Except everyone else did. So to be clear, State Farm likes bad business moves. How much damage did they do to their business and brand image from the 100 articles, including a press conference, TV reports and few national newspapers to save themselves $200k?
Short sighted. As an agent with 25 years in the business all I can say is I have been getting alot of questions coming into my office about State Farm from this and it’s resoundingly negative.
How can an insurance agent be in favor of a carrier violating the terms of the policy?? If State Farm had determined that the hurricane deductible did not apply, would you encourange customers to pay the hurricane deductible because they would generate goodwill with carriers? Insurance policies are contracts between TWO parties.
I certainly hope that you’re not telling the customers who are calling that you can guarantee your carriers would waive the hurricane deductible.
IF SF reduces the deductible on these policies then why not reduce it in other circumstances (insured is unemployed, disabled, etc). Any arbitrary change in the contract may subject them to discrimination suits in the future when they don’t change it for others.
Goodness! Let’s not forget that we’re talking about insurance contracts that the consumer and the carrier entered into in good faith. There are legal ramifications to waiving contract language just to be popular-or whatever reason. I think State Farm is making good business judgments.
I’ll go to bat for the customer every time, if it’s warranted in any way. But these customers, who have chosen to live in a hurricane ‘zone’ and know the risks involved, bought a policy with a specific deductible in the unfortunate event their number came up. Well it did. It is what it is. Take responsibility for the decision made when the policy was taken out.
If people are going to continue living there and taking risk of getting slammed by another hurricane -get a different policy. Pay more for a lower deductible! And stop whining.
Except there was no hurricane. So you are supporting billing for something that didn’t happen? I’d be pleased to bill your credit card for my client’s absurd deductible that the rest of the industry waived because it was bad policy. I am sure you realize that when you signed your credit card agreement you read the fine print that any charges presented you must pay. Good luck!
If that is the case, maybe for future hurricanes that hit the State of Florida, all insurance companies could waive those deductibles too! How great would that be?? Good for State Farm for standing up to “politics”!
Good for State Farm! Boy would the consumers in the State of Florida just love that! Connecticut gets insurance companies to waive hurricane deductibles while the State of Florida still has to abide by the “insurance contract” they bought. Welcome to the world of hurricanes! Politicians will do anything for next years vote.
A contract is a contract!
Another example of how ignorant politicians are of business and how to run one. He has one goal: re-election at anyone’s expense. Politicians need to understand that taxpayers are fed up with their thinking there is an endless money stream to pay for whatever whim they dream up.
I agree with State Farm on this one. This was filed and approved by the state DOI. Just because no one expected a hurricane/tropical storm to hit CT, the deductible structure was approved resulting in lowered premiums. What would the premium for each of these policies be without the deductible? Is the insured prepared to pay the difference? If not then why? Why should S F pay the difference. Shame on Blumie for asking – typical politician.
According the NHC there was a hurricane. THERE WAS A HURRICANE.
Although, I’d agree with you that there were no hurricane strength winds reported on the ground so it probably wasn’t a hurricane. But that is an NHC issue not a State Farm issue.
Ha Hillsborough I like your style. But BSP is correct. The NHC (NWS) facts are it was downgraded well in advance of hitting Connecticut. There was no hurricane. As it relates to CT.
But it was downgraded less than 24 hours prior to hitting the state. SF policy extends the hurricane deductible to 24 hours after a storm has been downgraded. Many carriers in Florida remove the hurricane deductible 72 hours after watches and warnings have been discontinued. So SF’s policy doesn’t seem unfair.
October 17, 2011 at 3:55 pm
BSP says:
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You are insurance agents and you what, failed reading in school? It does not make me feel good to know that there are so many ignorant agents in our industry. This article states clearly there was no hurricane. Florida HAD a hurricane. The point Blumenthal makes is valid. This was bad policy to begin with. You can’t bill for something that didn’t happen. You wouldn’t fight it if it happened to you on your credit card? hmm?
It’s a shame that our industry has developed such a distrustful image and most of the posters on this string do nothing to enhance it.
Read the facts. No hurricane. The demand to waive the deductible was because there was no hurricane. And that is why bad policy is being rewritten. Sorry to the victims of this mess. The insured. My customers- who, by the way, have been calling me as well. And I am steering them clear of State Farm. I care about my customers. Which is more than you do, I can see.
