The next Hurricane Andrew equivalent is going to expose the fundamental flaws of good ole’ Charlie and McCarty. The Florida Insurance Guaranty Association need for cash is going to far outstrip the 4% cap on FIGA assessments. Combine that with Citizens and Cat Fund shortfalls and the rate of taxation in the state is going to skyrocket. Businesses are going to move to more tax-friendly states and the state’s economy is going to make Detroit look like Disney by comparison. I don’t wish that on them, but it is the price to be paid for choosing to chase away voluntary insurers instead of allowing the price of insurance to move up to risk-based appropriate levels.
State Farm tried to cancel their single lines homeowners along the coast, but Gov Crist stopped that, basically citing the statutes against tie-in sales. Now Nationwide is trying to dump their single line homeowners, but they have a plan to transition them over to Tower Hill (the same company that was recently downgraded by AM Best). Let’s see if that goes through…
The big insurers continue their exodus from Florida, and pretty soon all that we will have here will be the grossly underfunded Citizens and a bunch of small, new companies who are almost completely dependent on the Cat Fund. That’s not good for Florida. Read Senator Alexander’s letter in the St Pete Times today about the ugly truth of the florida property insurance market. Here’s the link: http://www.tampabay.com/opinion/columns/on-insurance-truth-ugly/1042340
Yes, because we all know how straight forward Senators are. They are always thinking of our best interest and know more about insurance than anyone else. At least Nationwide is trying to find someone else for the people they are dumping and allowing their agents to sign up with Tower Hill unlike the popular never do anything wrong poor State Farm. State Farm, the company who has done no wrong, did not contribute to the mess they are in and who everyone should feel sorry for and leave thier life savings to so they don’t lose any money in the RISK business.
Yes, and we now know how straightforward Kevin McCarty and Charlie Crist are. Between the 3 of these guys McCarty, Crist, Alexander), I’d believe Senator Alexander a lot sooner than Kevin (40 companies, $4 billion) McCarty or Charlie (just make me a Senator) Crist.
I hope this works out for Nationwide, but I wouldn’t be surprised if the dynamic duo didn’t squash this idea, like they did State Farm’s. Nationwide’s track of finding a replacement carrier may soften the blow, but Tower Hill is no Nationwide, and the state of Florida loses more of the bigger, financially strong insurers who were able to pay their claims in 2004 and 2005.
By the way, who ever said State Farm never did anything wrong and you should feel sorry for them? Sure they did something wrong – they wrote too much business and got overexposed. I don’t get your comments about leaving your life savings to them…
Nationwide’s Florida homeowner operation has a B- rating with Best. Nationwide and Tower Hill have the same Demotech rating. I’d say it’s pretty much a wash.
Mr Solvent,
Are you kidding me? Nationwide and Tower hill a wash? AM Best vs. Demotech. Come on everyone knows that you can purchase a rating from Demotech. They only have one rating which is A.
Nationwide is a multi billion dollar company and has 20 times the revenues and resources as Towerhill.
We’re not talking about Nationwide the parent company, we’re talking about Nationwide the Florida company. We’re talking about the same Nationwide that has been dumping policies for years. We’re talking about the same Nationwide who tried to adjust hurricane deductibles at the time of loss based on inflation guard on policies. I’ve done plenty of carrier research.
Another one is leaving, I’m not suprised, why does any insurance company want to put capital in Florida when they can go to other states and make a profit. When will government figure out they can not control business, regulation should keep the fraud out and ethics in but supply and demand should set the price.
The problem is that the ethics in Florida’s insurance industry is going down hill, with the AAA ads, withwhat so many of my fellow agents have put on their message boards and in ads about State Farm it’s all just sad. I’m sure this will bring on more of the same with Nationwide being put in the message. When does it end when we all write with Citizens. Everyone takes shots at each other but we all just have cardboard shields.
Soon we will be New Jersey with their auto insurance mess, companies just kept pulling out one after another. It took that for the State to finally wake up and fixed the problem they created. I hope they do it here soon.
