Does the whole of the remaining property insurance market in Florida have the capacity to pick up State Farm’s 1.2 million policyholders and the accompanying exposures as well as their share of the residual market? Just how much do you suppose will end up in Citizens?
Only IJ would be kind enough to provide a hypertext link to a directory that allows you to find the story you just linked from.
Thanks IJ… the ability to find the story I just read is wonderful, I’m sure CNN.com was working on the same technology and is jealous you beat them to it!
This is exactly why insurance should remain regulated at the state level. Please let your federal representatives know that you prefer state insurance regulation because it protects the consumers best.
State Farm is in business to make a profit, just like every other business. This has nothing to do with protecting the consumer. Florida presents unusually high risks of loss EVERY YEAR. But of course the old retirees don’t want to pay a fair price to cover that exposure. How many times would you pay for someone to repair or rebuild their home? This is the same state that refused to pay an additional $200 per home for hurrican straps that would significantly mitigate hurricane damage. They’re getting what they deserve.
two state official have said different things this week: the gov said it might be a blessing if SF withdrew and those customer went to other markets. so why is the commissioner against it?
Well, Dan I agree with you’re saying, but my point is that Commissioner McCarty is not necessarily saying he’s opposed to the pullout, but what he is saying, because Insurance is based on State contract law, is that the citizens will be protected. Under a federal charter, companies could pull in and out of markets at will. Other companies will write in FL if it is profitable. Artificial rate suppression and “government insurance (citizens)” do not encourage private markets. LA is a good example. Companies are coming back to that area because it is a friendly regulatory environment.
is it ethical for State Farm to disclose customer data to the state? I don’t believe that it would be lawful or ethical for State Farm to disclose that information to Farmers, or Allstate. What will the State do with that information?
You said consumer advocats run the State Insurance Department I still think that would be a great thing. I do Belive If that were the case alot of people would be behind bars.
Mr. Solvent
Comment:
Usually I side with insurance companies in these situations. Unfortunately after pouring through all 60 pages of this ruling, State Farm did not make their case. They choose to operate State Farm Mutual and State Farm Florida as separate companies, unlike any other state. The judge suggested that purchasing reinsurance from the parent is a sham.
Additionally, State Farm wants to spend a fortune in marketing a product they no longer sell. Sorry guys, try again later.
The Florida-only affiliate of Illinois-based State Farm Insurance Co. failed to show its requested rate was not excessive, inadequate or unfairly discriminatory, Judge Daniel Manry wrote in a recommended order.
Florida Insurance Commissioner Kevin McCarty now has 30 days to issue a final order.
McCarty earlier this year rejected the company’s proposal, but State Farm appealed. He found State Farm failed to submit sufficient data to support such a massive increase. It would range from 23 percent in inland areas to 86 percent along Florida’s coasts.
State Farm issued a statement disputing the judge’s findings, arguing the increase is justified to stabilize the company’s deteriorating financial condition and serve its customers
Like a good neighbor, State Farm is _____.
Oops, I guess not. Let’s see, if we only write business in areas where we have no risk of paying claims. What a novel way to make money.
Based on this last comment many of you are not aware that it is a major responsibility of any insurance department to make sure that insurers are also solvent. You do this in part by making sure the rates reflect the exposure. If they don’t allow for adequate rates in the specific state the insurance company will not be able to pay claims. This is half of the job of an insurance commissioner and has been forgotten in Florida. Consumer advocates (by their definition) run the state insurance departement and apparently the rest of state government to the severe detriment of the people of the state.
THAT MY FRIEND IS COMMON SENSE
Comment:
February 14, 2008
State Farm Hit With Civil RICO Claim Over Sham Medical Exams
State Farm has been sued for racketeering in New York with a claim that it conspired with “Independent Medical Exam” companies and medical practitioners to produce fraudulent and sham medical reports. The suit, filed January 30th in the Eastern District of New York, is brought under the Racketeer Influenced Corrupt Organization Act (RICO). (This story has been previously reported.
I live in the midwest and State Farm is my homeowners insurer. After a bunch of hail storms in my state, my HO rates have increased, but when I checked, State Farm still had the lowest rates of any major insurer.
It would seem to me that if State Farm continues to lose money by doing business in Florida, then eventually MY rates would have to reflect would need to rise.
