maybe this will be the beginning of the end of rebating. some agents and wyo companies have been prostituting the business by offering rebates to insureds on flood policies in an attempt to write the other coverages.
Gee, government run flood insurance paying way too much and they want to run health care. I like that they used the work cooperative. When will we learn the government can not run anything efficiently.
seriously agentman? this is about how the private companies are scamming the government and stealing from taxpayers and you spin it into “it’s the governments fault?” brilliant.
OMG,
If the government was not so incompetent they would not be over paying. They don’t know what they are doing. Thats why the flood insurance program is bankrupt. Everyone is “scaming” the government including our elected leaders. Thats what I meant. Yeah it is the governments fault to allow this to happen. Nobody watching the store.
So the government is paying insurance carriers money so they can attach their name to flood insurance. The insurance carriers are not covering the risk – they just want to look like they are – why not keep it the way it was and save all that money. The bigger picture here is that insurance companies ( super powers) are in cahoots with the government – politics, power, money – they will all lead to the same place. As I have said in the past – let the consumer beware.
We conservatives think it is great when we can privatize and outsource–that’s why we most recently set up the Medicare drug program, guaranteeing huge profits and new customers for private insurers while deliberately withholding the use of our governmental purchasing leverage–no public option for us on Medicare drugs! Our pharma buddies got rich on that one and we’ve all been guaranteed viagra for life!
Now if we can just stall and delay in Congress a little while longer, we can force a no public option health insurance plan and help our rich buddies for a few years until inevitably things have to go to a single payer.
“And what is it you want Mr. Reagan?”
“I want to be an actor, a famous Hollywood actor…no I want to President, that’s right, President.
Walmart $4.00 prescriptions! Taget $3.00 prescriptions. Gee private sector competition works. Now if we could just get the government out of healthcare altogehter.
Doc,
The reason the Gov’t won’t get out of healthcare is the same reason they are in public office. You need two things one is votes the other is MULA!!$$$$$$$$$$$$$
You know that’s why they FED GOVT. won’t get out of healthcare. The Americans are too stupid to figure out they voted in a Socialist…..in the all the houses of D.C. White, Congress and Senate! What else would you expect from Publice Education, little Eiensteins’s. Sure!!
There’s a Sucka born every second someone once said. Oh and today we are going to talk about recycling toilet paper. One sq. for you and one sq for me.
Companies retain only 30%, not 30%-40%. From that, they pay the retail agent a commission from 15-20%.They pay state taxes of 3%. Then operating expenses of 5-7%. Companies are lucky to make 4 to 5 cents on the dollar. There is no investment income. It is not the windfall people think it is. Don’t believe evertyhing you read. The claims, where a % of the loss is paid for the adjustment, is an issue that should be looked into.
That’s it. It is a typical government program with an excessive number of staff, excessive number of rules, regulations and forms for a one peril insurance program. People are lucky to have private insurance companies involved.It does not make the money other prodcuts (risk bearing) do.
Just remember that prior to the 1983 WYO program started, the Federal Govt was failing and unable to run the Flood Program. For those of us old enough to remember, you were lucky if you could get someone who spoke English to answer the phone with Federal Flood. And you were nearly likely on eternal hold. The Fed govt was simply unable to handle total administration of the Flood Program.
Also remember that Jimmy Carter was President during this failure time prior to the WYO.
There’s something funny about trying to get Fed govt to take over Health Care Insurance when they abandonned managing Flood Insurance.
‘The federal government is overpaying private insurance companies that manage flood insurance policies by as much as 16.5 percent. To just six of the 87 participating carriers, the Federal Emergency Management Agency (FEMA) paid $327.1 million more than their actual expenses, according to a new government report.
The Government Accountability Office (GAO) report says that FEMA does not have the information it needs to determine whether its payments to Write Your Own (WYO) insurance carriers involved in the National Flood Insurance Program (NFIP) are reasonable.’
So Fema does not have the information to determine if overpayments have been made?
Then why the first line of the article?
If some idiots out there think agents make money on this program, as an agent I will tell them ‘get a clue’. It’s a money loser for this agent. I write those policies as a public service for those who need them. I would be happy to give it ALL back to the government.
As much as I’m enjoying the anti government screeds being exchanged, for all of you grousing about how the government shouldn’t be in the flood insurance business to start with, you should remember your history. The only reason why we have a flood insurance program at all is because the private insurance market refused to offer the coverage. There was no working market for flood insurance- the market failed to provide a viable solution. If the past year has taught us anything, it is sometimes markets fail.
My husband wanted a house on a tidal creek in Marin County, CA.
It is in a SFHA (Flood Zone) because in the 1950s the County of Marin, despite almost a century of SF Bay Tidal data, did not require the developer to fill the tidal marsh to a safe elevation.
Yes, in the 1960s the government created NFIP because the private insurance market, which is built on Profit could not find a viable way to provide insurance.
The private market was RIGHT. The Fed Government’s NFIP program allowed local governments to keep right on approving unsafe buildings.
