I don’t like to speculate but I believe one of those 6 to 10 will be a company that wrote too much business with too little reinsurance all with unlicensed individuals.
We will find out there is no OZ behind the curtain.
This is a ponzi that would make Bernie Madof blush. FIGA better get ready to assess the policy holders of Florida. State of Florida will make California look its flush with cash. Charlie Crist should go ahead and make his airline reservations now to Washington DC, before the state wont be able to afford the trip for him.
I am utterly shocked since I was under the impression that Demotech was more like a membership that you paid into to get the ratings you wanted. You know, like country club, gym, etc….
Absolutely right – at Demotech, everyone gets an A. Just go to their website and look up their FSR Update. All those companies get an A rating.
Demotech also shows how worthless they are when it comes to People’s Trust. How can they continue to give an A rating to a company that has been in business only 1 year, only has $7.3 million in total reserves, and were just forced to stop selling insurance by Alex Sink because of having unlicensed sales people, improper claims handling, inadequate insurance experience for their executives, and inadequate reinsurance. But Demotehc continues to give them an A rating.
so, if i have read part of this article, “Demotech initiated a review of all domestic carriers in March in light of the state’s overall market difficulties and a projected funding shortfall in state’s backup hurricane insurance fund. Among the issues Demotech has been studying is whether the carriers have contingency plans in the event there is any delay in their repayment from the state hurricane fund after a major storm.”
did this mean that the funds are to be used by carriers w/in the state? i thought this was used to help protect the state’s own insurance or for those who don’t have any insurance? this hurricane funding is a disaster anyways, because they are still in debt repaying from previous hurricane damage.
as you can see, most of the small companies are asking for increase in rates and were told to lower them. in one case they told a carrier to slow down! WAIT – is this supposed to be a capital business environment? um…um… sounds like the state is going to wind up in court. with the many companies that are leaving, they need someone to write policies. you have too many small companies and a few major companies stepping out.
so if the insurance commish told companies to lower their premiums, did they lower it for the state insurance? probably not, because they do have a shortfall. if i had a company, i’d be checking those rates compared to what they used to be. then compare it to my company’s. i bet the state is so underfunded with the state insurance company that it’s using the funds from all the other companies to help it out, hence the florida hurrican fund. again, which is still paying for losses in the past. as a consumer and new to the state, i would sue the state for my money being spent on the past losses since i did not live their prior to the losses. what happens if they don’t have to use the funds? are they going to get a refund?
If I understand all of this, the State of Florida is taking on more and more debt to pay hurricane claims but that is what insurance companies are supposed to do????!!!!!
Why not let the insurance companies pay claims and have the state fix the potholes on I-95?
TO THE UNTOUCHABLES. 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 insurer’s breach of contract 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 to be investigated.
BILOXI, Miss. (MCT) — In some cases, State Farm’s top leadership prefers not to share or even keep records that offer insight into how policyholder claims are handled, according to court records.
Chairman and CEO Edward B. Rust Jr. said in sworn testimony earlier this month that no minutes are kept of quarterly meetings held by the company’s top management, the Chairman’s Council, and that policyholders have no right to information about an investigation State Farm Insurance Cos. has ordered of its relationship with Haag Engineering Co.
State Farm spokesman Phil Supple said the company doesn’t “intend to-;try this-;case in the media.”
“State Farm stands by testimony given by President and Vice Chairman Vince Trosino, who said when asked about these allegations, ‘It’s not part of our system. It’s not part of our core values. It’s not what made us the most successful property and casualty insurer, life insurer, in the country.'”
Juries in two states, Texas and Oklahoma, have found Haag provided biased reports to State Farm to minimize or deny policyholder claims. Mississippi’s attorney general currently is conducting a grand jury investigation to determine whether State Farm and other insurers denied Hurricane Katrina claims through the use of fraudulent engineering reports.
Haag denies bias, but State Farm suspended business with the company in June and ordered an independent investigation after an Oklahoma jury awarded a total of $13 million to a policyholder over tornado damages. Subsequent trials are set to determine damages for 70 other policyholders, all of whom had claims investigated by Haag.
In past court cases, judges have chastised and even fined State Farm for withholding records the company was ordered to produce. Evidence the company destroyed documents has been presented in several cases.