Mr Solvent, I know you are well informed, but I have to agree with Sarah. Nationwide Florida itself has over $250 million in surplus (not to mention the reinsurance and backing of the parent company) compared to Tower Hill group with about $90 million combined. And that’s assuming that all 3 of the Tower Hill companies (Prime, Select,Preferred) are actively writing in Florida – I don’t think they are.
I don’t think it’s a wash. Tower Hill is no Nationwide.
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 especially with the advent of new claims that are surfacing from lawsuits revolving around Hurricane Katrina. A message to Mr. Rust, and any employee of the company that is acting in bad faith for its policy holders. Its time to stop no more.
State Farm has been granted backdoor rate relief, however, in the form of being allowed to discontinue some policyholder discounts. OIR has approved a State Farm filing to eliminate discounts ranging from 5 to 20 percent for having more than one policy with the company, for installing home alert systems and for not having filed a previous homeowners claim. The overall premium impact of of this decision is 28.4 percent, according to the OIR.
Subject: by State Farm for many years in connection with my review of
Posted On: May 26, 2009, 8:29 pm CDT
Posted By: me and you.
Comment:
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
After 10 years of paying Nationwide Homeowner insurance Premiums, Nationwide has determined to drop me as a customer. My home meets Miami Dade county requirementsand went through Hurricane Wilma (Cat 4)- I never file a claim. It time someone investigate Nationwide Insurance. How can they be allowed to drop customers with no individual justification. The Feds should not allow this. Where does the homeowner find support in Insurances cancellation without juatification. This is just plain wrong and Nationwide should be fined. Is not all the insurance business built on betting against the odds?
The next Hurricane Andrew equivalent is going to expose the fundamental flaws of good ole’ Charlie and McCarty. The Florida Insurance Guaranty Association need for cash is going to far outstrip the 4% cap on FIGA assessments. Combine that with Citizens and Cat Fund shortfalls and the rate of taxation in the state is going to skyrocket. Businesses are going to move to more tax-friendly states and the state’s economy is going to make Detroit look like Disney by comparison. I don’t wish that on them, but it is the price to be paid for choosing to chase away voluntary insurers instead of allowing the price of insurance to move up to risk-based appropriate levels.
State Farm tried to cancel their single lines homeowners along the coast, but Gov Crist stopped that, basically citing the statutes against tie-in sales. Now Nationwide is trying to dump their single line homeowners, but they have a plan to transition them over to Tower Hill (the same company that was recently downgraded by AM Best). Let’s see if that goes through…
The big insurers continue their exodus from Florida, and pretty soon all that we will have here will be the grossly underfunded Citizens and a bunch of small, new companies who are almost completely dependent on the Cat Fund. That’s not good for Florida. Read Senator Alexander’s letter in the St Pete Times today about the ugly truth of the florida property insurance market. Here’s the link: http://www.tampabay.com/opinion/columns/on-insurance-truth-ugly/1042340
Yes, because we all know how straight forward Senators are. They are always thinking of our best interest and know more about insurance than anyone else. At least Nationwide is trying to find someone else for the people they are dumping and allowing their agents to sign up with Tower Hill unlike the popular never do anything wrong poor State Farm. State Farm, the company who has done no wrong, did not contribute to the mess they are in and who everyone should feel sorry for and leave thier life savings to so they don’t lose any money in the RISK business.
Yes, and we now know how straightforward Kevin McCarty and Charlie Crist are. Between the 3 of these guys McCarty, Crist, Alexander), I’d believe Senator Alexander a lot sooner than Kevin (40 companies, $4 billion) McCarty or Charlie (just make me a Senator) Crist.
I hope this works out for Nationwide, but I wouldn’t be surprised if the dynamic duo didn’t squash this idea, like they did State Farm’s. Nationwide’s track of finding a replacement carrier may soften the blow, but Tower Hill is no Nationwide, and the state of Florida loses more of the bigger, financially strong insurers who were able to pay their claims in 2004 and 2005.
