In my state, its the law that insurers make available the use of replacement parts other than OEM. In other words, if State Farm or any other insurer were to only offer OEM they would be violating state law. Why? Because lawmakers here believe that the availability of non-OEM parts helps hold down the cost of insurance for consumers. Secondly, for about 15 years I referred my auto policyholders to one shop in my neighborhood, since the rest of the shops were inferior. Oh, I referred a few other good shops too but they happened to be a little further away. I liked to refer Quality auto because they did the best work. Quality auto, by the way, would never even order in a non-OEM part.
The owner told me he had too many bad experiences with non-OEM parts, and wouldnt mess with it. In 15 years State Farm didnt fuss him at all about it. Not once. As far as medical utilization boards, State Farm is certainly not the only company to try to use such a tool to keep down claims costs, and therefore premiums. I appreciate that you have an insight to the claims side of things. As a guy who gives rate quotes to potential policyholders, let me share on thing. Nobody calls for a rate quote and asks about either OEM parts or medical utilization boards. They all want to know who is the cheapest. State Farm didnt invent that aspect of humanity – wanting the most for the least. Blame those who dumbed down our business and in doing so conditioned policyholders that price is the only relevant criteria when it comes to who they trust.
The law as you state it seems rather silly, insurance companies are required to offer cheaper parts to their clients. “Mr Insured, would you like a genuine Ford part or a cheaper non-OEM part?” “Why I would like the cheaper part to save my insurance company money. Sure am glad I can do my part to hold down rates!”
If you don’t mind me asking, what state is that? I gotta see that law.
Now if the law REQUIRES the use of non-OEM, that would just HAVE to be IL. LOL
That’s a pretty generous description of the insurance industry’s involvement in CAPA. CAPA is a child of SF and Allstate, to call them independent is more than just a stretch. Also, keep in mind too that I.I.I. is the PR arm of the industry. Much akin to a political campaign’s spokesperson.
Look, I am a believer in this industry, but SF has real ethical issues in management.
Finally, did iii tell you that the deciding vote cast in Avery was cast by a judge to whom SF was his biggest campaign contributor. $9.3M spent by a candidate on a judicial race in Illinois, more than double the previous record! It only cost them $1.3M to buy that judge and he saved them half-a-billion. Ever wonder why on earth mega-companies put senators’ and governers’ wives on the boards of directors when they have ZERO experience in the industry? Those board slots are nice little bribes…. errr, side jobs.
I challenge you to dig out your dusty auto
insurance policy and try to make heads or tails out of it. I have spoken to
a number of legal professionals who have worked for the insurance companies
and they can’t even explain them. Who protects us from fraud by insurance
companies? I was originally told that the role of the Office of the
Insurance Commissioner was to serve as a consumer protection agency, but I
have found that they’ve become nothing more that the type of political
bureaucracy that they were formed to protect us against. The National
Association of Insurance Agents certainly did not want to hear from me!
President George W. Bush singe the Sarbanes-Oxley Act on July 30, 2002.
This law was aimed at prosecuting fraud in Corporations, but the problem is
lack of enforcement. Who is at your back door? A well paid insurance
lobbyist? There can be no effective control of corporations while they remain
politically active through lobbyists that distribute their cash. I can promise you this. I will not give up.
Safeguard us from betrayal! Money, the donor with rank. A protected
agency with no honorable dispute. Teddy Roosevelt was the first to coin the phrase
“muckrakers”. I just want to know who really is working for the people.
Are our senators and representatives
about money.
just a consumer working to get our voices .. Do you all hear??
I insure multiple attorneys, and explain the auto policy to them when they require. If you need someone to explain it to you, get an agent. Not an attorney.
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.”
(c) 2006, The Sun Herald (Biloxi, Miss.).
Distributed by McClatchy-Tribune Information Services.
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In my state, its the law that insurers make available the use of replacement parts other than OEM. In other words, if State Farm or any other insurer were to only offer OEM they would be violating state law. Why? Because lawmakers here believe that the availability of non-OEM parts helps hold down the cost of insurance for consumers. Secondly, for about 15 years I referred my auto policyholders to one shop in my neighborhood, since the rest of the shops were inferior. Oh, I referred a few other good shops too but they happened to be a little further away. I liked to refer Quality auto because they did the best work. Quality auto, by the way, would never even order in a non-OEM part.
The owner told me he had too many bad experiences with non-OEM parts, and wouldnt mess with it. In 15 years State Farm didnt fuss him at all about it. Not once. As far as medical utilization boards, State Farm is certainly not the only company to try to use such a tool to keep down claims costs, and therefore premiums. I appreciate that you have an insight to the claims side of things. As a guy who gives rate quotes to potential policyholders, let me share on thing. Nobody calls for a rate quote and asks about either OEM parts or medical utilization boards. They all want to know who is the cheapest. State Farm didnt invent that aspect of humanity – wanting the most for the least. Blame those who dumbed down our business and in doing so conditioned policyholders that price is the only relevant criteria when it comes to who they trust.