People did NOT want the insurance, but the banks, like the insurance companies, knew building in these areas was not safe and so the the Government, in the 70’s required NFIP insurance on Federally backed loans.
Now all of us who were stupid enough to play by the government rules, pay our taxes, NFIP insurance and try to survive are being thrown under the truck because the federal government does not want to bail out the program it created.
The deficit created by the government program, climate change and rising sea levels due to human greed, is now being balanced on the backs of the people like us who were stupid enough to believe in our government.
It never would have happened in the government had not interfered in the private sector.
Idiots that rebuild their homes in flood zones fail. They Fail to get the idea that the property may re-flood. Geee if the market did not want to take the risk why should the tax payers? Like I said a SUCKA BORN EVERY MIN. UBU’s if you don’t know how business work here’s a scoop for your lead editorial, PROFITS ARE A GOOD THING! NOT LOSSES! OK, OK now I’m evil because I used the “P” WORD. I now read today we are going to dump my tax dollars into the POST OFFICE. Gee another gov’t program subsidised by my tax dollars how nice. Here’s the link for ya! http://www.politico.com/news/stories/0909/27513.html
Interesting that so many blame the government when private industry is the one overcharging and getting rich off the program. We blame government for not keeping private industry honest– but of course we don’t blame the private insurers themselves for their part in the scam and for ripping off the public.
Many are missing the point. The government has been paying regardless of it too much or too little. The government allows this to occur. The government does not know yet (despite payouts) if what paid is too much, too little, or just enought. The government (your tax dollars) is in control of the outflow of money.
There is no greed when willing hands are outstreched to a government that says “hereya go” to any willng recipient.
Many are missing the point. The government has been paying regardless of it too much or too little. The government allows this to occur. The government does not know yet (despite payouts) if what paid is too much, too little, or just enought. The government (your tax dollars) is in control of the outflow of money.
There is no greed when willing hands are outstreched to a government that says “hereya go” to any willng recipient.
Many are missing the point. The government has been paying regardless of it too much or too little. The government allows this to occur. The government does not know yet (despite payouts) if what paid is too much, too little, or just enought. The government (your tax dollars) is in control of the outflow of money.
There is no greed when willing hands are outstreched to a government that says “hereya go” to any willng recipient.
What many of you are missing is that FEMA sets the payments, not the insurance companies. It’s FEMA’s formula. Tell the truth if some one paid you $116 to do something you could do for $100 would YOU return the extra 16 or say that’s too much?
No Peanuts, your comments don’t make you racist.
They do however clearly define you as a Rebuplican who has been listening to too much Glen Beck & Rush Limbaugh.
Although the WYO program was started in 1983, the original set up for NFIP was in 1968.. that would be under President Nixon.
You remember him – did more to tarnish the office of The President of the US than any man before or after him? Took the country off of the gold standard? Republican?
Nah, you wouldn’t want to remember those things.
So, if the NFIP was failing it could be due to his signing a poor plan into law. Not necessarily President Carter’s fault.
Yes, if insurers were paid $116 for work that only cost them $100 to do, I would expect the insurers to speak up. What’s wrong with some honesty? It is after all taxpayers’ money. It is supposed to be a partnership to help people– not for the private sector to see what it can get away with and get rich at public expense. It is their government, too. Why not help the government do a better job rather than complaining about it all the time? You can bet if they were losing money they’d be screaming.
I don’t think there should be any flood insurance period. Because as we know, if you buy it or not, the government will pay in the end anyway, right New Orleans? So the people really getting scammed are the good guys that buy flood insurance, but then their neighbor who didn’t, gets there house fixed with tax dollars. Lets just call it all “A natural disaster” and leave it at that. Government will always screw you in the end!
Do you think it would be cheaper for the government to handle flood insurance. Let’s see, they would have to hire a contractor to underwrite, process, pay claims, etc. Now let’s remember it’s the government so my guess is they would pay at least two times what they are paying the Write Your Own Companies to do this.
by Richard M. Ebeling
Wednesday, 06 August 2008
With the government budgeted to spend nearly $3 trillion in its current 2008 fiscal year, it should not be surprising that special interest groups of all types flock to Washington, D.C., to lobby for pieces of the budget pie at taxpayers’ expense.
In 2007, over 15,600 registered lobbyists spent more than $2.8 billion to influence federal legislation and tax policy. During the last ten years the number of D.C. lobbyists has increased by one-third, while their spending has almost doubled.
Lobbyists span the political spectrum and represent virtually every sector of the economy and social group. Special interest groups lobby for offensive and defensive reasons. Some pressure groups aggressively lobby to acquire benefits, favors, and government handouts to the detriment of their competitors’ and the taxpayers. Others lobby reactively to prevent the implementation of government regulations and redistributions that might harm them.
But either way, billions are are being spent each year to persuade politicians to use their governmental power in one way or another that otherwise could have been spent more productively in private sector activities.
