,

_______________________________
Adam M. Gee, Esq.
New York and Pennsylvania Personal Injury and Malpractice Attorney
Ziff, Weiermiller, Hayden & Mustico, LLP
303 William Street
Elmira, NY 14901
Phone: (607)733-8866
Fax: (607)732-6062
Email: [email protected]
www.zifflaw.com

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5 thoughts on “The Worst Insurance Companies in America Revealed!

  1. Everyone knows how hard it is to go up against the insurance companies, but this is the first time I have had anyone list the worst of them. It was very enlightening for me and beneficial as well. I do have one of them for Medical through work but I can’t do anything about that. You have just written what I already thought. Thank you for the posts. I learn something new everytime you send one.

  2. Thanks so much for the kind words, Joan. We wanted to make this information available to people so they can make informed decisions about which insurance company they will do business with. Ordinary people still have power over big corporations through the power of the purse strings. If enough people choose to shop elsewhere, these companies will be forced to change their tactics.

  3. I too agree they dropped their promise a long time ago,seems like to me they haven’t lost their spot still #1 of {fraud}. UM/UIM; what happen when u become disable at 30yrs of age like myself. Allstate never admit. Cazares came forward & people should be very careful on who we trust w/ our life.

  4. If you really want to investigate and make public an insurance company that should be on your “worst” list, look at Frankenmuth Insurance and their subsidiaries Ansur America and Patriot. Frankenmuth has about 375,000 in direct written premium so this is not a little company. They operate in several states.
    Go to : http://www.michigan.gov/wca/0,.....2;,00.html which is the Workers’ Compensation Agency in Michigan – Look at the notice of dispute report for 2007 & 2008 – Frankenmuth disputes 99% of its WC claims. Compare that to all the other companies on the list. Then look at the pay lag reports – when and if FI pays a claim, its lag time is ridiculous. People are starving and this company is hiding behind a “dispute” on every claim.
    Their personal lines “customer satisfaction surveys” are purposely slanted. They only send them to homeowners whose claims have been paid without any areas of contention so that they can tell their agents that the rating of satisfaction is amazingly high. There is no validation or audit of this process to insure integrity to my knowledge.
    Also, every January, the Frankenmuth executive staff holds its annual board of directors meetings. The meeting typically takes 3-4 hours. Frankenmuth holds its meetings at places like the one and only Palmila resort in Cabo San Lucas or at the Winn (two years in a row) in Vegas. Not only does the company fund the board members trips, but they all bring spouses and stay for 5-7 days. Lavish entertainment, first class accommodations and meals are experienced by them all. It is amazing to have this type of ridiculous spending and then have the audacity to complain that they can’t charge their customers more money which they have done in a public letter to Michigan Insurance Commissioner Ken Ross in 2009 asking for continued use of Insurance Credit Scoring as a methodology in charging premiums.

    They lavish their agents with tickets in suites to MSU football and basketball however more often, its one agent and the CEO and all HIS family members. While most companies spend money on agency incentive trips, they don’t spend 5 million for one week as Frankenmuth did in its incentive trip to the Greek Islands in 2008. The prior CEO and his wife also insisted on taking all incentive trips in advance to see that everything would be satisfactory for the agents. They had a high price travel agent doing this for them so his travel was nothing more than guise to have extravagant vacations compliments of the policyholders.
    It is ludicrous for this company who was just a negative outlook by AM Best to whine about not having enough premium dollars when they spend it on themselves in such lavish ways.
    The attorney general has been asked to investigate the corporate malfeasance and conflicts of interest that occur at the very top level of this company.
    They’ve frozen employees wages; the pension plan was just frozen. Hiring is frozen yet they take their board of directors on weeklong exotic trips with spouses BEFORE the board meeting. This is clearly a conflict of interest meant to sway the board in to giving them whatever they want. They should be exposed to their policyholders and the public.

  5. Walter:

    While I personally don’t know anything about the Frankenmuth Insurance Co., I can tell you that I have seen enough insurance company shenanigans over the years that NOTHING that some insurance companies do could surprise me!!

    Thanks, Jim
    _________________________________________
    James B. Reed, Esq.
    Personal Injury & Malpractice Attorney
    Ziff Law Firm, LLP
    303 William St., Elmira, NY 14901
    Tel. (607) 733-8866 Fax. (607) 732-6062
    Toll Free 1-800-943-3529
    mailto:[email protected] http://www.zifflaw.com

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