In the Oklahoma case, after State Farm finally turned over to the court a “claims legal research” DVD and other records, Judge Richard G. Van Dyck told company attorneys
“As I was watching these tapes I just want to say this for the record, the hair on the back of my neck did — did stand up because I was seeing things there that early on in this case I was told by (State Farm) defense counsel didn’t exist and couldn’t be produced. So I’m not real happy with that and I want to remind all counsel that their ethical responsibilities as attorneys outweigh the wishes of their clients.”
Gary T. Fye, an expert in the analysis of disputed insurance claims who lives in Nevada, often testifies in insurance cases. Fye, who said he has testified on behalf of policyholders and insurance companies, has provided the courts information on State Farm’s history of destroying and withholding records.
In 1998, Fye wrote in a Florida case
“I have been witnessing document destruction, concealment, and obstruction of discovery by State Farm for many years in connection with my review of internal claim practices documents of the insurer. I have accumulated certain Exhibits which show the company’s goals and objectives for document handling by its employees. The documents show close to 28 years of intentional destruction, concealment and distortion of claim practices records.”
In some cases, company executives did not keep records.
Jeff Marr, the attorney suing State Farm in Oklahoma, took sworn testimony Sept. 6 from Rust. Topics included Rust’s Chairman’s Council, made up of top State Farm executives. The group, which includes the company’s general counsel, meets quarterly.
Marr was fishing for records of those meetings that he could subpoena for his lawsuit.
“Certainly,” Marr asked Rust, “you keep records of the quarterly meetings where the entire Chairman’s Council is present?”
“We have an agenda,” Rust said, “but minutes in that, no.”
“Why not?” Marr asked.
Rust replied, “Never felt a need to.”
Marr later asked, “Are there any written agendas that are available should I choose to request them in the lawsuit?”
“I’m not sure what might be available,” Rust said.
Rust also said policyholders, who essentially own the private mutual company, are not entitled to know what the Chairman’s Council discusses or decides about litigation against State Farm, citing attorney-client privilege.
Marr questioned why the company would withhold information from policyholders, who own State Farm.
“Well, again,” said Rust (who has a law degree), “I’m not an expert in the area, but I think as you find — even if I’m a shareholder in a publicly traded company, there are things that are not — you know, I do not have access to.”
Marr later asked if policyholders have a right to see documents from State Farm’s investigation of Haag.
“No,” Rust said.
“Why not?” Marr asked. “Is it privileged?”
Rust said, “I believe so
Subject Posted By Posted On
ED RUST JR TOJail with Alberto R. Gonzales criminal investigation Jan 12, 2009, 7:11 pm
WAKE UP TO THE REAL WORLD. THAT’S THE ONLY WAY TO SAY IT. THIS CASE WILL KEEP YOU ON THE PATH IF YOU WILL WAKE UP. IT’S UP TO YOU. THE CASE IS BEFORE YOU. WILL YOU LOOK AWAY OR WILL YOU SAY NO MORE TAKING ADVANTAGE. WE THE PEOPLE WILL NOT LOOK AWAY. NOT NOW, NOT EVER. THANK YOU, ANITA LEE, FOR YOUR COURAGE. THANK GOD SOMEONE DOES THE REAL REPORTING. NOT TOO MANY LEFT, SO ENJOY THE TRUTH OF THIS STORY THAT WAS NOT TO BE IN THE MEDIA. THE TRUTH WILL SET YOU FREE.
http://www.youtube.com/watch?v=9PMwTwY7SUs what will happen when an actual storm occurs and there are actual claims?
YOU know what will happen people will not be paid. DID YOU FORGET ABOUT STATE FARM? THEY CAN DO ANYTHING TO PEOPLE AND SEEM TO BE OKAY WITH IT AND THAN THEY CAN SEAL UP COURT RECORDS HOW NICE FOR THEM. THEY CAN PUT THIS BS ON YOU TUBE BUT PEOPLE HAVE OUT SMARTED THEM WITH THE TRUTH. IF YOU HAVE STATE FARM YOU WILL NOT BE HELPED AND IF YOU THINK YOU WILL THINK AGAIN WE SAY GO THEW YOUR MONEY AWAY BEFORE YOU GIVE IT TO STATE FARM INSURANCE.
“I have been witnessing document destruction, concealment, and obstruction of discovery by State Farm for many years in connection with my review of internal claim practices documents of the insurer. I have accumulated certain Exhibits which show the company’s goals and objectives for document handling by its employees. The documents show close to 28 years of intentional destruction, concealment and distortion of claim practices records.”
In some cases, company executives did not keep records.
