Friday, July 25, 2008

Paid for Farmer Insurance Homeowners but Didn't Get It

Woman has to contact news station to get refund for Farmers Insurance Homeowners policy she didn't get but paid for.

FAYETTEVILLE (WTVD) -- A Fayetteville woman made a startling discovery about her homeowners insurance.

Dawn Murphy purchased her home in May 2007. Along with the house purchase, she paid Farmers Insurance $562 for her first year of protection.

Dawn didn't think about her policy again until a year later when her mortgage company called about the renewal information. From calling up Farmers Insurance, she learned that she did not have any protection on her home for the past year. Dawn tells Troubleshooter Diane Wilson, "They looked by my social security number, my birth date, my name, everything. And he said he couldn't find it."

Timothy Moore, the Farmers agent who sold Dawn the policy, confirmed that despite paying in full for the policy, Dawn didn't have it. She says, "What if something had happened, God forbid, a house fire, an electrical fire, anything? It was scary. I'm thankful nothing did happen."

Dawn wanted a full refund of the $562 she paid Farmers. She says she called and e-mailed several reps but never got it so she contacted Troubleshooter Diane Wilson. Three days after contacting the Troubleshooter, Farmers Insurance agent Timothy Moore hand delivered her refund.

She tells Troubleshooter Diane Wilson, "I'm so glad you got involved. Thank you very much." Dawn's Farmers insurance agent never gave Troubleshooter Diane Wilson a reason Dawn didn't have a policy, despite paying for it, but did get her a full refund.
henever you sign up for a new insurance policy, after getting all the paperwork it's always good to just call your insurance company to confirm your coverage.


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Thursday, July 24, 2008

Farmers Insurance Senior Liability Representative Tells All

General Information

What was your job title at Farmers Insurance? Senior Liability Rep
How long did you work at Farmers Insurance? Just under 5 yrs
When did you leave Farmers Insurance? Still employed


Did you use Colossus to calculate (low-ball) claims? yes

Is there software programs used to calculate claims for Life, Auto, Homeowners, if so what are they called? Explain how each is used to low-ball a claim. Now using CC, Colossus was done away with. CC utilizes zip codes and we enter medicals into system based on severity of injury and arrive at general damages amounts. We are told to state that this is a only a “tool” and that we use experience and judgement to evaluate claims. This is a lie.

What other software programs are used for claims? CRN

Is there pressure to low-ball and deny claims? Explain. Absolutely. We are told to reduce medical bills if we think too many procedures were used or costs are not what we feel is appropriate. We are looking for ways to not pay the claims.

What “incentives” or “contests” were there for low-balling and/or denying a claim? Explain. They are not giving any incentives for this. It is a job requirement.

If you have low-balled, I am sure you may feel bad about it. Describe the top two cases (or more if you like) you feel bad about low-balling? Explain the scenario and why you feel bad about it. Specialist provide prognosis and we cut it down based on the persons health and years we expect them to live. Lower socioeconomic, elderly persons are given less. They aren't really paying us anything anymore, these are job duties.

For those who are trying to get a fair settlement from Farmers what advice would you give them to deal with Farmers Insurance Claims (Break down into categories of auto, body, home, and life if necessary)?
Auto and home injury claims get a lawyer. Farmers wants documentation for medical proof well beyond what is reasonable and then we question what “specialists” provide for records.

What is the top three things every claimant should know?
All injuries: the adjusters have to meet with you or they are penalized for not doing so. You must sign a medical authorization so that we can get your records. We are going to question any prior injuries. You need to clearly detail all “hobbies, lifestyle, wages that you feel are compromised by the injury” We will get your history with or without your written permission. If you retain an attorney. He'll provide it for us.


What other questions do you recommend we add to this questionnaire? Feel free to add them below and answer them.

Adjusters are being pushed to settle claims for next to nothing, to diminish injuries and treatments received. We are being forced to document files to the point of severely delaying the time to settle a claim. We aren't given any authority to settle claims. Management is in EVERYTHING.

If there is anything else you want to share that others should know about Farmers Insurance? They truly do not care for their employees and that means even less concern for the consumer.

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Monday, July 21, 2008

Farmers Insurance Adjuster Jeff Dunavant Hits Bicyclist Then Leaves

St. Paul girl hit on bike by insurance adjuster

A girl turned into a detective after she was hit by a car while riding her bicycle on Lexington Avenue in Shoreview.

"I was so scared I was underneath a car. I was pounding on the front of the car trying to make it stop," said 13-year-old Sydney Carlson.

Sydney said the driver stopped, got out, and even apologized to her.

"But he didn't really help me. He didn't offer to call 911 or anything and he didn't help me up," she said.