The law as you state it seems rather silly, insurance companies are required to offer cheaper parts to their clients. “Mr Insured, would you like a genuine Ford part or a cheaper non-OEM part?” “Why I would like the cheaper part to save my insurance company money. Sure am glad I can do my part to hold down rates!”
If you don’t mind me asking, what state is that? I gotta see that law.
Now if the law REQUIRES the use of non-OEM, that would just HAVE to be IL. LOL
That’s a pretty generous description of the insurance industry’s involvement in CAPA. CAPA is a child of SF and Allstate, to call them independent is more than just a stretch. Also, keep in mind too that I.I.I. is the PR arm of the industry. Much akin to a political campaign’s spokesperson.
Look, I am a believer in this industry, but SF has real ethical issues in management.
Finally, did iii tell you that the deciding vote cast in Avery was cast by a judge to whom SF was his biggest campaign contributor. $9.3M spent by a candidate on a judicial race in Illinois, more than double the previous record! It only cost them $1.3M to buy that judge and he saved them half-a-billion. Ever wonder why on earth mega-companies put senators’ and governers’ wives on the boards of directors when they have ZERO experience in the industry? Those board slots are nice little bribes…. errr, side jobs.
I challenge you to dig out your dusty auto
insurance policy and try to make heads or tails out of it. I have spoken to
a number of legal professionals who have worked for the insurance companies
and they can’t even explain them. Who protects us from fraud by insurance
companies? I was originally told that the role of the Office of the
Insurance Commissioner was to serve as a consumer protection agency, but I
have found that they’ve become nothing more that the type of political
bureaucracy that they were formed to protect us against. The National
Association of Insurance Agents certainly did not want to hear from me!
President George W. Bush singe the Sarbanes-Oxley Act on July 30, 2002.
This law was aimed at prosecuting fraud in Corporations, but the problem is
lack of enforcement. Who is at your back door? A well paid insurance
lobbyist? There can be no effective control of corporations while they remain
politically active through lobbyists that distribute their cash. I can promise you this. I will not give up.
Safeguard us from betrayal! Money, the donor with rank. A protected
agency with no honorable dispute. Teddy Roosevelt was the first to coin the phrase
“muckrakers”. I just want to know who really is working for the people.
Are our senators and representatives
about money.
just a consumer working to get our voices .. Do you all hear??
I insure multiple attorneys, and explain the auto policy to them when they require. If you need someone to explain it to you, get an agent. Not an attorney.
By Anita Lee
McClatchy Newspapers
Advertisement
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.”
(c) 2006, The Sun Herald (Biloxi, Miss.).
Distributed by McClatchy-Tribune Information Services.
E-mail this story | Print this story | Search archives | RSS
Show comments | Hide comments | Hide comments on all stories
Subscribe to the Pantagraph
Contact the Pantagraph staff
Home page | Previous page | Top
Video
More News headlines
Peoria airport gets $6.2 million FAA grant
Some concerned about Chenoa TIF district
Crime Stoppers: Man accused of selling drugs
State Farm has history of not releasing records
Daily Digest 9/23/2006
Man sentanced for involvment in SIU killing
National celebrity news
Pages from our past
Survival guide: Retiring your flag
Salvation Army looking to reopen thrift store
Woman accused of cutting out fetus
Area Calendar
University briefs
Overtime payout shows understaffing in prisons
Chicago architect helps revamp the Twin Cities
Apple ‘n pork fest provides family fun
Day of the Dozer
Race raises money for Junior Achievement
Use of flag in school lesson raises concerns
Wheelchair stolen at U High football game
Walkers step up, raise money for AHA
Train accident kills one, injures another
Woman finds 1.30-carat diamond in state park
Samaritans unwittingly help boy steal car
Man dies after being shot in head with beanbag
Most commented stories
Look at what Bush has cost the United States (158)
Obama can’t shrug off association with pastor (149)
‘March today, vote tomorrow’: Crowd rallies for workers’ rights (95)
Focus on core subjects, not homosexual forums (77)
Meth problem increases need for concealed carry (65)
Four eighth-graders arrested after BJHS assault (65)
Concern over Redbirds link to Christian group (57)
Local officials present united front against prison closing (56)
Drivers don’t slow down despite high fuel prices (51)
Sox fan allegedly pushes Cubs fan into window in uptown Normal (45)
Top 10 from the past 14 days
Browse online archives
Main archive menu page
Search stories back to 1989 (NewsBank)
Search stories 2006-Present (Pantagraph.com)
Tips for searching the archives
Order photo reprints
Recent