I have been receiving calls about this in my office for the past 3 weeks. I stand behind this decision by Blumenthal. He’s right. The policy is narrow and bad. I am glad that 64 others waived it. WHY? Why am I an agent in this industry and glad they waived it?
1. there was NO HURRICANE. My customers have been slammed by a deductible for an event that didn’t occur.
2. The policy was bad. I support my customers. Obviously so many on this string don’t. And that is shameful. And unfortunately, it’s attitudes like yours which support the public opinion that our industry is slimy. I am not, but I see many of you are.
Good for Blumenthal. He’s doing the right thing. I support you Blumey.
3 weeks of calls on this issue. I have been in this business for 15 years and have always prided myself on doing the right thing by my customers. This is bad policy.
I have had to deal with crying and angry customers. What do I say- yes it’s right. Yes our industry has passed a ruling that says it’s ok to charge you 10k for a hurricane that hit florida and NC but not you. And yes, there was no hurricane so I am going to make sure you pay as if there was. Because our bad policy makers screwed you and please, here’s your renewal.
I like to put food on my family’s table. My wife and I sleep well at night because we are taking care of our customers.
Blumenthal is spot on. I support you. When bad guidelines are passed, we all suffer.
Way to go State Farm. Happy to see they stood their ground. When I first heard about this my opinion was this could open up a Pandora’s box. Let’s set a precedence of waiving deductibles no matter what the contract states. As for bad publicity, I doubt State Farm will suffer substantially for doing the right thing. If the politicians keep it up they could very well find themselves with no market for their voting population to purchase reasonable insurance, then how will they propose to fix that issue? Free ice cream for everybody!
How could you support State Farm’s decision as a business owner? I have been fielding calls as well, ever since the tropical storm hit Connecticut. While my client base is further North, I was upset to see that my daughter in law had StateFarm. 30 years of owning my own agency and aside from the mess with Katrina, I’ve never been more ashamed of the reaction in my own colleagues. The storm was a tropical storm. North Carolina, Florida, et all, they face hurricanes every year. They know the risk. CT faces a hurricane every 20 years. And this was not a hurricane. This guideline was wrong. I stand my my clients and I never like to see them screwed because it hurts my bottom line.
AND YES. I am telling my client base about it when they ask. I have a printout of the 64 insurers who waived this unnessesary deductible and they should be rewarded by increased business. That’s why I have less than 1% attrition. I have a lifetime relationship with my customers. Because I am honest and do the right thing.
If my business is any indicator, State Farm is indeed suffering as a result of this bad business decision.
Hillsborough Agent: The National Weather Service facts are that Irene was DOWNGRADED to a tropical storm before it hit the northeast. It was not a hurricane when it hit the tri-state area.
Um. Really? You sell insurance? All storms that have wind are hurricanes? You are much smarter than the National Weather Service. The NWS has nothing on your smarts. That is frightening.
You should read the article. State Farm is applying the hurricane deductible because their policy extends the timeframe for applying that deductible to 24 hours AFTER a storm has been downgraded from hurricane to tropical storm.
Your debating an issue that isn’t in dispute. State Farm is not saying it was a hurricane when it hit CT. It is saying that the hurricane deductible window had not closed.
In the interest of fairness, the National Weather Service declared this to be a tropical storm. There was no hurricane when it hit the northeast. That’s CT. It was downgraded before it even hit New Jersey.
Moderator, print the comments that are coming from my office. It’s disturbing to see that they aren;t posting. Showing bias is no good for anyone in journalism.
I find it interesting that many of you are commenting that Irene was no longer classified as a hurricane when it hit CT. While this may be true, the DOI guidelines state that a HD still takes affect for 24 hours following the downgrade of a hurricane. A lot of you are quick to blame the insurance company when it was the state government who agreed to these terms.
While there are some slimy insurance carriers out there, I don’t think that State Farm is one of them. In fact State Farm and others are pumping billions of dollars into the economy when it is most needed.
In addition, many of these people are able to apply for government assistance when they are unable to get coverage from their insurance. Our government seems to be pretty good at handing out money (1/6 of the population on food stamps) and, assuming the majority of these people are working taxpayers, I think this is a situation where it is warrented.
Except everyone else did. So to be clear, State Farm likes bad business moves. How much damage did they do to their business and brand image from the 100 articles, including a press conference, TV reports and few national newspapers to save themselves $200k?
Short sighted. As an agent with 25 years in the business all I can say is I have been getting alot of questions coming into my office about State Farm from this and it’s resoundingly negative.