If the politicians in Florida know how to underwrite property insurance better than State Farm, then they are certainly free to go to Tallahassee and start a new insurance company. If they can sustain lower rates, the market forces will assure their success
: protect their empire from the
Comment:
Hey Governor Crist
Posted On: February 1, 2009, 12:47 pm CST
Posted By: TO THE TOUCHABLES
Comment:
Edward B. Rust, Jr., will be happy to tell you that he is the Chief Executive Officer of State Farm Mutual Insurance Company. He has deep family ties to State Farm, as his father and grand father have both served in that capacity. He will also tell you that he is an educated man who has been to law school and is a past practicing attorney. In addition, he was the chairman of the Coalition for Excellence in Education and a member of George W. Bush’s transition advisory team on education. So with all of that education why will he not deal with his company’s inbred greed. Does he not know that we are in the 21st century where anyone can look on the internet and see the billions of dollars that are being spent to protect their empire from the consumer? In Utah, the company was fine $25 million in punitive damages, in part for the “systematic destruction of documents and systematic manipulation of individual claim files to conceal claim mishandling”. An Idaho appeals court fined the company $9.5 million in punitive damages for making use of “a completely bogus” outside bill review company that helped lower the cost of medical bills. In October of 1999, an Illinois jury rendered a $456 million judgment against State Farm and an additional $730 million in punitive damages for the with auto policy holders by relying on generic replacement parts. Rust was adamant in his insistence that fraud had not been committed. A class action law suit in the name of State Farm policy holders was filed in 2003 for breach of contract and statutory consumer fraud in which $1.1 billion was awarded to plaintiffs. When a company is misleading the public, should that not be considered fraud? A consumer would go to prison for that type of behavior. State Farm will let you know that, in several states, fraud and abuse is pushing up the cost of auto insurance. A court in late 2001 reached an unfriendly consumer decision that could have the effect of reaching deep into the pockets of the consumer. Sharply higher jury awards in vehicular liability cases are putting additional upward pressure on auto insurance rates. The average jury award in auto liability cases rose from $187,000 to $269,000 in 2000, an increase of 44%. I question if any of the lawsuits would be necessary if the company would just fairly pay their claims. The company represents on their web-site that consumer protection is one of their most important goals, but do they really think that courts would be awarding multiple millions of dollars in bad faith claims if that were their emphasis? State Farm’s ratings are based on their financial strength. State Farm states that their high ratings are also based on strong claims paying ability. With this ability, why is it necessary for their policy holders to allege that the claims department was directed, in evaluating their cases, to take them to trial instead of settling within the limits of the policy? This practice exposed policyholders to judgments above the limits of their policies, when the company was attempting to make an effort to win smaller decisions. Two former in-house attorneys for State Farm contend that they were often called upon by the insurer to represent its’ policy holders and were forced to commit “unlawful and unethical activities, including requiring the two to stay silent about the rights of the policyholders”. State Farm seems to have reckless indifference for the truth for the purpose of corporate and personal economic gain. State Farm should know that continued scrutiny of their claims paying practices will continue . A message to Mr. Rust, and any employee of the company that is acting in bad faith for its policy holders. WE SEEN YOUR E-MAILS READ ABOUT YOUR CD,S READ ABOUT THE REQUESTED AND PERMISSION TO MOVE RECORDS OUT OF FLORIDA FOR THE YEARS 2002 2003 2004. HOW NICE FOR YOU. WHAT WE NEED A EXAMINATION OF ALL CORPORATE RECORDS ALL TAPE MADE ALL VIDEOS LOOK AT FORENSIC,S ANALYSIS ENGINEERS CORP AND E.A. RENFROECO OF HOOVER .
TO Commissioner Kevin McCarty
Comment:
THAT MY FRIEND IS COMMON SENSE
Comment:
February 14, 2008
State Farm Hit With Civil RICO Claim Over Sham Medical Exams
State Farm has been sued for racketeering in New York with a claim that it conspired with “Independent Medical Exam” companies and medical practitioners to produce fraudulent and sham medical reports. The suit, filed January 30th in the Eastern District of New York, is brought under the Racketeer Influenced Corrupt Organization Act (RICO). (This story has been previously reported.
pressuring its engineers to alter reports on storm-damaged homes so that water, not wind, could be blamed for damage.
Is it ethical for State Farm to do this to customer ?What will the State do with that information?
Let’s see, if we only write business in areas where we have no risk of paying claims. What a novel way to make money.And has been sued racketeering Is it ethical for State Farm to do this to customer?
Does the whole of the remaining property insurance market in Florida have the capacity to pick up State Farm’s 1.2 million policyholders and the accompanying exposures as well as their share of the residual market? Just how much do you suppose will end up in Citizens?
Only IJ would be kind enough to provide a hypertext link to a directory that allows you to find the story you just linked from.
