Archives: Allstate

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David Berardinelli’s Fight Against Allstate’s Claims Culture

David Berardinelli made a presentation at NAPIA‘s Convention on Friday. His topic, “From ‘Good Hands’ to Boxing Gloves: How Allstate Changed Casualty Insurance in America,” was an excellent and updated version of a speech I have seen before. Many of his points are important to understanding why the claims culture has changed so much over … Continue Reading

Claims Magazine and the CPCU Designation are Worthy Educational Investments for Claims Professionals

Motivated claims adjusters need to study, improve, and be noticed for their skills and dedication. The May edition of Claims Magazine featured two stories I found interesting for different reasons. One article every adjuster should read is "Designation Envy-Why CPCU Should Matter to You." The other article, "Emerging Transformed-New Challenges Create Opportunities for Independents," should be … Continue Reading

Is Allstate Misleading the Public About the Need for Federal Regulation?

Recently, Allstate has accused other insurers of investing in credit default swaps. Does Allstate have knowledge of insurers engaging in this illegal activity? Or are these allegations a facade for the new federal oversight that would place Allstate under control of the federal government. My view on this topic is pointed: Allstate and other major … Continue Reading

The Proposed Federal Charter Legislation Should be Named: “The Anti-Consumer Insurance Act of 2009”

If you love dealing with your group health insurance bills and claims, you will be overjoyed with the new legislation proposed in Congress allowing property insurance companies to apply for a Federal Charter. This proposed legislation is the most unfair and anti-consumer federal legislation filed in recent years.… Continue Reading

State Farm’s, Allstate’s and Nationwide’s Concerted Agenda To Stop Competition And Insure Profits

Free enterprise is great until your competitors beat you. Dominant competitors may find it advantageous to combine interests to prevent new players from entering markets, destroying profit margins, and taking market share. It is amazing that there has not been more investigation and calls for transparency into the major personal lines insurance companies’ discussions and … Continue Reading

State Farm’s Power Play And Propaganda Ploy

State Farm is hard to figure out. They say one thing and often do another. When you finally get to the decision makers, there is usually some logic to why they do things despite disagreement from consumers or regulators. State Farm’s announcement that it was leaving the Florida property market really has me wondering–"what’s up?" From … Continue Reading

Property Insurers Financially Challenged In 2008

A financially strong and profitable insurance industry is in everyone’s best interest. When insurance is profitable, companies sell more of their products, usually at more affordable rates. Consumers and insurers win. A tongue in cheek example of this is found in my line of work. Our firm wants insurance companies to sell as much of their product … Continue Reading

Ed Liddy

National media articles have highlighted Ed Liddy’s appointment as the head of AIG during its unwinding.  His task is a large one.  A BestWeek article presents Liddy as a champion corporate strategist.  The article quoted one person as saying Liddy was extremely "ethical."  He may be, but my perception of Ed Liddy was shaped by his role … Continue Reading

A Fantastic Regulatory Settlement

Allstate Insurance Company fought the law in Florida — and the law won. After Allstate and its lawyers thumbed their noses at the Florida Office of Insurance Regulation’s requests for documents and information earlier this year, Florida insurance regulators prohibited Allstate from offering new policies in Florida.  For anybody who watched the proceedings or saw … Continue Reading

Allstate Worst Insurer In America

The American Association for Justice conducted a study and concluded that Allstate Insurance is the worst insurer in America. (Click here to see a complete copy of the study)  The report speaks for itself, but it truly details some outrageous behavior and a claims culture that clearly favors Allstate’s pocketbook over beneficiaries. … Continue Reading

Large Insurers Continue To Withdraw From The Risk Business

Best is reporting that State Farm continues to retreat from the insurance business in Mississippi.  The headline suggests that State Farm merely canceled policies, but the article reveals that State Farm canceled 900 policies, and changed the terms of 5,000 more customers by refusing to insure for wind peril. As I have explained, our largest … Continue Reading

New Insurance Companies Founded in Florida

 Capitalism and economic venture are alive and well in the Florida insurance market.  The Florida Underwriter reported this month that over 1.7 million policies have been written by new insurance companies since the 2004 hurricane season.  As Allstate, State Farm and Nationwide retreat from the Florida property insurance market, these new insurance companies are accepting … Continue Reading

Allstate Agents Victims?!!

Allstate Insurance Company has reportedly canceled or non-renewed more than 500,000 Florida property insurance policies over the last five years.  The decision to cut those policies was made by Allstate management.  Where were the insurance industry spin and propaganda people–often referred to as "spokespersons" of various insurance industry trade associations–to say that the victims of … Continue Reading

Federal Property Insurance

The article in today’s Tampa Tribune regarding a Federal Wind Insurance debate comes as no surprise.  Amazing how big Insurance is adopting Enterprise Risk Theory to further its interest.  Since large corporations in the insurance field are not so much interested in how they make money, just that they make as much as safely possible, … Continue Reading

Allstate Does the Right Thing

The Florida First District Court of Appeal upheld the Florida Office of Insurance Regulation’s suspension of Allstate writing any new policies in an opinion issued last Friday.  Allstate had refused or was slow producing documents to the Department as it investigated Allstate’s role in duping Florida legislators and regulators into passing legislation which should have … Continue Reading

Allstate Testifies Today

Allstate Insurance Companies are being called before the Florida Senate Select Committee to testify today and tomorrow regarding a number of issues, especially its rate filings.  I have publicy applauded this inquiry and those interested can read the Committee’s filings on the internet. The issues are a little broader than just rates.  The letter to Allstate … Continue Reading

Insurance Industry Claims And Rate Practices Come Under Public Scrutiny

 Tuesday was a rather interesting day.  Our firm helped win a $4.6 million dollar judgment for a panhandle Condominium Association last year. Citizens Property Insurance Corporation did not pay, as usual, but appealed.  I argued the case [Citizens Property Ins. Corp. vs. East Pass Towers II Condominium, No. 1D07-2727 (Fla. Dist. Ct. App. oral argument … Continue Reading

States Seek McKinsey Reports

 The Tampa Tribune reported Friday that the Florida Department of Insurance is seeking McKinsey & Company consulting reports which are allegedly tied to an Allstate plan to underpay claimants.  These documents are at the heart of contention in a Colorado case where Allstate is being fined for not providing them, and also in a Missouri Department of Insurance investigation where … Continue Reading

Department of Insurance Gets Nothing from Allstate

Allstate and other insurers are notorious for not complying with discovery seeking internal corporate documents which would expose corporate culture in bad faith cases. From the news yesterday and today, it appears the Florida Department of Financial Services has learned the same lesson most policyholder attorneys have known for quite some time.… Continue Reading

Insurers rate hike requests not surprising

Florida newspaper stories exposing the recent insurance rate hike requests should not come as a  surprise to anyone. This is just the latest example of why the public needs regulation of the insurance industry. It is a business built upon future promises that are routinely broken when the return performance is due. Why the Florida legislature seemed convinced that … Continue Reading