By the way, who ever said State Farm never did anything wrong and you should feel sorry for them? Sure they did something wrong – they wrote too much business and got overexposed. I don’t get your comments about leaving your life savings to them…
“Tower Hill is no Nationwide”
Nationwide’s Florida homeowner operation has a B- rating with Best. Nationwide and Tower Hill have the same Demotech rating. I’d say it’s pretty much a wash.
The State of Florida should allow private homeowner insurance companies to take rate increases.
This way they can financially afford to stay in the State.
Sure the end price to the consumer (myself included) will be higher but at least we will have real options and competition amongst carriers.
Mr Solvent,
Are you kidding me? Nationwide and Tower hill a wash? AM Best vs. Demotech. Come on everyone knows that you can purchase a rating from Demotech. They only have one rating which is A.
Nationwide is a multi billion dollar company and has 20 times the revenues and resources as Towerhill.
You need to do some research on your carriers.
We’re not talking about Nationwide the parent company, we’re talking about Nationwide the Florida company. We’re talking about the same Nationwide that has been dumping policies for years. We’re talking about the same Nationwide who tried to adjust hurricane deductibles at the time of loss based on inflation guard on policies. I’ve done plenty of carrier research.
Another one is leaving, I’m not suprised, why does any insurance company want to put capital in Florida when they can go to other states and make a profit. When will government figure out they can not control business, regulation should keep the fraud out and ethics in but supply and demand should set the price.
The problem is that the ethics in Florida’s insurance industry is going down hill, with the AAA ads, withwhat so many of my fellow agents have put on their message boards and in ads about State Farm it’s all just sad. I’m sure this will bring on more of the same with Nationwide being put in the message. When does it end when we all write with Citizens. Everyone takes shots at each other but we all just have cardboard shields.
Soon we will be New Jersey with their auto insurance mess, companies just kept pulling out one after another. It took that for the State to finally wake up and fixed the problem they created. I hope they do it here soon.
Mr Solvent, I know you are well informed, but I have to agree with Sarah. Nationwide Florida itself has over $250 million in surplus (not to mention the reinsurance and backing of the parent company) compared to Tower Hill group with about $90 million combined. And that’s assuming that all 3 of the Tower Hill companies (Prime, Select,Preferred) are actively writing in Florida – I don’t think they are.
I don’t think it’s a wash. Tower Hill is no Nationwide.
The most important thing for a politician is getting elected.
I thought they had left already!
What’s taking them soooo long?!
How about building up a premium/tax funded universal cat fund that works for earthquakes, storms, floods, etc., victims?
Wouldn’t that solve insurers fear of large and unsure risks, and create stable premium rates, and more expendable income for others?
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 especially with the advent of new claims that are surfacing from lawsuits revolving around Hurricane Katrina. A message to Mr. Rust, and any employee of the company that is acting in bad faith for its policy holders. Its time to stop no more.
State Farm has been granted backdoor rate relief, however, in the form of being allowed to discontinue some policyholder discounts. OIR has approved a State Farm filing to eliminate discounts ranging from 5 to 20 percent for having more than one policy with the company, for installing home alert systems and for not having filed a previous homeowners claim. The overall premium impact of of this decision is 28.4 percent, according to the OIR.
Insurance
Subject: by State Farm for many years in connection with my review of
Posted On: May 26, 2009, 8:29 pm CDT
Posted By: me and you.
Comment:
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
After 10 years of paying Nationwide Homeowner insurance Premiums, Nationwide has determined to drop me as a customer. My home meets Miami Dade county requirementsand went through Hurricane Wilma (Cat 4)- I never file a claim. It time someone investigate Nationwide Insurance. How can they be allowed to drop customers with no individual justification. The Feds should not allow this. Where does the homeowner find support in Insurances cancellation without juatification. This is just plain wrong and Nationwide should be fined. Is not all the insurance business built on betting against the odds?