Thanks IJ… the ability to find the story I just read is wonderful, I’m sure CNN.com was working on the same technology and is jealous you beat them to it!
Kevin is an a55H0lE
This is exactly why insurance should remain regulated at the state level. Please let your federal representatives know that you prefer state insurance regulation because it protects the consumers best.
State Farm is in business to make a profit, just like every other business. This has nothing to do with protecting the consumer. Florida presents unusually high risks of loss EVERY YEAR. But of course the old retirees don’t want to pay a fair price to cover that exposure. How many times would you pay for someone to repair or rebuild their home? This is the same state that refused to pay an additional $200 per home for hurrican straps that would significantly mitigate hurricane damage. They’re getting what they deserve.
two state official have said different things this week: the gov said it might be a blessing if SF withdrew and those customer went to other markets. so why is the commissioner against it?
Well, Dan I agree with you’re saying, but my point is that Commissioner McCarty is not necessarily saying he’s opposed to the pullout, but what he is saying, because Insurance is based on State contract law, is that the citizens will be protected. Under a federal charter, companies could pull in and out of markets at will. Other companies will write in FL if it is profitable. Artificial rate suppression and “government insurance (citizens)” do not encourage private markets. LA is a good example. Companies are coming back to that area because it is a friendly regulatory environment.
is it ethical for State Farm to disclose customer data to the state? I don’t believe that it would be lawful or ethical for State Farm to disclose that information to Farmers, or Allstate. What will the State do with that information?
You said consumer advocats run the State Insurance Department I still think that would be a great thing. I do Belive If that were the case alot of people would be behind bars.
Mr. Solvent
Comment:
Usually I side with insurance companies in these situations. Unfortunately after pouring through all 60 pages of this ruling, State Farm did not make their case. They choose to operate State Farm Mutual and State Farm Florida as separate companies, unlike any other state. The judge suggested that purchasing reinsurance from the parent is a sham.
Additionally, State Farm wants to spend a fortune in marketing a product they no longer sell. Sorry guys, try again later.
The Florida-only affiliate of Illinois-based State Farm Insurance Co. failed to show its requested rate was not excessive, inadequate or unfairly discriminatory, Judge Daniel Manry wrote in a recommended order.
Florida Insurance Commissioner Kevin McCarty now has 30 days to issue a final order.
McCarty earlier this year rejected the company’s proposal, but State Farm appealed. He found State Farm failed to submit sufficient data to support such a massive increase. It would range from 23 percent in inland areas to 86 percent along Florida’s coasts.
State Farm issued a statement disputing the judge’s findings, arguing the increase is justified to stabilize the company’s deteriorating financial condition and serve its customers
pressuring its engineers to alter reports on storm-damaged homes so that water, not wind, could be blamed for damage.
Is it ethical for State Farm to do this to customer ?What will the State do with that information?
Lonny Claycamp
Like a good neighbor, State Farm is _____.
Oops, I guess not. Let’s see, if we only write business in areas where we have no risk of paying claims. What a novel way to make money.
Please let your federal representatives know that you prefer REGULATION TO COME FROM CONSUMER AFFAIRS NOT PEOPLE WHO ARE PAID BY THE INS.
Based on this last comment many of you are not aware that it is a major responsibility of any insurance department to make sure that insurers are also solvent. You do this in part by making sure the rates reflect the exposure. If they don’t allow for adequate rates in the specific state the insurance company will not be able to pay claims. This is half of the job of an insurance commissioner and has been forgotten in Florida. Consumer advocates (by their definition) run the state insurance departement and apparently the rest of state government to the severe detriment of the people of the state.
THAT MY FRIEND IS COMMON SENSE
Comment:
February 14, 2008
State Farm Hit With Civil RICO Claim Over Sham Medical Exams
State Farm has been sued for racketeering in New York with a claim that it conspired with “Independent Medical Exam” companies and medical practitioners to produce fraudulent and sham medical reports. The suit, filed January 30th in the Eastern District of New York, is brought under the Racketeer Influenced Corrupt Organization Act (RICO). (This story has been previously reported.
I think tht State Farm has this one right!
I live in the midwest and State Farm is my homeowners insurer. After a bunch of hail storms in my state, my HO rates have increased, but when I checked, State Farm still had the lowest rates of any major insurer.
It would seem to me that if State Farm continues to lose money by doing business in Florida, then eventually MY rates would have to reflect would need to rise.
