Personal Injury Law

Deny, Delay, Defend - How Insurance Companies handle claims

By Brian F. LaBovick, Esq.

Have you paid your Insurance premium lately?  If so, your premiums are helping the Insurance Industry account for over $1 trillion in annual premiums and amass over $3.8 trillion in assets, which happens to be more than the GDPs of all but two countries in the world, the United States and Japan. Despite this overwhelming success, the Insurance still try and do anything to avoid paying claims for their clients.

The consumer rights organization, American Association of Justice, released the comprehensive report, The Ten Worst Insurance Companies in America: How They Raise Premiums, Deny Claims, and Refuse Insurance to Those Who Need It Most." This report highlights 10 of the worst insurance companies for consumers based criteria such as, SEC and FBI records, testimony from former insurance agents and adjusters, court documents and more. 

The report ends with making a call for "Pro-Consumer Insurance Reforms" and making a suggestion for the following three points:

1. Require Insurers to Work in Good Faith

2. Require Prior Approval of Rate Increases 

3. Establish an Insurance Consumer Advocate

The remainder of the top 10 list of worst insurance companies for consumers is rounded out by the following:

1. UNUM, - Disability Insurance, Life insurance, supplemental and accident insurance
2. AIG,  - Auto insurance, life insurance, accident and health insurance,  property and casualty
3. State Farm, - Auto, life, health, home owners insurance and health insurance
4. Conseco, - Health Insurance, Life Insurance and Annuities
5. WellPoint, - Health benefits Company
6. Farmers Insurance  - Auto, Life and Homeowners Insurance
7. UnitedHealth, - Health care Insurance
8. Torchmark, - Holding Company offering life and supplemental health insurance
9. Liberty Mutual - Auto, Life, Homeowners and Commercial Insurance.

Over the past 16 years, I have handled thousands of Personal Injury cases against several of the companies on this list and a host of others.  I can attest firsthand that some companies are better than others at handling claims for their Insured and helping the needs of the injured.

I find it no surprise that Allstate made the top of the list, nor am I not surprised by the findings of the report: The Ten Worst Insurance Companies in America". I do find it strange however, that the insurance companies are so quick to harm and work against the interest of their own insured clients.

A few comments from bloggers around the country on this AAJ report include:

Randy David, blogger for Gotcha Covered, wrote the post Is Allstate the Worst Insurer in America? He added to the discussion that "the designation is not surprising, given the ongoing war between the insurer and trial lawyers over auto insurance accident claims." 

David Gottlieb, blogger for No Fault Paradise, wrote the post, Top Ten Insurance worst Insurance Companies for Consumers.  He has some pretty interesting comments on his blog regarding the post.  Great discussions on the subject of the insurance industry and how premiums are increasing at an alarming rate faster than the incurred losses for the Insurance carriers.

John Day, blogger for Day on Torts, wrote the post, Ten Worst Insurance Companies in America and listed the top 10 Insurance companies that were in the AAJ report.

I look forward to see how the Insurance Companies and the public respond to this AAJ report on their industry that outlines how consistently they put profits over their policyholders.

 After reading the AAJ report, I would love to hear from consumers on how they feel their insurance company is treating them.  Has the report made you think differently about your provider?

I welcome comments...

Full post as published by LaBovick Injury Law Blog on July 09, 2008 (boomark / email).