She said she turned around to call her father, but then the driver took off. Fortunately, Sydney remembered the Farmer’s Insurance logo on the side of the car.

"To leave and you're with an insurance company? It made me kind of like what the heck is wrong…I was very upset," said Sydney’s father Joel Carlson.

Joel contacted Farmer’s Insurance, who discovered the driver was insurance adjuster Jeff Dunavant.

A Farmer’s Insurance spokesperson told 5 EYEWITNESS NEWS, "the company is thoroughly investigating the accident and will take whatever action they deem necessary."

"They are people that should know about exchanging information and that never happened," Joel said.

Sydney was wearing a helmet at the time of the accident and only suffered scrapes and bruises.

The Ramsey County Sheriff’s Department is investigating.

Story and Video at

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Thursday, July 10, 2008

Farmers Insurance not a 'Good' or a 'Service'???!! (Argue Anything for Profit)

Court to Decide Whether Insurance is a 'Service'

SANTA MONICA, Calif., July 9 /PRNewswire-USNewswire/ -- Consumer Watchdog today urged the California Supreme Court to subject insurance companies to one of the state's main consumer protection laws.

In a "friend of the court" brief, Consumer Watchdog urged the court to overturn a ruling last summer by the Court of Appeal in Los Angeles. That court decided that insurance companies that break the law cannot be sued under the Consumers Legal Remedies Act (CLRA) because, the court said, insurance is neither a "good" nor a "service" and thus the CLRA does not apply.

Consumer Watchdog urged the Supreme Court to ignore the lower court's view that the best public policy would be to allow only the Insurance Commissioner to hear complaints against unlawful or unfair practices by insurance companies. The non-profit advocacy group said that the court's public policy beliefs did not comport with experience under Proposition 103, which requires that insurers be subject to lawsuits when they break the law, and were irrelevant in any case.

"Insurance is a big part of the $115 billion financial services marketplace in California," said Harvey Rosenfield, author of Proposition 103, who wrote the brief filed by Consumer Watchdog today. "There is no basis in the law to give the insurance industry a special exemption from the CLRA's protections, and this is especially true since the voters directed that the insurance industry be subject to all the laws that are applicable to other businesses."

Consumer Sued Farmers for Fraud

The case was brought by a consumer who bought a life insurance policy from Farmers Insurance after being told that paying the premium would keep the policy in force indefinitely. In fact, that was not true.

The consumer sued Farmers, charging a violation of the Consumers Legal Remedies Act (CLRA), which bars fraud and other unlawful conduct in a "transaction intended to result or which did result in the sale or lease of goods or services to any consumer." Farmers argued that insurance was neither a "good" nor a "service," and thus the law did not apply. A decision by Division 3 of the Second District Court of Appeal, authored by Justice Walter Croskey, agreed with the insurance company.

"Consumers are increasingly beleaguered by misleading advertising, fraud and other trickery in the marketplace," said Rosenfield. "If insurance is not a 'good' or a 'service,' what is it? The decision places insurance companies beyond the law. Moreover, this is the second time in the last two years that this same court panel has issued a decision incorrectly barring the right of a consumer to sue an insurance company. This court has refused to respect the laws passed by the voters," Rosenfield concluded.

In the previous case, Consumer Watchdog had sued Safeco Insurance Co. for violation of a provision of insurance reform Proposition 103 - section 1861.02(a) of the state insurance code -- that bars insurance companies from overcharging motorists who apply for insurance for the first time. Farmers was also sued for the same violation. Proposition 103, approved by voters in 1988, authorizes "any person" to "enforce" its requirements. Despite this clear language, in a March, 2006, ruling, Justice Croskey agreed with Safeco and Farmers' argument that consumers could not go to court to "enforce" the statute against insurance companies when they violate Proposition 103. Consumer Watchdog continues to pursue the case and consumers who believe they were illegally overcharged by Safeco can contact the group at:

Download the "friend of the court" brief:

Consumer Watchdog (formerly the Foundation for Taxpayer and Consumer Rights) is a nonpartisan, nonprofit consumer advocacy organization. Learn more at


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Farmers Insurance Number 7 of Top 10 Worst Insurance Companies

July 2008, Insurance Industry Employs “Deny, Delay, Defend” Strategy, Puts Profits Over Policyholders. The rankings show a distinct pattern of insurance industry greed amongst 10 companies that refuse to pay just claims, employ hardball tactics against policyholders, reward executives with extravagant salaries, and raise premiums while hoarding excessive profits.

Farmers – Swiss-owned Farmers Insurance Group consistently ranks at or near the bottom of homeowner satisfaction surveys, and for good reason. For example, Farmers had an incentive program called “Quest for Gold” that offered pizza parties to its adjusters that met low claims payments goals. American Association of Justice

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