Jeff Marr, the attorney suing State Farm in Oklahoma, took sworn testimony Sept. 6 from Rust. Topics included Rust’s Chairman’s Council, made up of top State Farm executives. The group, which includes the company’s general counsel, meets quarterly.
Marr was fishing for records of those meetings that he could subpoena for his lawsuit.
“Certainly,” Marr asked Rust, “you keep records of the quarterly meetings where the entire Chairman’s Council is present?”
“We have an agenda,” Rust said, “but minutes in that, no.”
“Why not?” Marr asked.
Rust replied, “Never felt a need to.”
Marr later asked, “Are there any written agendas that are available should I choose to request them in the lawsuit?”
“I’m not sure what might be available,” Rust said.
Rust also said policyholders, who essentially own the private mutual company, are not entitled to know what the Chairman’s Council discusses or decides about litigation against State Farm, citing attorney-client privilege.
Marr questioned why the company would withhold information from policyholders, who own State Farm.
“Well, again,” said Rust (who has a law degree), “I’m not an expert in the area, but I think as you find — even if I’m a shareholder in a publicly traded company, there are things that are not — you know, I do not have access to.”
Marr later asked if policyholders have a right to see documents from State Farm’s investigation of Haag.
“No,” Rust said.
“Why not?” Marr asked. “Is it privileged?”
Rust said, “I believe so
Subject Posted By Posted On
ED RUST JR TOJail with Alberto R. Gonzales criminal investigation Jan 12, 2009, 7:11 pm
WAKE UP TO THE REAL WORLD. THAT’S THE ONLY WAY TO SAY IT. THIS CASE WILL KEEP YOU ON THE PATH IF YOU WILL WAKE UP. IT’S UP TO YOU. THE CASE IS BEFORE YOU. WILL YOU LOOK AWAY OR WILL YOU SAY NO MORE TAKING ADVANTAGE. WE THE PEOPLE WILL NOT LOOK AWAY. NOT NOW, NOT EVER. THANK YOU, ANITA LEE, FOR YOUR COURAGE. THANK GOD SOMEONE DOES THE REAL REPORTING. NOT TOO MANY LEFT, SO ENJOY THE TRUTH OF THIS STORY THAT WAS NOT TO BE IN THE MEDIA. THE TRUTH WILL SET YOU FREE
Let me see if I understand the situation in Florida – the largest insurance company in the world – State Farmk, a direct writer – is despised. Then, small insurance companies that just got started and are rated by Demoteck are despised. However, everybody in the middle is ignored?
Maybe Peoples Trust has it right, who needs agents?
Through their thorough examination, Demotech has determined that Coral & USIC should be downgraded. Great job. I know I certainly didn’t see this coming.
About 10 days before Peoples Trust was shut down, they wrote one our clients we had insured that had a frame home, gable roof, & was classified as a PC10. Unfortunately for the client, these rating factors were correct. When the client showed us the Peoples Trust dec page, it was rated masonary, hip, & PC3. They have no idea what they’re doing and I am sure their reinsurance carriers now probably know it.
Yeah sure, they are solvent until the next 25mph wind comes. Come back here the day *AFTER* a storm to see if they will be around. You, I and Demotech know they can’t pay damages from a major storm.
I guess People’s Trust COULD be solvent depending on what the definition of “solvent” would be. You know, they can handle a small storm, few lightning strikes, etc.
However we ARE certain that they don’t know much about what they’re doing, their advertising is deceptive, and ethics are questionable. Jake, you should leave there as soon as possible.
I don’t get your logic. The insurance industry suffers from a lot of misconceptions and unfavorable public opinion.
How did you get to the conclusion that People’s Trust got it right???
Weren’t they just shut down by the insurance dept in Florida after only one year in operations? Didn’t the insurance dept say they were skirting Florida law by selling policies through unlicensed sales people? Didn’t the also get tagged for improper claims handling, inadequate insurance experience for their executives, and inadequate reinsurance to back up their claims?
I don’t think Pople’s Trust got anything right. They botched it in a big way.
I don’t like to speculate but I believe one of those 6 to 10 will be a company that wrote too much business with too little reinsurance all with unlicensed individuals.
I guess they forgot to pay Demotech for their fictional rating.
Demotech is not a real rating agency. Everyone gets an A, if you pay them enough.
Out of curiosity, what will happen when an actual storm occurs and there are actual claims?
We will find out there is no OZ behind the curtain.