How can an insurance agent be in favor of a carrier violating the terms of the policy?? If State Farm had determined that the hurricane deductible did not apply, would you encourange customers to pay the hurricane deductible because they would generate goodwill with carriers? Insurance policies are contracts between TWO parties.
I certainly hope that you’re not telling the customers who are calling that you can guarantee your carriers would waive the hurricane deductible.
Bad business move. What did they save by doing this? Savings to SF a drop in the bucket, damage to their reputation, uncountable.
IF SF reduces the deductible on these policies then why not reduce it in other circumstances (insured is unemployed, disabled, etc). Any arbitrary change in the contract may subject them to discrimination suits in the future when they don’t change it for others.
Goodness! Let’s not forget that we’re talking about insurance contracts that the consumer and the carrier entered into in good faith. There are legal ramifications to waiving contract language just to be popular-or whatever reason. I think State Farm is making good business judgments.
I’ll go to bat for the customer every time, if it’s warranted in any way. But these customers, who have chosen to live in a hurricane ‘zone’ and know the risks involved, bought a policy with a specific deductible in the unfortunate event their number came up. Well it did. It is what it is. Take responsibility for the decision made when the policy was taken out.
If people are going to continue living there and taking risk of getting slammed by another hurricane -get a different policy. Pay more for a lower deductible! And stop whining.
Except there was no hurricane. So you are supporting billing for something that didn’t happen? I’d be pleased to bill your credit card for my client’s absurd deductible that the rest of the industry waived because it was bad policy. I am sure you realize that when you signed your credit card agreement you read the fine print that any charges presented you must pay. Good luck!
I happen to agree with SF on this.
Why?
If that is the case, maybe for future hurricanes that hit the State of Florida, all insurance companies could waive those deductibles too! How great would that be?? Good for State Farm for standing up to “politics”!
Good for State Farm! Boy would the consumers in the State of Florida just love that! Connecticut gets insurance companies to waive hurricane deductibles while the State of Florida still has to abide by the “insurance contract” they bought. Welcome to the world of hurricanes! Politicians will do anything for next years vote.
A contract is a contract!
Another example of how ignorant politicians are of business and how to run one. He has one goal: re-election at anyone’s expense. Politicians need to understand that taxpayers are fed up with their thinking there is an endless money stream to pay for whatever whim they dream up.
I agree with State Farm on this one. This was filed and approved by the state DOI. Just because no one expected a hurricane/tropical storm to hit CT, the deductible structure was approved resulting in lowered premiums. What would the premium for each of these policies be without the deductible? Is the insured prepared to pay the difference? If not then why? Why should S F pay the difference. Shame on Blumie for asking – typical politician.
There was no hurricane. THERE WAS NO HURRICANE.
According the NHC there was a hurricane. THERE WAS A HURRICANE.
Although, I’d agree with you that there were no hurricane strength winds reported on the ground so it probably wasn’t a hurricane. But that is an NHC issue not a State Farm issue.
Ha Hillsborough I like your style. But BSP is correct. The NHC (NWS) facts are it was downgraded well in advance of hitting Connecticut. There was no hurricane. As it relates to CT.
But it was downgraded less than 24 hours prior to hitting the state. SF policy extends the hurricane deductible to 24 hours after a storm has been downgraded. Many carriers in Florida remove the hurricane deductible 72 hours after watches and warnings have been discontinued. So SF’s policy doesn’t seem unfair.
You are insurance agents and you what, failed reading in school? It does not make me feel good to know that there are so many ignorant agents in our industry. This article states clearly there was no hurricane. Florida HAD a hurricane. The point Blumenthal makes is valid. This was bad policy to begin with. You can’t bill for something that didn’t happen. You wouldn’t fight it if it happened to you on your credit card? hmm?
It’s a shame that our industry has developed such a distrustful image and most of the posters on this string do nothing to enhance it.
Read the facts. No hurricane. The demand to waive the deductible was because there was no hurricane. And that is why bad policy is being rewritten. Sorry to the victims of this mess. The insured. My customers- who, by the way, have been calling me as well. And I am steering them clear of State Farm. I care about my customers. Which is more than you do, I can see.
I have been receiving calls about this in my office for the past 3 weeks. I stand behind this decision by Blumenthal. He’s right. The policy is narrow and bad. I am glad that 64 others waived it. WHY? Why am I an agent in this industry and glad they waived it?
