Farmers Insurance Fined $2 Million; Refunds $1.4 Million

September 7, 2007

  • September 7, 2007 at 11:01 am
    Einstein says:
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    I believe it was about 8 years ago they put this program into effect and they knew then that it was splitting Zip Codes incorrectly. In simple terms, if the agent did not correct it, they would charge the highest protection class in that Zip Code. Meaning that people living within 500 feet of a fire plug, etc., would be charged rural or mountain rates. Ask any California agent, they had to manually correct every split zip code. You see that was a long time ago, and they told the agent they knew there were errors and they should correct it, so I do not believe THEM. I also know when Ray Wersching was getting special rates by Farmer’s that they were fully aware who his embezzling partner was, and they thought she was the reason for his success, so I DO NOT BELIEVE THEM.

  • September 7, 2007 at 12:08 pm
    Val 96 78 xxx says:
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    FARMERS DOES IT AGAIN! SCREWS OVER IT’S POLICYHOLDERS, CLAIMS PEOPLE AND AGENTS.
    BUT NO, YOU STILL THINK FARMERS IS JUST TERRIFIC. WHEN YOU BURY YOUR HEAD IN THE SAND YOUR BUTT IS UP IN THE AIR. DO YOU HEAR US NOW??

  • September 7, 2007 at 2:04 am
    interested says:
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    Valentin, you always have negative Farmers responses… you still with them?

  • September 7, 2007 at 2:46 am
    Bart says:
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    Farmers has manipulated the fire rating system to their own benefit in our area, rates for homes outside of the city limits have gone up over 45%. Same exposure as before, just higher rates. Needless to say, they made a lot of money in the last two years, a lot of money. Is this wrong? No. Lousy business decision? Yes. Let the market solve the problem.

  • September 7, 2007 at 4:01 am
    Buffalo Bill says:
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    This time Farmers was right and the state was wrong. The company discovered their problem, reported it, refunded on their own. Then they get fined 2M. Maybe the state will fix some pot holes.

  • September 7, 2007 at 4:09 am
    himself says:
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    Buffalo Bill is right. Shows you that most states’ DOI’s are nothing more than revenue-generators who perpetuate their own existence by such sham tactics against insurance companies and their employees. Ever participated in a State audit of your underwriting or claims department? Those people come with an agenda, knowing where most insurance companies have weak performance issues (usually so minor in nature as to not have an affect in the marketplace) yet they have the authority to fine companies for noncompliance. They’re like ticks sucking the lifeblood out of the industry.

  • September 7, 2007 at 5:51 am
    Barndogg says:
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    Are there any Farmers Agents out there that are reading this?

    How are rate in you area?

    Are you growing your book of Business?

    Are you happy with Farmer Businsess tackics?

  • September 8, 2007 at 12:58 pm
    Marty says:
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    It is all part of our diabolical long term plan to lose business. The plan is working great. We should shrink to tenth place in the next five years.

  • September 8, 2007 at 6:28 am
    Reserve Agent 50911 says:
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    My District Manager told me Farmers Insurance had no sales quotas, that I would be completely independent and have a $250,000 book of business in a few short years, if I only paid them (get it? paid them?) for my Reserve Agent training. This is now over $4,000 and the way I’m told to build my business is to ripoff other agents’s policies, because here in California, Farmers has two big problems, first they are not competitive in their rates. They are way overpriced. Secondly, the California consumer has had many years of bad press. My DM has been able to hire only two Reserve agents in two years. Farmers was sued successfully by it’s own employees for not paying overtime. Farmers lost $45 million on that one. Their own employees! Then the poor lady from Seattle who successfully sied Farmers that had to represent herself because she couldn’t afford an attorney like Farmers could. She won her case to, $450,000. The judge had no good words for FArmers. Sure, they win the Rose Parade Float contest and have a big March of Dimes racket going, but this is their PR Department working, not the poor slobs who have to work for them in customer service or claims, and the poor agents who have to steal fellow agents policies in order to “grow” a book of business. Ask any old Farmers agent what he thinks of the company. There’s a reason they are FORMER agents. They bailed out with Marty Feintein several years ago, and just in the nick of time. Farmers represents a lot of bad things for consumers in California. We see how they treat their own employees and their “independent” agents and it doesn’t take a genius to see how they’ll screw their customers. This is just another example of a company run into the ground by the greed in Los Angeles. They even recently hired someone from Progressive to kickstart sales. That job is a joke. Farmers gets bad press because it is run with just one thing in mind, get the most money out of these suckers(policyholders), pay the smallest claims amounts, hound your “independent” agents for Life Insurance sales (independent contractors have no sales goals right? Wrong!) and send gazillions of dollars to the management company in Switzerland. Farmers isn’t going to gain any ground soon. They just bought out Bristol-West, then raised the rates three times and lowered their own agents commissions. Real compassionate Farmers.

  • September 10, 2007 at 12:56 pm
    9 Month in Farmers Agent says:
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    Rates in my area have been very competitive. My book of business after 9 mos has also been very good.As far as the Farmers business tactics: I have not seen a hint of anything fraudulent or below board. My DM has been great at pointing out the do’s and dont’s of the business. How you conduct your business as a captive or an IA just like any other business will ultimately be in the hands of the individuals. If I were crooked, guess what, there are opportunities on an hourly basis to do harm, the same as opportunities to really do some good. It’s the coolest thing in the world to actually help and educate people about our industry and get paid for it too. Octavio, I’m sure you have your reasons for being a hatter, but I have not experienced anything but first rate class and dignity since I joined Farmers. No! Its certainly not perfect, but a band of thieves and terrorist extorting money from the public and each other it hasn’t been at all.



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