This is a ponzi that would make Bernie Madof blush. FIGA better get ready to assess the policy holders of Florida. State of Florida will make California look its flush with cash. Charlie Crist should go ahead and make his airline reservations now to Washington DC, before the state wont be able to afford the trip for him.
I looked at the list of companies that are rated by Demoteck. Most are also rated by Best. Since when do companies have to have two ratings?
I am utterly shocked since I was under the impression that Demotech was more like a membership that you paid into to get the ratings you wanted. You know, like country club, gym, etc….
Wow…
I thought that these firms had “A” Demotech Rating. I didn’t realize it was Demotech’s “A” Rating…That’s impressive!
Or is it?
Absolutely right – at Demotech, everyone gets an A. Just go to their website and look up their FSR Update. All those companies get an A rating.
Demotech also shows how worthless they are when it comes to People’s Trust. How can they continue to give an A rating to a company that has been in business only 1 year, only has $7.3 million in total reserves, and were just forced to stop selling insurance by Alex Sink because of having unlicensed sales people, improper claims handling, inadequate insurance experience for their executives, and inadequate reinsurance. But Demotehc continues to give them an A rating.
Demotech is an absolute joke!
If demotech is so bad, why are their ratings and Best ratings so close for the companies that they both rate? Maybe Demotech is doing a decent job.
If these companies are bad, shouldn’t the State should shut them down? Isn’t the Department of Insurance supposed to protect us?
so, if i have read part of this article, “Demotech initiated a review of all domestic carriers in March in light of the state’s overall market difficulties and a projected funding shortfall in state’s backup hurricane insurance fund. Among the issues Demotech has been studying is whether the carriers have contingency plans in the event there is any delay in their repayment from the state hurricane fund after a major storm.”
did this mean that the funds are to be used by carriers w/in the state? i thought this was used to help protect the state’s own insurance or for those who don’t have any insurance? this hurricane funding is a disaster anyways, because they are still in debt repaying from previous hurricane damage.
as you can see, most of the small companies are asking for increase in rates and were told to lower them. in one case they told a carrier to slow down! WAIT – is this supposed to be a capital business environment? um…um… sounds like the state is going to wind up in court. with the many companies that are leaving, they need someone to write policies. you have too many small companies and a few major companies stepping out.
so if the insurance commish told companies to lower their premiums, did they lower it for the state insurance? probably not, because they do have a shortfall. if i had a company, i’d be checking those rates compared to what they used to be. then compare it to my company’s. i bet the state is so underfunded with the state insurance company that it’s using the funds from all the other companies to help it out, hence the florida hurrican fund. again, which is still paying for losses in the past. as a consumer and new to the state, i would sue the state for my money being spent on the past losses since i did not live their prior to the losses. what happens if they don’t have to use the funds? are they going to get a refund?
State Farm is an honorable, reputable and strong company. They insure about 1/4 of the cars in the country and about 1/5 of the homes.
If I understand all of this, the State of Florida is taking on more and more debt to pay hurricane claims but that is what insurance companies are supposed to do????!!!!!
Why not let the insurance companies pay claims and have the state fix the potholes on I-95?
This makes little sense to me.
TO THE UNTOUCHABLES. 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 insurer’s breach of contract 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 to be investigated.
BILOXI, Miss. (MCT) — In some cases, State Farm’s top leadership prefers not to share or even keep records that offer insight into how policyholder claims are handled, according to court records.
Chairman and CEO Edward B. Rust Jr. said in sworn testimony earlier this month that no minutes are kept of quarterly meetings held by the company’s top management, the Chairman’s Council, and that policyholders have no right to information about an investigation State Farm Insurance Cos. has ordered of its relationship with Haag Engineering Co.
State Farm spokesman Phil Supple said the company doesn’t “intend to-;try this-;case in the media.”
“State Farm stands by testimony given by President and Vice Chairman Vince Trosino, who said when asked about these allegations, ‘It’s not part of our system. It’s not part of our core values. It’s not what made us the most successful property and casualty insurer, life insurer, in the country.'”
Juries in two states, Texas and Oklahoma, have found Haag provided biased reports to State Farm to minimize or deny policyholder claims. Mississippi’s attorney general currently is conducting a grand jury investigation to determine whether State Farm and other insurers denied Hurricane Katrina claims through the use of fraudulent engineering reports.
Haag denies bias, but State Farm suspended business with the company in June and ordered an independent investigation after an Oklahoma jury awarded a total of $13 million to a policyholder over tornado damages. Subsequent trials are set to determine damages for 70 other policyholders, all of whom had claims investigated by Haag.
