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another black eye for the industry delivered squarely by a broker and big company cohorts. unfortunately the public doesn’t know the difference between agents and brokers and the whole industry takes a hit. you would think they would learn from spitzer.
Shows you how arrogant some insurance people in high places can be. They can’t learn from Spitzer because these actions were contemporaneous. Hopefully they and others similarly situated will learn a valuable lesson for future reference. One day the public is going to get tired of being screwed without so much as a kiss.
Haven’t we all been through this before?
What political office is Dann running for?
So… if Ohio has been investigating this for 3 years and New York just settled with these companies, I’m assuming these are all the same issues? So technically could every single state that these companies wrote business in bring suit and settle for multi-millions? Sounds obvious but I’m not sure if I’m missing something or if these companies could potentially be punished 50 times for the same infractions.
Rookie? If AIG, as a hypothetical example, steals from policy holders in all 50 states, are you saying that would only be one felony??
No – I don’t necessarily have an opinion on it either way. I know states mandate and not federal gov in these manners. All I’m saying is that these $MM per state settlements are going to end up to be a lot of money per company. Also, why wouldn’t every state sue every company then and just get $MM with somewhat ease? Spitzer has already uncovered the violations and these companies write nationwide…
What about Allstate, State Farm, Farmers, USAA, Safeco, TWIA (the Texas Windstorm Insurance Association), and others, RCV/ACV loss claim assessment market conduct?
They have been caught, red-handed, using false and illicit loss claim damage assessment methods, which affects loss value dollar amounts owed.
They have been caught using synthetic and misleading construction work protocols, and unreasonable business cost estimation schemes.
Illicitly higher profit margins can be proven to be based on sound underwriting methods, AND intentional loss claim underpayment schemes.
They have been caught trying to crush market competive reconstruction/restoration businesses by various unfair trade practice schemes, via their arm chair and field “adjusters”.
They cling to favorable judicial renderings as a blind for further anti-consumer, anti-agent, anti-broker, anti-adjuster, anti-contractor, anti-trust conduct.
They have greatly damaged the public confidence.
Why do they continue to do so?
They are afraid of honestly and responsibly facing themselves, and the human and financial damage they have willfully promoted in the name of money, power,…and “success”.
claimhawk@gmail.com
If I ran a large business, I’d have moved my brokerage 3 years ago when this story broke. This stuff definitely went on and Marsh simply served themselves. The insurers went along because they wanted the premium dollars. Brokers are supposed to act in their client’s interests, not their own.
Because of the actions of these so-called brokers and the companies involved, many small agencies are going to lose combined millions in contingencies. If you represent Travelers,The Hartford and Zurich, like we do, you are already feeling the hurt. Anyone thought of a class action suit for the harm they’ve done?
Joe: Please reconsider your class action notion. Class actions benefit only the lawyers who file and defend them. The members of the class walk away with ‘valuable coupons’ or chump change while the big bucks go to their lawyers. Better to pursue redress yourself individually.
Marc Dann and the Ohio Attorney General’s Office are not the only ones fighting for fair, honest representation from agents on behalf of Ohio residents. Independent agent Brian Roach has sued 9 insurance agents in and around Canton Ohio for attempted monopolization of the group health insurance brokerage markets in Stark and surrounding counties. Stark County Judge John G. Haas ruled June 1, 2007 that “it is clear that Roach(defendant) has alleged an antitrust injury” and that “Defendant(Roach) has sufficiently pled a claim for civil Conspiracy”. The case is ongoing alleging that 9 competing agents, in secret dealings with an insurance carrier, conspired to share and monopolize the group health plan markets in a 7 county area. The conspiracy included secret payments from the carrier and annual “retreats” where the co-conspirators collaborated and shared information that “have affected his(Roach) ability to compete in the group health care insurance market, proximately caused higher prices, lower quality services, and less choice for consumers.”
The agents being sued are: Leonard Insurance Services, Eastern Ohio Benefits(Sky Insurance), GDK and Company, DiStefano Insurance Services, Becker, McDowell Agency(Sky Insurance), Hanhart Agency, Hummel Insurance, Miller and Miller Insurance and Pipes Insurance Services.
For more information on this case, Brian Roach can be contacted at brianroach1@gmail.com or 330-936-2277. Attorney for Brian Roach, George Pilat of the Cleveland firm of McIntyre, Kahn and Kruse can be reached at 216-579-4114
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