According to the Center for Responsive Politics, in 2007, organized labor spent over $44.3 million on lobbying members of Congress. Public sector unions shelled out almost $18.5 million last year to influence federal legislation; transportation unions spent nearly $10.6 million, industrial unions spent $6.1 million, and other unions spent in total another $6 million.
On the other hand, business associations of all types spent more than $87.2 million last year on lobbying activities (the U.S. Chamber of Commerce, alone, expended over $52.7 million of this total).
As can be seen in the Table A, below, by industry, pharmaceutical and health product companies spent the most on lobbying in 2007, almost $227 million , followed by insurance ($135.9 million), computers/internet ($110.7 million), electric utilities ($110.6 million), hospital/nursing homes ($91.5 million), and education ($88 million).
In Table B, below, the specific largest individual associations and companies are listed that expended the largest sums on hiring Washington lobbyists in 2007.
Freddie Mac spent $8.5 million and Fannie Mae $5.6 million “persuading” the congressmen who have now assured them a government-guaranteed bailout.
Finally, Table C, below, summarizes the leading policy issues in terms of the number of clients (businesses, unions, associations, non-profits) that hired lobbyists to influence federal legislation in their respective desired directions.
Not surprisingly, the general heading of federal budget and appropriation issues had the largest number of interested parties hiring lobbying firms. After all, this covers a huge number of policy areas for which government can expend monies, impose regulations, or distribute any number of other favors and privileges that can affect the economic well-being of virtually any citizen in the United States.
The specific spending areas that drew the biggest number of clients in 2007, outside of general budget and appropriation decisions, were, respectively, defense, health care issues, taxes, transportation, and energy.
Billions of dollars a year in lobbying activities will continue to be spent in Washington as long as the government has favors and privileges to bestow, and other people’s money to redistribute for the benefit of some at the general taxpayers’ and citizens’ expense
Do you think it would be cheaper for the government to handle flood insurance. lobbying in 2007, almost $227 million , followed by insurance ($135.9 million
As a 10 year veteran of the catastrophe adjusting business, I’ve worked
on numerous State Farm projects, as well as for many other companies.
All with varying degrees of profit potential. What you’re about to read
is worth your time … trust me. It may save you from making a big
mistake.
We’ve all heard the horror stories which have been circulating for years
now, about how bad State Farm often treats it’s independent adjusters,
as well as their policy holders. To date, however, I’ve been mostly
spared the bad trips many other adjusters have experienced. I’ve made
money working for State Farm in the past, but it’s getting more and more
difficult, especially on a large CAT.
Now I have my own nightmare to add to the stories you’ve heard. By the
way, it’s true … they do behave like Nazi’s toward independents on
most of their projects, and care about as little for the independent
adjuster, as they do for their policy holders. For those who have worked
for what’s come to be known as Hitler’s “SF,” you know what I’m talking
about. The latest term I’ve heard to describe them in south Mississippi
is, “The Great Satan.” This is how angry people have become here.
This year I was begged, I mean literally begged by a certain
independent, to come and help them out on their hurricane operation in south Mississippi, because the adjuster before me had
ditched the storm. Fool that I was, I went to try and help out, only to
get the worst screwing I’ve gotten in a very long time.
To begin with, at least a third of the flood files I was given, required
underwriting reformation before a scope could be agreed to, or any
advances issued. This process was taking up to 30 days when I left. Keep
in mind, in many cases these are people out of their homes without
additional living expenses. Many were so upset, that they were either in
tears when I arrived, or furious that they couldn’t get any advance
money. Add to this the problem of closing these files. You can’t close a
flood claim that is being corrected for underwriting errors. You can’t
bill it either. We couldn’t even close our no claims, until what has
come to be known as “The Reformation” is completed on the policy.
When I asked one of their wealthy agents, who’s home I just happened to
be handling for minor flood damage, what an elevated structure was, the
agent admitted to me that she had no clue. And that she had not even
been to a seminar or workshop on the subject, because they were
inconveniently held out of town. Far from being an isolated case, there
are hundreds, possibly thousands of State Farm policy holders all across
the southern Gulf Coast, who are getting screwed more than they usually
do by State Farm, all because the company failed to properly school
and(or) test their agents on how to accurately file the underwriting on
a dwelling flood policy.
But the nightmare doesn’t end there, the poor people in many cases will
owe money when the underwriting errors are corrected, because they were
being undercharged on their coverage, for in some cases YEARS! Try
handling a claim where, because of the hurricane, the policy holder owes
the insurance company money!!! It’s the most negligent situation I’ve
ever encountered since I started adjusting. It wouldn’t surprise me to
see a class action lawsuit against them for this, if their isn’t one
already.
And get this, the policy holders all say that after they purchased their
policies, someone came out and inspected their homes in order to verify
the application. Makes you wonder who’s watching the store here.