In past court cases, judges have chastised and even fined State Farm for withholding records the company was ordered to produce. Evidence the company destroyed documents has been presented in several cases.
In the Oklahoma case, after State Farm finally turned over to the court a “claims legal research” DVD and other records, Judge Richard G. Van Dyck told company attorneys
“As I was watching these tapes I just want to say this for the record, the hair on the back of my neck did — did stand up because I was seeing things there that early on in this case I was told by (State Farm) defense counsel didn’t exist and couldn’t be produced. So I’m not real happy with that and I want to remind all counsel that their ethical responsibilities as attorneys outweigh the wishes of their clients.”
Gary T. Fye, an expert in the analysis of disputed insurance claims who lives in Nevada, often testifies in insurance cases. Fye, who said he has testified on behalf of policyholders and insurance companies, has provided the courts information on State Farm’s history of destroying and withholding records.
In 1998, Fye wrote in a Florida case
“I have been witnessing document destruction, concealment, and obstruction of discovery by State Farm for many years in connection with my review of internal claim practices documents of the insurer. I have accumulated certain Exhibits which show the company’s goals and objectives for document handling by its employees. The documents show close to 28 years of intentional destruction, concealment and distortion of claim practices records.”
In some cases, company executives did not keep records.
Jeff Marr, the attorney suing State Farm in Oklahoma, took sworn testimony Sept. 6 from Rust. Topics included Rust’s Chairman’s Council, made up of top State Farm executives. The group, which includes the company’s general counsel, meets quarterly.
Marr was fishing for records of those meetings that he could subpoena for his lawsuit.
“Certainly,” Marr asked Rust, “you keep records of the quarterly meetings where the entire Chairman’s Council is present?”
“We have an agenda,” Rust said, “but minutes in that, no.”
“Why not?” Marr asked.
Rust replied, “Never felt a need to.”
Marr later asked, “Are there any written agendas that are available should I choose to request them in the lawsuit?”
“I’m not sure what might be available,” Rust said.
Rust also said policyholders, who essentially own the private mutual company, are not entitled to know what the Chairman’s Council discusses or decides about litigation against State Farm, citing attorney-client privilege.
Marr questioned why the company would withhold information from policyholders, who own State Farm.
“Well, again,” said Rust (who has a law degree), “I’m not an expert in the area, but I think as you find — even if I’m a shareholder in a publicly traded company, there are things that are not — you know, I do not have access to.”
Marr later asked if policyholders have a right to see documents from State Farm’s investigation of Haag.
“No,” Rust said.
“Why not?” Marr asked. “Is it privileged?”
Rust said, “I believe so
Subject Posted By Posted On
ED RUST JR TOJail with Alberto R. Gonzales criminal investigation Jan 12, 2009, 7:11 pm
WAKE UP TO THE REAL WORLD. THAT’S THE ONLY WAY TO SAY IT. THIS CASE WILL KEEP YOU ON THE PATH IF YOU WILL WAKE UP. IT’S UP TO YOU. THE CASE IS BEFORE YOU. WILL YOU LOOK AWAY OR WILL YOU SAY NO MORE TAKING ADVANTAGE. WE THE PEOPLE WILL NOT LOOK AWAY. NOT NOW, NOT EVER. THANK YOU, ANITA LEE, FOR YOUR COURAGE. THANK GOD SOMEONE DOES THE REAL REPORTING. NOT TOO MANY LEFT, SO ENJOY THE TRUTH OF THIS STORY THAT WAS NOT TO BE IN THE MEDIA. THE TRUTH WILL SET YOU FREE.
http://www.youtube.com/watch?v=9PMwTwY7SUs what will happen when an actual storm occurs and there are actual claims?
YOU know what will happen people will not be paid. DID YOU FORGET ABOUT STATE FARM? THEY CAN DO ANYTHING TO PEOPLE AND SEEM TO BE OKAY WITH IT AND THAN THEY CAN SEAL UP COURT RECORDS HOW NICE FOR THEM. THEY CAN PUT THIS BS ON YOU TUBE BUT PEOPLE HAVE OUT SMARTED THEM WITH THE TRUTH. IF YOU HAVE STATE FARM YOU WILL NOT BE HELPED AND IF YOU THINK YOU WILL THINK AGAIN WE SAY GO THEW YOUR MONEY AWAY BEFORE YOU GIVE IT TO STATE FARM INSURANCE.
