Farmers Insurance Cautions Vehicle Owners on Windshield Replacement Scams
National News • August 10, 2004
Driving with a cracked or broken windshield puts both drivers and their passengers at risk.
In fact, insurance companies in some states are required by law to waive the deductible for damaged or ...
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Subject: RE: Glass Replacement Fraud
Posted On: August 17, 2004, 9:36 pm CDT
Posted By: Mark
Comment:
Bill, I have read your post, and due to your words "If we see a glass bill that is out of line we will pay only the fair and reasonable rate for the area", I must assume you work for an insurer.
I therefore have a few questions:
1. If you only pay a 'fair and reasonable price' when you see a glass bill that is out of line, WHY does that cause insurance rates to rise, if you didn't actually PAY the higher bill???
2. If you see an insured being taken advantage of, and taken to small claims court for payment of a bill, do you have a duty to defend them under the policy, because you didn't fully pay the bill?
3. What measure of quality do you take into account when you determine your 'fair and reasonable' payment rates, such as quality of glass, quality of materials, quality of installers, and level of services being offered for the insurers definition of 'fair and reasonable'? If you are settling claims in public, for the public, with public market data or analysis, do you provide that formula to your insureds when you 'settle' their claim to your determination of 'fair and reasonable' rates?
4. If you as insurers know that these unscrupulous practices are going on by these glass companies, and, as you say, it is causing insurance rates to rise, why haven't you gone after them? As a consumer, I would love to see insurers prosecute those submitting inflated bills, waiving deductibles, offering kickbacks to agents, and more.
5. Is it possible you should be careful when accusing these shops that offer dinners, steaks, and other items, to see if it is indeed the glass shop paying for these items, rather than, as found in Denver, where it was the restaurant actually paying for the year's free meals in the hope of building thier clientel? How do you know the insurer is paying extra through the glass bill at all? Is it possible that glass installers do this to stop insurer steering?
6. Are you painting the glass industry with an incredibly broad brush, using accusations of fraud loosely? What did Farmers have to pay back to the policy holders in Texas recently for overcharging on homeowners premiums? And how much is Allstate going to pay back to Texas policyholders as of a couple of days ago...about $6 mil plus, wasn't it?
You see, that broad brush paints both sides of the fence.
Subject: RE: Glass Replacement Fraud
I therefore have a few questions:
1. If you only pay a 'fair and reasonable price' when you see a glass bill that is out of line, WHY does that cause insurance rates to rise, if you didn't actually PAY the higher bill???
2. If you see an insured being taken advantage of, and taken to small claims court for payment of a bill, do you have a duty to defend them under the policy, because you didn't fully pay the bill?
3. What measure of quality do you take into account when you determine your 'fair and reasonable' payment rates, such as quality of glass, quality of materials, quality of installers, and level of services being offered for the insurers definition of 'fair and reasonable'? If you are settling claims in public, for the public, with public market data or analysis, do you provide that formula to your insureds when you 'settle' their claim to your determination of 'fair and reasonable' rates?
4. If you as insurers know that these unscrupulous practices are going on by these glass companies, and, as you say, it is causing insurance rates to rise, why haven't you gone after them? As a consumer, I would love to see insurers prosecute those submitting inflated bills, waiving deductibles, offering kickbacks to agents, and more.
5. Is it possible you should be careful when accusing these shops that offer dinners, steaks, and other items, to see if it is indeed the glass shop paying for these items, rather than, as found in Denver, where it was the restaurant actually paying for the year's free meals in the hope of building thier clientel? How do you know the insurer is paying extra through the glass bill at all? Is it possible that glass installers do this to stop insurer steering?
6. Are you painting the glass industry with an incredibly broad brush, using accusations of fraud loosely? What did Farmers have to pay back to the policy holders in Texas recently for overcharging on homeowners premiums? And how much is Allstate going to pay back to Texas policyholders as of a couple of days ago...about $6 mil plus, wasn't it?
You see, that broad brush paints both sides of the fence.