Amazing how these hypocritical bastards will nickel and dime the poor
people to death, meticulously handling their disaster claims to
undeniable lean accuracy. Only to handle the underwriting with such a
disregard for correctness, as to cause a second catastrophe in the poor
people’s lives.
It’s as if someone owned a grocery store, who didn’t care to manage the
receipts for his wholesale inventory, but managed to death, the check
out clerks, the bagboys, and the customers for shoplifting concerns.
Going so far as to do body cavity searches of everyone who dares leave
the store with any merchandise, even though the goods are already paid
for.
What’s worse, when I arrived at the CAT two weeks after the storm, no
one informed me how bad things were, because all they were looking for
at that point were warm bodies to help control the dam break of
underwriting errors. Many of the adjusters before me had already fled
the situation.
Little did I know that the underwriting problems had created an
apparently dire legal or political situation, whereby we were told that
the storm office had to be closed by Thanksgiving. This created an extra
element of stress during the operation, that became a nightmare for me
personally. I have a hard time dealing with people who are angry for
good reason. It’s hard to put a value on your labor under those kinds of
circumstances, because you have to spend so much of your time hand
holding. Work like this should be billed at time and expense, or a daily
rate, it’s that simple.
Rumor is that the Mississippi State insurance commissioner has caught
wind of the big mishap, and is coming down hard on State Farm, forcing
them to rush their claims to completion. Keep in mind that you will
probably not be paid for the time and effort you put into the files you
cannot close before they are reassigned. This is common practice with
State Farm, stealing labor, and don’t kid yourself, the adjusting firms
you are working for don’t give a damn about you or your money, because
they will get theirs, regardless.
When I received my files, many of the insured’s were complaining that we
were the third and fourth adjuster who had contacted them. This was only
two weeks into the storm! Why, because it’s getting hard to find good
adjuster’s willing to be a part of the “SF.” They simply don’t pay
enough for the garbage you have to put up with, and it creates
underlying resentment throughout the whole operation. They seem to take
pride in denying people all the they can, and that includes denying the
independent adjuster a fair return on their investment of time and
labor. I swear, working in one of their offices, is often like working
in a maximum security prison. You have no freedom to do anything, except
kiss the guards asses continually, while they strip you of every bit of
pride you ever had in your work. Their arrogance is unequaled in the
industry, and as I have said, I have worked for just about everybody at
one time or another.
My advice. Never ever work for a State Farm catastrophe operation,
unless it’s minor wind or hail, or you get lucky and are working in an
independent’s branch completely separated from their offices. Otherwise,
you will have to put up with 10 times more crap than working for anyone
else, and if you’re lucky, you’ll make even less money.
One of the reasons I’ve always liked adjusting property claims in a
disaster situation, was because I felt like I was helping people.
Working for State Farm, I rarely have that feeling. Instead, I have the
feeling that I’m screwing people, and it’s awful. You go home tired at
night, after spending all day on your inspections, and you think about
all the people you screwed that day, because by the time you get done
with withholding their roof tear-off, and their depreciation, and their
hurricane deductible, they are left with nothing, except a premium
notice that just keeps on coming, year after year. This business has
gone down hill precipitously since I got into it ten years ago, and I’m
seriously thinking of leaving the industry. I just don’t get that good
feeling I used to, especially working for the Great Satan.
Which brings to mind something that just bugs the crap out of me. One of
the worst things State Farm does, in my opinion, is consider partial
roof replacement a betterment. I wish someone would challenge this in
court, again and again if necessary, because if I was sitting on a jury,
I would throw Holy Water all over them on this issue. It’s insane to
call slope replacement a betterment, and we all know it. In the mind of
the average Joe it’s a repair, because in most people’s minds the word
“roof” is singular.
I have been told that there is a famed attorney who might be willing to
make our case, due to some common interest in another action he’s
undertaken, and which is currently pending against State Farm, by the
policy the holders in the state of Mississippi. Let’s face it, our
testimony could be devastating to State Farm, if we spoke on behalf of
the policy holders in any courtroom in the land. It could be the
greatest bombshell ever to hit the industry, and one well deserved.
The GAO studied and reported on six of the largest WYO carriers. During the three policy years beginning 2005 and ending 2007, FEMA paid these carriers $327.1 million more than their actual expenses. This translates to a 16.5 percent overpayment.
On june 2 2011 fema “redesigned” all of their floodplain maps. resulting in anyone living near a ditch being classified as flood zone A. They then notified all banks, that if they did not require flood insurance on these loans, they would be fined for each property.
Fema dictates who is in a flood zone. Fema dictates the rates. Fema sells flood insurance. Look up racketeering on wikipedia. Now, all you people who have had this money stolen from you go to your county assesors office, and ask to have your property tax reduced, because your property has been rendered unmarketable.
maybe this will be the beginning of the end of rebating. some agents and wyo companies have been prostituting the business by offering rebates to insureds on flood policies in an attempt to write the other coverages.
this practice never should have been permitted.
