Imagine if you were responsible for overseeing Florida’s insurance regulations and a subordinate came to you with a problem:
“Boss, we have so many complaints about insurance companies mistreating policyholders coming into the complaint telephone line that the entire staff only has time to take the calls and log the complaint. We do not have anybody left to follow up on the complaint. What do we do?”
The recently filed and quickly-to-be-heard proposed Florida insurance laws noted in yesterday’s post, Breaking News—Florida Senate Proposes New Insurance Legislation, finds Steve Badger in general agreement with this proposed unfair claims practice:
One great aspect of good conferences is the high quality of the audience. At yesterday’s First Party Claims Conference West, insurance claims expert Sandra Moriarity was in the audience. She commented that California law places insurance companies on the hook when they suggest or recommend contractors to do repair work.
Insurance companies often complain when policyholders sue the independent adjustment firm for causing delay and failure to act in good faith. In an interesting twist to this topic, AmGuard Insurance Company sued its own engineering firm that allegedly acted in bad faith.
What happened to fast and accurate property insurance claim handling? Most Floridians gave insurance companies a chance to do a great job. Many are very disappointed. The above photo depicting roof damage is just one example.
Continue Reading Why Are Hurricane Ian Claims Adjustments So Wrong, Low, and Slow?
Insurance company property claims manuals are often sanitized to prevent criticism. They contain general and often give vague instructions to claims adjusters. The actual instructions are often provided in verbal meetings with claims managers, which may have PowerPoint presentations, email claims bulletins, and other non-specific documents which are not placed in claims manuals. Why don’t market conduct examiners and departments of insurance investigators ask for these types of documents when investigating insurance company claims practices and conduct?
The answer to this post is very complex. But I want to publish one redacted example which shows how the claims management of independent adjusters seem more concerned about pleasing the insurance company bottom line rather than properly adjusting the claim as required by law:
I have been working on a number of active State Farm lawsuits involving its claims practices. My research came across a recently filed class action lawsuit in December alleging systemic racial discrimination in its claims processing.1 The press release to the lawsuit indicated the following:
Continue Reading State Farm Accused of Systemic Discrimination in Class Action Lawsuit
I thought about another title for this post: Florida’s Republican leaders heard firsthand how insurance companies are fraudulently underpaying claims and still sold out their constituents. Both titles are appropriate.
Continue Reading Whistleblowing Property Adjusters Confirm Fraudulent Property Insurer Practices
The property insurance claims industry is increasingly turning to independent adjusters rather than company adjusters. The number of independent adjusters calling, texting, and literally confessing to me about unethical conduct has exploded over the last few years. My thought is that insurance companies are hiring independent adjustment firms and then placing financial pressure on those entities to reduce claims severity. Insurers trying to make their financial claims goals will simply hire a competitor of the independent adjusting firm if those numbers are not met. Those independent adjustment companies, in turn, have their claims managers place more emphasis upon closing claims for less than what is owed—damn regulatory ethics requirements and good faith treatment.
Continue Reading Do Independent Property Claims Adjusters Need More Legal Protection From Unethical Managers