Partially true, Steve. But that doesn’t give Safeco the license to ignore or disregard the rules, regulations, and laws that apply to them. This was a massive fine, but they broke a massive amount of laws.
By the way, the definition of insurance: Insurance is Government Santioned and Approved Gambling, legal to participate in all 50 states. You are betting the insurance company that something is going to happen and they are betting you that it doesn’t. Most of the time they win.
You seem to think you are educating people and exposing something interesting. Not really. You are clearly an outsider trying to peer inside.
Former Safeco’s are right on…that was a tight military ship in crisp white shirts! Lots of mergers/growth creates disorganization, incompatible IT systems, overlapping compliance departments, etc. This is to be expected. Lib will get it corrected.
Reverend…..I assume you think everyone should go without insurance, and then just call upon the government when they suffer a loss? The government is your answer I assume? I’ve been in PC Claims over 20 years…never met a CPCU or CLU or an RPA or a whatever that third set of initials you claim…that didn’t boast those initials, despite the fact that it’s meaningless from the standpoint of knowing how to fact gather, evaluate coverage, analyze liability and successfully negotiate a case. Too many initials equals total lack of credibility!
Safeco wasnt fined until LIBERTY MUTUAL took over – doesnt that tell you that LIBERTY MUTUAL is not practicing under the law? Big surprise. They are too big now to worry about such small matters. Let them pay the SMALL fine and continue doing business the same as usual. Hopefully the other states will also audit and find the same faults.
Additionally, numerous underwriting and rating errors resulting in under- and over-charging premiums and incorrect coverage amounts were found across all companies which contributed to the significant fine.
The errors were primarily related to commercial products
.premiums and incorrect coverage amounts were found across all companies which contributed to the significant fine OKAY WHO GETS ALL THAT MONEY AND WHY WILL THE LAWS NOT STOP THIS. OR DID I JUST ANWER MY OWN ????????????
Connecticut Fines Safeco $434K over Numerous Violations. 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. When there’s a disaster, the companies homeowners count on to protect them from financial ruin routinely pay less than what policies promise. Insurers often pay 30-60 percent of the cost of rebuilding a damaged home–even when carriers assure homeowners they’re fully covered, thousands of complaints with state insurance departments and civil court cases show.
Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared–even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history. Property- casualty insurers, which cover damage to homes and cars, reported their highest- ever profit of $73 billion last year, up 49 percent from $49 billion in 2005, according to Highline Data LLC, a Cambridge, Massachusetts-based firm that compiles insurance industry data.
The 60 million U.S. homeowners who pay more than $50 billion a year in insurance premiums are often disappointed when they discover insurers won’t pay the full cost of rebuilding their damaged or destroyed homes. Property insurers systematically deny and reduce their policyholders’ claims, according to court records in California, Florida, Illinois, Mississippi, New Hampshire and Tennessee. The insurance companies routinely refuse to pay market prices for homes and replacement contents, they use computer programs to cut payouts, they change policy coverage with no clear explanation, they ignore or alter engineering reports, and they sometimes
CITIZEN,S ARREST.CITIZEN,S ARREST.
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.
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Maybe this is how an underfunded DOI goes about funding itself. You rarely see fines like this in any other state.
Partially true, Steve. But that doesn’t give Safeco the license to ignore or disregard the rules, regulations, and laws that apply to them. This was a massive fine, but they broke a massive amount of laws.
By the way, the definition of insurance: Insurance is Government Santioned and Approved Gambling, legal to participate in all 50 states. You are betting the insurance company that something is going to happen and they are betting you that it doesn’t. Most of the time they win.
You seem to think you are educating people and exposing something interesting. Not really. You are clearly an outsider trying to peer inside.
Former Safeco’s are right on…that was a tight military ship in crisp white shirts! Lots of mergers/growth creates disorganization, incompatible IT systems, overlapping compliance departments, etc. This is to be expected. Lib will get it corrected.
Reverend…..I assume you think everyone should go without insurance, and then just call upon the government when they suffer a loss? The government is your answer I assume? I’ve been in PC Claims over 20 years…never met a CPCU or CLU or an RPA or a whatever that third set of initials you claim…that didn’t boast those initials, despite the fact that it’s meaningless from the standpoint of knowing how to fact gather, evaluate coverage, analyze liability and successfully negotiate a case. Too many initials equals total lack of credibility!
Safeco wasnt fined until LIBERTY MUTUAL took over – doesnt that tell you that LIBERTY MUTUAL is not practicing under the law? Big surprise. They are too big now to worry about such small matters. Let them pay the SMALL fine and continue doing business the same as usual. Hopefully the other states will also audit and find the same faults.
CAN YOU REALY BE REAL?an outsider trying to peer inside.
YOU RIGHT I PEER INSIDE AND I REALLY HATE WHAT IT LOOKS LIKE.
. $434,000 WE GET THIS MONEY?????
Additionally, numerous underwriting and rating errors resulting in under- and over-charging premiums and incorrect coverage amounts were found across all companies which contributed to the significant fine.
The errors were primarily related to commercial products
.premiums and incorrect coverage amounts were found across all companies which contributed to the significant fine OKAY WHO GETS ALL THAT MONEY AND WHY WILL THE LAWS NOT STOP THIS. OR DID I JUST ANWER MY OWN ????????????
Connecticut Fines Safeco $434K over Numerous Violations. 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. When there’s a disaster, the companies homeowners count on to protect them from financial ruin routinely pay less than what policies promise. Insurers often pay 30-60 percent of the cost of rebuilding a damaged home–even when carriers assure homeowners they’re fully covered, thousands of complaints with state insurance departments and civil court cases show.
Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared–even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history. Property- casualty insurers, which cover damage to homes and cars, reported their highest- ever profit of $73 billion last year, up 49 percent from $49 billion in 2005, according to Highline Data LLC, a Cambridge, Massachusetts-based firm that compiles insurance industry data.
The 60 million U.S. homeowners who pay more than $50 billion a year in insurance premiums are often disappointed when they discover insurers won’t pay the full cost of rebuilding their damaged or destroyed homes. Property insurers systematically deny and reduce their policyholders’ claims, according to court records in California, Florida, Illinois, Mississippi, New Hampshire and Tennessee. The insurance companies routinely refuse to pay market prices for homes and replacement contents, they use computer programs to cut payouts, they change policy coverage with no clear explanation, they ignore or alter engineering reports, and they sometimes
CITIZEN,S ARREST.CITIZEN,S ARREST.
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.