If the politicians in Florida know how to underwrite property insurance better than State Farm, then they are certainly free to go to Tallahassee and start a new insurance company. If they can sustain lower rates, the market forces will assure their success
: protect their empire from the
Comment:
Hey Governor Crist
Posted On: February 1, 2009, 12:47 pm CST
Posted By: TO THE TOUCHABLES
Comment:
Edward B. Rust, Jr., will be happy to tell you that he is the Chief Executive Officer of State Farm Mutual Insurance Company. He has deep family ties to State Farm, as his father and grand father have both served in that capacity. He will also tell you that he is an educated man who has been to law school and is a past practicing attorney. In addition, he was the chairman of the Coalition for Excellence in Education and a member of George W. Bush’s transition advisory team on education. So with all of that education why will he not deal with his company’s inbred greed. Does he not know that we are in the 21st century where anyone can look on the internet and see the billions of dollars that are being spent to protect their empire from the consumer? In Utah, the company was fine $25 million in punitive damages, in part for the “systematic destruction of documents and systematic manipulation of individual claim files to conceal claim mishandling”. An Idaho appeals court fined the company $9.5 million in punitive damages for making use of “a completely bogus” outside bill review company that helped lower the cost of medical bills. In October of 1999, an Illinois jury rendered a $456 million judgment against State Farm and an additional $730 million in punitive damages for the with auto policy holders by relying on generic replacement parts. Rust was adamant in his insistence that fraud had not been committed. A class action law suit in the name of State Farm policy holders was filed in 2003 for breach of contract and statutory consumer fraud in which $1.1 billion was awarded to plaintiffs. When a company is misleading the public, should that not be considered fraud? A consumer would go to prison for that type of behavior. State Farm will let you know that, in several states, fraud and abuse is pushing up the cost of auto insurance. A court in late 2001 reached an unfriendly consumer decision that could have the effect of reaching deep into the pockets of the consumer. Sharply higher jury awards in vehicular liability cases are putting additional upward pressure on auto insurance rates. The average jury award in auto liability cases rose from $187,000 to $269,000 in 2000, an increase of 44%. I question if any of the lawsuits would be necessary if the company would just fairly pay their claims. The company represents on their web-site that consumer protection is one of their most important goals, but do they really think that courts would be awarding multiple millions of dollars in bad faith claims if that were their emphasis? State Farm’s ratings are based on their financial strength. State Farm states that their high ratings are also based on strong claims paying ability. With this ability, why is it necessary for their policy holders to allege that the claims department was directed, in evaluating their cases, to take them to trial instead of settling within the limits of the policy? This practice exposed policyholders to judgments above the limits of their policies, when the company was attempting to make an effort to win smaller decisions. Two former in-house attorneys for State Farm contend that they were often called upon by the insurer to represent its’ policy holders and were forced to commit “unlawful and unethical activities, including requiring the two to stay silent about the rights of the policyholders”. State Farm seems to have reckless indifference for the truth for the purpose of corporate and personal economic gain. State Farm should know that continued scrutiny of their claims paying practices will continue . A message to Mr. Rust, and any employee of the company that is acting in bad faith for its policy holders. WE SEEN YOUR E-MAILS READ ABOUT YOUR CD,S READ ABOUT THE REQUESTED AND PERMISSION TO MOVE RECORDS OUT OF FLORIDA FOR THE YEARS 2002 2003 2004. HOW NICE FOR YOU. WHAT WE NEED A EXAMINATION OF ALL CORPORATE RECORDS ALL TAPE MADE ALL VIDEOS LOOK AT FORENSIC,S ANALYSIS ENGINEERS CORP AND E.A. RENFROECO OF HOOVER .
TO Commissioner Kevin McCarty
Comment:
THAT MY FRIEND IS COMMON SENSE
Comment:
February 14, 2008
State Farm Hit With Civil RICO Claim Over Sham Medical Exams
State Farm has been sued for racketeering in New York with a claim that it conspired with “Independent Medical Exam” companies and medical practitioners to produce fraudulent and sham medical reports. The suit, filed January 30th in the Eastern District of New York, is brought under the Racketeer Influenced Corrupt Organization Act (RICO). (This story has been previously reported.
How many of the same cut and paste garbage on different postings do you plan? At least come up with fresh ^&*(.
pressuring its engineers to alter reports on storm-damaged homes so that water, not wind, could be blamed for damage.
Is it ethical for State Farm to do this to customer ?What will the State do with that information?
Let’s see, if we only write business in areas where we have no risk of paying claims. What a novel way to make money.And has been sued racketeering Is it ethical for State Farm to do this to customer?
I would say any business that can’t make a profit in an area for a certain product should stop doing it. They have. End of case.