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Tricks of the Trade

By Eddie Farah

At Farah and Farah, we’ve seen just about every excuse to avoid paying an insurance claim. Every day the big insurance companies do a cost analysis and find creative ways NOT to pay, while they continue to collect premiums.

It’s called profit, and for the insurance industry that comes in at about $30 billion a year with insurance CEOs among the highest paid of any industry – it doesn’t hurt to find out the source of all of that profit.

That's what the American Association for Justice (AAJ), an association of trial attorneys, did with its latest report, “Tricks of the Trade”, that exposes the tactics used inside the industry. It rang true for us at Farah and Farah.

Take auto insurance. The “Tricks” report cites the example of a 60-year-old woman who had her Farmer’s claim denied because the other driver, who caused the accident, was acting in a moment of “road rage”. Creative excuses they are.

Then there is the woman who fell behind on her bills when her daughter was murdered, only to have her auto insurance premium rise from $437 to $3,000 a year.

Insurers have, from time to time, decided to stop paying while someone is in treatment for a condition. It happened to Patsy Bates.

The California hairdresser was in the middle of chemotherapy when Health Net decided she shouldn’t have coverage anymore. They said she falsified her application. But Bates didn’t even fill out her application; a salesman did while the hair stylist worked in her shop.

Bates had to stop chemotherapy. Eventually she found a charity to help her pay for it and sued. She won more than $9 million last February.

AAJ researchers studied thousands of claims and news reports spanning a decade across the country to compile the report.

The “Tricks of the Trade” report reminds us to forget the “Good Neighbor” and being in the “Right Hands.”

What You Can Do

Consumers need to know what they are buying and become very familiar with their coverage. Absolutely make sure all information on an application is correct. You should probably seek out an experienced law firm to stop the nonsense that you will hear from Big Insurance.

Many of our staff used to work inside the insurance industry and understand not only the ins and outs, but know the personnel who are making low-ball offers. Our staff can quickly cut to the chase and find out what the industry is willing to pay for a claim to determine whether it will be acceptable, or whether we have to move forward with litigation.

It saves time and frustration and keeps you out of the pages of the latest “Tricks” of the trade. #

Originally posted at InjuryBoard by Eddie Farah

Full post as published by Jacksonville Personal Injury Lawyer on November 17, 2008 (boomark / email).