Gee, government run flood insurance paying way too much and they want to run health care. I like that they used the work cooperative. When will we learn the government can not run anything efficiently.
seriously agentman? this is about how the private companies are scamming the government and stealing from taxpayers and you spin it into “it’s the governments fault?” brilliant.
OMG,
If the government was not so incompetent they would not be over paying. They don’t know what they are doing. Thats why the flood insurance program is bankrupt. Everyone is “scaming” the government including our elected leaders. Thats what I meant. Yeah it is the governments fault to allow this to happen. Nobody watching the store.
So the government is paying insurance carriers money so they can attach their name to flood insurance. The insurance carriers are not covering the risk – they just want to look like they are – why not keep it the way it was and save all that money. The bigger picture here is that insurance companies ( super powers) are in cahoots with the government – politics, power, money – they will all lead to the same place. As I have said in the past – let the consumer beware.
Andrea Luoni
http://www.RateCraft.com
Well–there you all go again.
We conservatives think it is great when we can privatize and outsource–that’s why we most recently set up the Medicare drug program, guaranteeing huge profits and new customers for private insurers while deliberately withholding the use of our governmental purchasing leverage–no public option for us on Medicare drugs! Our pharma buddies got rich on that one and we’ve all been guaranteed viagra for life!
Now if we can just stall and delay in Congress a little while longer, we can force a no public option health insurance plan and help our rich buddies for a few years until inevitably things have to go to a single payer.
“And what is it you want Mr. Reagan?”
“I want to be an actor, a famous Hollywood actor…no I want to President, that’s right, President.
“Whatever you say, Mr. Reagan.”….
The Matrix was real.
Walmart $4.00 prescriptions! Taget $3.00 prescriptions. Gee private sector competition works. Now if we could just get the government out of healthcare altogehter.
Doc,
The reason the Gov’t won’t get out of healthcare is the same reason they are in public office. You need two things one is votes the other is MULA!!$$$$$$$$$$$$$
You know that’s why they FED GOVT. won’t get out of healthcare. The Americans are too stupid to figure out they voted in a Socialist…..in the all the houses of D.C. White, Congress and Senate! What else would you expect from Publice Education, little Eiensteins’s. Sure!!
There’s a Sucka born every second someone once said. Oh and today we are going to talk about recycling toilet paper. One sq. for you and one sq for me.
Companies retain only 30%, not 30%-40%. From that, they pay the retail agent a commission from 15-20%.They pay state taxes of 3%. Then operating expenses of 5-7%. Companies are lucky to make 4 to 5 cents on the dollar. There is no investment income. It is not the windfall people think it is. Don’t believe evertyhing you read. The claims, where a % of the loss is paid for the adjustment, is an issue that should be looked into.
That’s it. It is a typical government program with an excessive number of staff, excessive number of rules, regulations and forms for a one peril insurance program. People are lucky to have private insurance companies involved.It does not make the money other prodcuts (risk bearing) do.
Just remember that prior to the 1983 WYO program started, the Federal Govt was failing and unable to run the Flood Program. For those of us old enough to remember, you were lucky if you could get someone who spoke English to answer the phone with Federal Flood. And you were nearly likely on eternal hold. The Fed govt was simply unable to handle total administration of the Flood Program.
Also remember that Jimmy Carter was President during this failure time prior to the WYO.
There’s something funny about trying to get Fed govt to take over Health Care Insurance when they abandonned managing Flood Insurance.
Oh wait, does my comment now make me a “Racist”?
The first three lines of the article:
‘The federal government is overpaying private insurance companies that manage flood insurance policies by as much as 16.5 percent. To just six of the 87 participating carriers, the Federal Emergency Management Agency (FEMA) paid $327.1 million more than their actual expenses, according to a new government report.
The Government Accountability Office (GAO) report says that FEMA does not have the information it needs to determine whether its payments to Write Your Own (WYO) insurance carriers involved in the National Flood Insurance Program (NFIP) are reasonable.’
So Fema does not have the information to determine if overpayments have been made?
Then why the first line of the article?
If some idiots out there think agents make money on this program, as an agent I will tell them ‘get a clue’. It’s a money loser for this agent. I write those policies as a public service for those who need them. I would be happy to give it ALL back to the government.
As much as I’m enjoying the anti government screeds being exchanged, for all of you grousing about how the government shouldn’t be in the flood insurance business to start with, you should remember your history. The only reason why we have a flood insurance program at all is because the private insurance market refused to offer the coverage. There was no working market for flood insurance- the market failed to provide a viable solution. If the past year has taught us anything, it is sometimes markets fail.
My husband wanted a house on a tidal creek in Marin County, CA.
It is in a SFHA (Flood Zone) because in the 1950s the County of Marin, despite almost a century of SF Bay Tidal data, did not require the developer to fill the tidal marsh to a safe elevation.
Yes, in the 1960s the government created NFIP because the private insurance market, which is built on Profit could not find a viable way to provide insurance.
The private market was RIGHT. The Fed Government’s NFIP program allowed local governments to keep right on approving unsafe buildings.
