Farmers Insurance Fined $2 Million; Refunds $1.4 Million

September 7, 2007

  • September 7, 2007 at 7:19 am
    Mark says:
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    I’m an agent in the L.A. area, and yes in most areas we are pretty competitive now. Hasn’t always been the case. Farmers has come a long way since I started about 15 years ago, technology-wise, product-wise, training-wise, claims-wise and marketing-wise. They’ve made some good acquisitions (Foremost, Bristol), and they have some good management in place. Zurich has helped. There are still some ‘issues’ (especially billing), but they are making an effort to be a dominating force in the industry. I know that one can find negatives about every company, for some reason Farmers seems to be the whipping boy for many who read these posts.

  • September 7, 2007 at 7:31 am
    steve says:
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    quit yelling you retard.

  • September 7, 2007 at 8:40 am
    Octavio says:
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    Funny…I have now seen 3 Farmers agents say that all companies have the same problems and that they are the poor whipping boy. Really! I represent The Hartford, Safeco and Travelers and you can not find nearly as many negative stories with them combined as Farmers has had in the last few days. Give it a rest. Farmers sux and you know it. It is easy to be hired by them and bum agents end up there. The quality agents have solid books of business with numerous companies and not just one. Independents are kicking your Farmers asses and you still dont see the light. Wake up and BAIL fool

  • September 7, 2007 at 8:59 am
    poor underwriting says:
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    As on IA, I represent Safeco, Travelers, Hartford, Allstate and several other preferred carriers and when it comes to underwriting, I think Farmers is the worst. Issuing homeowners policy with underinsured limit on dwelling, issuing auto policy without licensed young drivers to lower the premium is common practice to them. I’ve heard the Farmers agents convince insured not to add their young driver because the company will cover the losses anyway and they’re doing this to stay in the competitive market. Poor agents

  • September 7, 2007 at 8:59 am
    please... says:
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    Octovio, get off your high horse! There are great agents at Farmers, State Farm, Allstate, etc… There are also great “independents” but there are also some crappy agents out there no matter if they are with a name brand or an independant. The insurance game isn’t rocket science and I’m sure anybody with a pulse and some sales ability can get appointed with any company out there. There are many unethical independent agents who only care about that broker fee and never see there customer again but there is not specific company to tie the independent with… that’s why you never hear all the bad stuff.
    We all do the same thing; some do a good job and others don’t… I just don’t see the point of continually trashing our own profession (no matter what company we are with) as the public perception of insurance agents isn’t that great to begin with.
    Octovio, you just seem to have a bad attitude about it all… keep making your money as an independent and let us captive agents make our money and take care of our clients!

  • September 7, 2007 at 9:11 am
    Mark says:
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    I agree wholeheartedly with the last poster. There ARE good and bad indies and captives. I wouldn’t judge all independents by Octavio’s post- I’m sure that there are independents with some class. There have been liberties taken by Farmers agents, but underwriting is much tighter now and it is much more difficult to bend the rules (although it still happens). Bottom line, Farmers works for me, as I’ve been increasing my book every year. I’m sure much of that has to do with relationships that I’ve formed with my clients and they would go with me if I became an independent. I happen to like the direction that Farmers is headed in, and I think market share will bear that out in the coming years.

  • September 7, 2007 at 9:19 am
    Octavio says:
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    I think I am most upset about the fact that the company you write for along with Statefarm and Allstate continually get headlines for actions that create negative public opinion. Katrina claims issues, Allstate pulling out of California HO-3 market and continual issues with the DOI. Its no wonder that many customers dont like out industry. I get really upset and rightfully so when your employer gets headlines for stupid actions like today’s headlines and the Ray Wersching case just to name a couple of situations. I chose who I represent and if the company has a bad rep, I dont take the appointment regardless of their rate levels. I too am building a book and the last thing I want are phone calls questioning my company’s honesty. I would be embarrassed to work for Farmers. Sorry, but that is my opinion and I am sure it is that of a few more.

  • September 7, 2007 at 9:19 am
    OakRaidFan says:
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    Ex-FIG Agent (over 11 yrs). Gone for @ 10
    plus yrs. Glad to see them finally being taken to task. When Prop. 103 came out & they were told to change Auto territories,
    all they did was to RENAME them, from territories to CCFs (Claims Cost Factors).
    They didn’t change any boundaries or rates
    however! Typical, arrogant Farmers. They
    deserve what they get, reap what they sow.

  • September 7, 2007 at 9:31 am
    Mark says:
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    We all know that bad news gets top billing (like the contingent commission scandal). What you don’t see are things like the millions of dollars that Farmers raises as a company for March of Dimes and the response by Farmers to California wildfires and midwest tornadoes. Farmers doesn’t write insurance in Louisiana, so I can’t comment about Katrina. I suppose you are telling me that Hartford, Travelers, et al had NO PROBLEMS there. Anyway, it’s pointless to argue about it because the market will take care of itself. If Farmers stinks, people will leave- there are alot of insurance companies around. You should be happy when stuff like this happens, since it should drive customers away from me and to you. Even though in this particular case, Farmers discovered their error and fixed it before the DOI got involved.

  • September 7, 2007 at 10:08 am
    PUBLIC OPINION says:
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    No I dont take any pride in seeing your company get bad press. I have a great deal of pride in the industry and I am quite surprised to see how many former agents of Farmers kick the crap out of their former employer. I don’t see much of that from my colleagues who have sold their agencies for good money and happily retired. They praise their affiliation with Travelers, Hartford and Allied. Maybe its because they are smarter and dont get caught? So what does that say about the management of Farmers? Not very much. In any case, I would like for there to be NO news about your employer…just do your business and follow the freakin rules of the DOI…how hard can that be?

    RAIDER FAN SURE SUMS IT UP



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