Posted On: February 10, 2006, 8:32 am CST

Posted By: E

Acknowledge, yes it appears they did - unlike the other carriers who paid fines for the same type of instances. CA DOI runs these types of inquiries yearly on ALL carries, it is a way to increase there budget. This is nothing new to the Mercury, progressive, Safeco, etc....

They acknowledged the bad treatment of their employees? Are you aware of what the case entailed? If not, let me help you out a minute. The case was over changing claims adjusters (ALL CLAIMS ADJUSTERS IN THE STATE) from salaried to hourly employees, the same as lets say a mill worker. This means they now have to work on time cards, which if you ever had to do this sucks. Those few employees caused an entire state to degrade the status of a profession. I would much rather work on a salary, pick my hours - have the ability to help customers when I wanted, and not be a on a time clock.

I guess now would be a good time to share information about myself. I am an independent adjuster who was worked with every major insurance company in this country. I hold licenses in every state and have seen how every insurance company operates in every part of the country. I would say, with the utmost certainty that Farmers is one of the better companies to have a claim with. If you would like justification read up on the recent tragedy on the Gulf Coast (I know because I was there for 120 days working for a different carrier that was providing lack luster service). Is Farmers disputing flood damage vs. wind damage like the other major carriers, NO. Were they the first in the area, YES. Did there adjusters weather the storm so they could deploy immediately, yes! Did the other carriers no, they arrived several days later. I am sure some on hear will say or think "He is a corporate mouth piece for the insurance industry" "He has been brain washed to screw the people." No I wold beg to differ, I go out of my way to ensure people understand there coverage, policy, and settlement. Why because I care and truly want to see people get what they are entitled too. However, I do not like to see people complain because they were not put in a better situation then they were prior to the loss. You have coverage to place you back to your current status, not elevate you. Hell, as an IA I would benefit my giving you more money as I am paid on the amount of claims I settle (i.e., the bigger the check that I write the bigger the pay check I receive).

Finally, I will address the issue with TX Mold. Farmers did what the other carriers were about to do, pull out if the circumstances did not change. Prior to the new legislation insurance carriers were spending 20-50 cents more on every dollar in premium than they were collecting on Homeowners claims because of MOLD. If you have ever been to TX you know it is humid and everything will mold with time without proper care. How can ANY company stay in business when you spend that much more money than you take in? You cannot, it is impossible. The TX DOI realized they could not fund the state insurance with the current policy because they knew it was a loser. They, along with other insurance carriers, drafted a policy that would provide adequate coverage and in most cases reduced customers premium. The entire state of TX was being penalized by MOLD claims in there pocket books. Insuring for Mold in TX was like insuring against termites, if you do not do something to prevent it (humidifier) it would destroy home/property.

Thank you for your time and have a good day