People did NOT want the insurance, but the banks, like the insurance companies, knew building in these areas was not safe and so the the Government, in the 70’s required NFIP insurance on Federally backed loans.
Now all of us who were stupid enough to play by the government rules, pay our taxes, NFIP insurance and try to survive are being thrown under the truck because the federal government does not want to bail out the program it created.
The deficit created by the government program, climate change and rising sea levels due to human greed, is now being balanced on the backs of the people like us who were stupid enough to believe in our government.
It never would have happened in the government had not interfered in the private sector.
Idiots that rebuild their homes in flood zones fail. They Fail to get the idea that the property may re-flood. Geee if the market did not want to take the risk why should the tax payers? Like I said a SUCKA BORN EVERY MIN. UBU’s if you don’t know how business work here’s a scoop for your lead editorial, PROFITS ARE A GOOD THING! NOT LOSSES! OK, OK now I’m evil because I used the “P” WORD. I now read today we are going to dump my tax dollars into the POST OFFICE. Gee another gov’t program subsidised by my tax dollars how nice. Here’s the link for ya! http://www.politico.com/news/stories/0909/27513.html
Interesting that so many blame the government when private industry is the one overcharging and getting rich off the program. We blame government for not keeping private industry honest– but of course we don’t blame the private insurers themselves for their part in the scam and for ripping off the public.
Many are missing the point. The government has been paying regardless of it too much or too little. The government allows this to occur. The government does not know yet (despite payouts) if what paid is too much, too little, or just enought. The government (your tax dollars) is in control of the outflow of money.
There is no greed when willing hands are outstreched to a government that says “hereya go” to any willng recipient.
Many are missing the point. The government has been paying regardless of it too much or too little. The government allows this to occur. The government does not know yet (despite payouts) if what paid is too much, too little, or just enought. The government (your tax dollars) is in control of the outflow of money.
There is no greed when willing hands are outstreched to a government that says “hereya go” to any willng recipient.
Many are missing the point. The government has been paying regardless of it too much or too little. The government allows this to occur. The government does not know yet (despite payouts) if what paid is too much, too little, or just enought. The government (your tax dollars) is in control of the outflow of money.
There is no greed when willing hands are outstreched to a government that says “hereya go” to any willng recipient.
What many of you are missing is that FEMA sets the payments, not the insurance companies. It’s FEMA’s formula. Tell the truth if some one paid you $116 to do something you could do for $100 would YOU return the extra 16 or say that’s too much?
Icee
No Peanuts, your comments don’t make you racist.
They do however clearly define you as a Rebuplican who has been listening to too much Glen Beck & Rush Limbaugh.
Although the WYO program was started in 1983, the original set up for NFIP was in 1968.. that would be under President Nixon.
You remember him – did more to tarnish the office of The President of the US than any man before or after him? Took the country off of the gold standard? Republican?
Nah, you wouldn’t want to remember those things.
So, if the NFIP was failing it could be due to his signing a poor plan into law. Not necessarily President Carter’s fault.
but we don’t know from todays article.
Maybe, but probably not.
Yes, if insurers were paid $116 for work that only cost them $100 to do, I would expect the insurers to speak up. What’s wrong with some honesty? It is after all taxpayers’ money. It is supposed to be a partnership to help people– not for the private sector to see what it can get away with and get rich at public expense. It is their government, too. Why not help the government do a better job rather than complaining about it all the time? You can bet if they were losing money they’d be screaming.
I don’t think there should be any flood insurance period. Because as we know, if you buy it or not, the government will pay in the end anyway, right New Orleans? So the people really getting scammed are the good guys that buy flood insurance, but then their neighbor who didn’t, gets there house fixed with tax dollars. Lets just call it all “A natural disaster” and leave it at that. Government will always screw you in the end!
Andrea,
Do you think it would be cheaper for the government to handle flood insurance. Let’s see, they would have to hire a contractor to underwrite, process, pay claims, etc. Now let’s remember it’s the government so my guess is they would pay at least two times what they are paying the Write Your Own Companies to do this.
They tried this before and it failed…………….
by Richard M. Ebeling
Wednesday, 06 August 2008
With the government budgeted to spend nearly $3 trillion in its current 2008 fiscal year, it should not be surprising that special interest groups of all types flock to Washington, D.C., to lobby for pieces of the budget pie at taxpayers’ expense.
In 2007, over 15,600 registered lobbyists spent more than $2.8 billion to influence federal legislation and tax policy. During the last ten years the number of D.C. lobbyists has increased by one-third, while their spending has almost doubled.
Lobbyists span the political spectrum and represent virtually every sector of the economy and social group. Special interest groups lobby for offensive and defensive reasons. Some pressure groups aggressively lobby to acquire benefits, favors, and government handouts to the detriment of their competitors’ and the taxpayers. Others lobby reactively to prevent the implementation of government regulations and redistributions that might harm them.