1. there was NO HURRICANE. My customers have been slammed by a deductible for an event that didn’t occur.
2. The policy was bad. I support my customers. Obviously so many on this string don’t. And that is shameful. And unfortunately, it’s attitudes like yours which support the public opinion that our industry is slimy. I am not, but I see many of you are.
Good for Blumenthal. He’s doing the right thing. I support you Blumey.
If a contract is a contract people, lawyers would have no jobs.
…what a wonderful world it would be…..
3 weeks of calls on this issue. I have been in this business for 15 years and have always prided myself on doing the right thing by my customers. This is bad policy.
I have had to deal with crying and angry customers. What do I say- yes it’s right. Yes our industry has passed a ruling that says it’s ok to charge you 10k for a hurricane that hit florida and NC but not you. And yes, there was no hurricane so I am going to make sure you pay as if there was. Because our bad policy makers screwed you and please, here’s your renewal.
I like to put food on my family’s table. My wife and I sleep well at night because we are taking care of our customers.
Blumenthal is spot on. I support you. When bad guidelines are passed, we all suffer.
Way to go State Farm. Happy to see they stood their ground. When I first heard about this my opinion was this could open up a Pandora’s box. Let’s set a precedence of waiving deductibles no matter what the contract states. As for bad publicity, I doubt State Farm will suffer substantially for doing the right thing. If the politicians keep it up they could very well find themselves with no market for their voting population to purchase reasonable insurance, then how will they propose to fix that issue? Free ice cream for everybody!
How could you support State Farm’s decision as a business owner? I have been fielding calls as well, ever since the tropical storm hit Connecticut. While my client base is further North, I was upset to see that my daughter in law had StateFarm. 30 years of owning my own agency and aside from the mess with Katrina, I’ve never been more ashamed of the reaction in my own colleagues. The storm was a tropical storm. North Carolina, Florida, et all, they face hurricanes every year. They know the risk. CT faces a hurricane every 20 years. And this was not a hurricane. This guideline was wrong. I stand my my clients and I never like to see them screwed because it hurts my bottom line.
AND YES. I am telling my client base about it when they ask. I have a printout of the 64 insurers who waived this unnessesary deductible and they should be rewarded by increased business. That’s why I have less than 1% attrition. I have a lifetime relationship with my customers. Because I am honest and do the right thing.
If my business is any indicator, State Farm is indeed suffering as a result of this bad business decision.
Hillsborough Agent: The National Weather Service facts are that Irene was DOWNGRADED to a tropical storm before it hit the northeast. It was not a hurricane when it hit the tri-state area.
Sorry folks but your facts are wrong.
A tropical storm is a wind storm Period. A hurricane is a wind storm Period.
Um. Really? You sell insurance? All storms that have wind are hurricanes? You are much smarter than the National Weather Service. The NWS has nothing on your smarts. That is frightening.
You should read the article. State Farm is applying the hurricane deductible because their policy extends the timeframe for applying that deductible to 24 hours AFTER a storm has been downgraded from hurricane to tropical storm.
Your debating an issue that isn’t in dispute. State Farm is not saying it was a hurricane when it hit CT. It is saying that the hurricane deductible window had not closed.
“You’re” not “Your”. Hate when I do that.
In the interest of fairness, the National Weather Service declared this to be a tropical storm. There was no hurricane when it hit the northeast. That’s CT. It was downgraded before it even hit New Jersey.
No hurricane hit CT. Check your facts people. Interesting case.
Moderator, print the comments that are coming from my office. It’s disturbing to see that they aren;t posting. Showing bias is no good for anyone in journalism.
I find it interesting that many of you are commenting that Irene was no longer classified as a hurricane when it hit CT. While this may be true, the DOI guidelines state that a HD still takes affect for 24 hours following the downgrade of a hurricane. A lot of you are quick to blame the insurance company when it was the state government who agreed to these terms.
While there are some slimy insurance carriers out there, I don’t think that State Farm is one of them. In fact State Farm and others are pumping billions of dollars into the economy when it is most needed.
In addition, many of these people are able to apply for government assistance when they are unable to get coverage from their insurance. Our government seems to be pretty good at handing out money (1/6 of the population on food stamps) and, assuming the majority of these people are working taxpayers, I think this is a situation where it is warrented.
Dang, I should have scrolled all the way to the bottom of the comments before responding to everyone. You are correct. Well said.