Florida case
“I have been witnessing document destruction, concealment, and obstruction of discovery by State Farm for many years in connection with my review of internal claim practices documents of the insurer. I have accumulated certain Exhibits which show the company’s goals and objectives for document handling by its employees. The documents show close to 28 years of intentional destruction, concealment and distortion of claim practices records.”
In some cases, company executives did not keep records.
Jeff Marr, the attorney suing State Farm in Oklahoma, took sworn testimony Sept. 6 from Rust. Topics included Rust’s Chairman’s Council, made up of top State Farm executives. The group, which includes the company’s general counsel, meets quarterly.
Marr was fishing for records of those meetings that he could subpoena for his lawsuit.
“Certainly,” Marr asked Rust, “you keep records of the quarterly meetings where the entire Chairman’s Council is present?”
“We have an agenda,” Rust said, “but minutes in that, no.”
“Why not?” Marr asked.
Rust replied, “Never felt a need to.”
Marr later asked, “Are there any written agendas that are available should I choose to request them in the lawsuit?”
“I’m not sure what might be available,” Rust said.
Rust also said policyholders, who essentially own the private mutual company, are not entitled to know what the Chairman’s Council discusses or decides about litigation against State Farm, citing attorney-client privilege.
Marr questioned why the company would withhold information from policyholders, who own State Farm.
“Well, again,” said Rust (who has a law degree), “I’m not an expert in the area, but I think as you find — even if I’m a shareholder in a publicly traded company, there are things that are not — you know, I do not have access to.”
Marr later asked if policyholders have a right to see documents from State Farm’s investigation of Haag.
“No,” Rust said.
“Why not?” Marr asked. “Is it privileged?”
Rust said, “I believe so
Subject Posted By Posted On
ED RUST JR TOJail with Alberto R. Gonzales criminal investigation Jan 12, 2009, 7:11 pm
WAKE UP TO THE REAL WORLD. THAT’S THE ONLY WAY TO SAY IT. THIS CASE WILL KEEP YOU ON THE PATH IF YOU WILL WAKE UP. IT’S UP TO YOU. THE CASE IS BEFORE YOU. WILL YOU LOOK AWAY OR WILL YOU SAY NO MORE TAKING ADVANTAGE. WE THE PEOPLE WILL NOT LOOK AWAY. NOT NOW, NOT EVER. THANK YOU, ANITA LEE, FOR YOUR COURAGE. THANK GOD SOMEONE DOES THE REAL REPORTING. NOT TOO MANY LEFT, SO ENJOY THE TRUTH OF THIS STORY THAT WAS NOT TO BE IN THE MEDIA. THE TRUTH WILL SET YOU FREE
Let me see if I understand the situation in Florida – the largest insurance company in the world – State Farmk, a direct writer – is despised. Then, small insurance companies that just got started and are rated by Demoteck are despised. However, everybody in the middle is ignored?
Maybe Peoples Trust has it right, who needs agents?
There is no k in State Farm.
Through their thorough examination, Demotech has determined that Coral & USIC should be downgraded. Great job. I know I certainly didn’t see this coming.
About 10 days before Peoples Trust was shut down, they wrote one our clients we had insured that had a frame home, gable roof, & was classified as a PC10. Unfortunately for the client, these rating factors were correct. When the client showed us the Peoples Trust dec page, it was rated masonary, hip, & PC3. They have no idea what they’re doing and I am sure their reinsurance carriers now probably know it.
Peoples is paying claims and is solvent.
Yeah sure, they are solvent until the next 25mph wind comes. Come back here the day *AFTER* a storm to see if they will be around. You, I and Demotech know they can’t pay damages from a major storm.
I guess People’s Trust COULD be solvent depending on what the definition of “solvent” would be. You know, they can handle a small storm, few lightning strikes, etc.
However we ARE certain that they don’t know much about what they’re doing, their advertising is deceptive, and ethics are questionable. Jake, you should leave there as soon as possible.
I don’t get your logic. The insurance industry suffers from a lot of misconceptions and unfavorable public opinion.
How did you get to the conclusion that People’s Trust got it right???
Weren’t they just shut down by the insurance dept in Florida after only one year in operations? Didn’t the insurance dept say they were skirting Florida law by selling policies through unlicensed sales people? Didn’t the also get tagged for improper claims handling, inadequate insurance experience for their executives, and inadequate reinsurance to back up their claims?
I don’t think Pople’s Trust got anything right. They botched it in a big way.