But either way, billions are are being spent each year to persuade politicians to use their governmental power in one way or another that otherwise could have been spent more productively in private sector activities.
According to the Center for Responsive Politics, in 2007, organized labor spent over $44.3 million on lobbying members of Congress. Public sector unions shelled out almost $18.5 million last year to influence federal legislation; transportation unions spent nearly $10.6 million, industrial unions spent $6.1 million, and other unions spent in total another $6 million.
On the other hand, business associations of all types spent more than $87.2 million last year on lobbying activities (the U.S. Chamber of Commerce, alone, expended over $52.7 million of this total).
As can be seen in the Table A, below, by industry, pharmaceutical and health product companies spent the most on lobbying in 2007, almost $227 million , followed by insurance ($135.9 million), computers/internet ($110.7 million), electric utilities ($110.6 million), hospital/nursing homes ($91.5 million), and education ($88 million).
In Table B, below, the specific largest individual associations and companies are listed that expended the largest sums on hiring Washington lobbyists in 2007.
Freddie Mac spent $8.5 million and Fannie Mae $5.6 million “persuading” the congressmen who have now assured them a government-guaranteed bailout.
Finally, Table C, below, summarizes the leading policy issues in terms of the number of clients (businesses, unions, associations, non-profits) that hired lobbyists to influence federal legislation in their respective desired directions.
Not surprisingly, the general heading of federal budget and appropriation issues had the largest number of interested parties hiring lobbying firms. After all, this covers a huge number of policy areas for which government can expend monies, impose regulations, or distribute any number of other favors and privileges that can affect the economic well-being of virtually any citizen in the United States.
The specific spending areas that drew the biggest number of clients in 2007, outside of general budget and appropriation decisions, were, respectively, defense, health care issues, taxes, transportation, and energy.
Billions of dollars a year in lobbying activities will continue to be spent in Washington as long as the government has favors and privileges to bestow, and other people’s money to redistribute for the benefit of some at the general taxpayers’ and citizens’ expense
Do you think it would be cheaper for the government to handle flood insurance. lobbying in 2007, almost $227 million , followed by insurance ($135.9 million
As a 10 year veteran of the catastrophe adjusting business, I’ve worked
on numerous State Farm projects, as well as for many other companies.
All with varying degrees of profit potential. What you’re about to read
is worth your time … trust me. It may save you from making a big
mistake.
We’ve all heard the horror stories which have been circulating for years
now, about how bad State Farm often treats it’s independent adjusters,
as well as their policy holders. To date, however, I’ve been mostly
spared the bad trips many other adjusters have experienced. I’ve made
money working for State Farm in the past, but it’s getting more and more
difficult, especially on a large CAT.
Now I have my own nightmare to add to the stories you’ve heard. By the
way, it’s true … they do behave like Nazi’s toward independents on
most of their projects, and care about as little for the independent
adjuster, as they do for their policy holders. For those who have worked
for what’s come to be known as Hitler’s “SF,” you know what I’m talking
about. The latest term I’ve heard to describe them in south Mississippi
is, “The Great Satan.” This is how angry people have become here.
This year I was begged, I mean literally begged by a certain
independent, to come and help them out on their hurricane operation in south Mississippi, because the adjuster before me had
ditched the storm. Fool that I was, I went to try and help out, only to
get the worst screwing I’ve gotten in a very long time.
To begin with, at least a third of the flood files I was given, required
underwriting reformation before a scope could be agreed to, or any
advances issued. This process was taking up to 30 days when I left. Keep
in mind, in many cases these are people out of their homes without
additional living expenses. Many were so upset, that they were either in
tears when I arrived, or furious that they couldn’t get any advance
money. Add to this the problem of closing these files. You can’t close a
flood claim that is being corrected for underwriting errors. You can’t
bill it either. We couldn’t even close our no claims, until what has
come to be known as “The Reformation” is completed on the policy.
When I asked one of their wealthy agents, who’s home I just happened to
be handling for minor flood damage, what an elevated structure was, the
agent admitted to me that she had no clue. And that she had not even
been to a seminar or workshop on the subject, because they were
inconveniently held out of town. Far from being an isolated case, there
are hundreds, possibly thousands of State Farm policy holders all across
the southern Gulf Coast, who are getting screwed more than they usually
do by State Farm, all because the company failed to properly school
and(or) test their agents on how to accurately file the underwriting on
a dwelling flood policy.
But the nightmare doesn’t end there, the poor people in many cases will
owe money when the underwriting errors are corrected, because they were
being undercharged on their coverage, for in some cases YEARS! Try
handling a claim where, because of the hurricane, the policy holder owes
the insurance company money!!! It’s the most negligent situation I’ve
ever encountered since I started adjusting. It wouldn’t surprise me to
see a class action lawsuit against them for this, if their isn’t one
already.
And get this, the policy holders all say that after they purchased their
policies, someone came out and inspected their homes in order to verify
the application. Makes you wonder who’s watching the store here.
Amazing how these hypocritical bastards will nickel and dime the poor
people to death, meticulously handling their disaster claims to
undeniable lean accuracy. Only to handle the underwriting with such a
disregard for correctness, as to cause a second catastrophe in the poor
people’s lives.
It’s as if someone owned a grocery store, who didn’t care to manage the
receipts for his wholesale inventory, but managed to death, the check
out clerks, the bagboys, and the customers for shoplifting concerns.
Going so far as to do body cavity searches of everyone who dares leave
the store with any merchandise, even though the goods are already paid
for.
What’s worse, when I arrived at the CAT two weeks after the storm, no
one informed me how bad things were, because all they were looking for
at that point were warm bodies to help control the dam break of
underwriting errors. Many of the adjusters before me had already fled
the situation.
Little did I know that the underwriting problems had created an
apparently dire legal or political situation, whereby we were told that
the storm office had to be closed by Thanksgiving. This created an extra
element of stress during the operation, that became a nightmare for me
personally. I have a hard time dealing with people who are angry for
good reason. It’s hard to put a value on your labor under those kinds of
circumstances, because you have to spend so much of your time hand
holding. Work like this should be billed at time and expense, or a daily
rate, it’s that simple.
Rumor is that the Mississippi State insurance commissioner has caught
wind of the big mishap, and is coming down hard on State Farm, forcing
them to rush their claims to completion. Keep in mind that you will
probably not be paid for the time and effort you put into the files you
cannot close before they are reassigned. This is common practice with
State Farm, stealing labor, and don’t kid yourself, the adjusting firms
you are working for don’t give a damn about you or your money, because
they will get theirs, regardless.
When I received my files, many of the insured’s were complaining that we
were the third and fourth adjuster who had contacted them. This was only
two weeks into the storm! Why, because it’s getting hard to find good
adjuster’s willing to be a part of the “SF.” They simply don’t pay
enough for the garbage you have to put up with, and it creates
underlying resentment throughout the whole operation. They seem to take
pride in denying people all the they can, and that includes denying the
independent adjuster a fair return on their investment of time and
labor. I swear, working in one of their offices, is often like working
in a maximum security prison. You have no freedom to do anything, except
kiss the guards asses continually, while they strip you of every bit of
pride you ever had in your work. Their arrogance is unequaled in the
industry, and as I have said, I have worked for just about everybody at
one time or another.
My advice. Never ever work for a State Farm catastrophe operation,
unless it’s minor wind or hail, or you get lucky and are working in an
independent’s branch completely separated from their offices. Otherwise,
you will have to put up with 10 times more crap than working for anyone
else, and if you’re lucky, you’ll make even less money.
One of the reasons I’ve always liked adjusting property claims in a
disaster situation, was because I felt like I was helping people.
Working for State Farm, I rarely have that feeling. Instead, I have the
feeling that I’m screwing people, and it’s awful. You go home tired at
night, after spending all day on your inspections, and you think about
all the people you screwed that day, because by the time you get done
with withholding their roof tear-off, and their depreciation, and their
hurricane deductible, they are left with nothing, except a premium
notice that just keeps on coming, year after year. This business has
gone down hill precipitously since I got into it ten years ago, and I’m
seriously thinking of leaving the industry. I just don’t get that good
feeling I used to, especially working for the Great Satan.
Which brings to mind something that just bugs the crap out of me. One of
the worst things State Farm does, in my opinion, is consider partial
roof replacement a betterment. I wish someone would challenge this in
court, again and again if necessary, because if I was sitting on a jury,
I would throw Holy Water all over them on this issue. It’s insane to
call slope replacement a betterment, and we all know it. In the mind of
the average Joe it’s a repair, because in most people’s minds the word
“roof” is singular.
I have been told that there is a famed attorney who might be willing to
make our case, due to some common interest in another action he’s
undertaken, and which is currently pending against State Farm, by the
policy the holders in the state of Mississippi. Let’s face it, our
testimony could be devastating to State Farm, if we spoke on behalf of
the policy holders in any courtroom in the land. It could be the
greatest bombshell ever to hit the industry, and one well deserved.
We all know that attorney. He has been disbarred and thrown in jail for his illegal activities.
The GAO studied and reported on six of the largest WYO carriers. During the three policy years beginning 2005 and ending 2007, FEMA paid these carriers $327.1 million more than their actual expenses. This translates to a 16.5 percent overpayment.
On june 2 2011 fema “redesigned” all of their floodplain maps. resulting in anyone living near a ditch being classified as flood zone A. They then notified all banks, that if they did not require flood insurance on these loans, they would be fined for each property.
Fema dictates who is in a flood zone. Fema dictates the rates. Fema sells flood insurance. Look up racketeering on wikipedia. Now, all you people who have had this money stolen from you go to your county assesors office, and ask to have your property tax reduced, because your property has been rendered unmarketable.
Fema “redesigned” their floodzone maps in june 2011. Is this suspicious.