The American Association of Justice is a non-profit organization of US and follows their mission which is to promote a fair and effective justice system. Recently the researchers of AAJ underwent an investigation for insurance policies and their effects on USA business and presented the top bizarre insurance companies comprising various insurance fields that include homeowners, life insurers, health insurers, auto insurers and disability insurers. This ranking is based on premium increases, claim denials and refusing insurance to most needy. Check out who is on list? Are you a part of it or not?
So here is the list:
10. Liberty Mutual
Liberty Mutual, home, auto and life insurers, is one of the largest insurance companies in USA. AAJ has ranked it among the most bizarre companies for allegations like claim handling abuses and bid rigging. It hired Mckinsey for implementation of its business tactics. It is also famous for not renewing its insurance policies held by citizens of hurricane susceptible states and northern states.
Liberty mutual is accused of abandoning its policyholders in USA and continuous practices of fraudulent activities with other insurers like bid ragging. All these illegal acts and bad faith insurance policies are causatives of its ranking in this list.
Touchmark is a holding company of many subsidiary companies which provide low cost burial, cancer and other life insurance policies in USA. It was ranked among top 10 bizarre companies owing to its bad faith practices. Racism and discrimination among minorities marks its history that includes charging blacks and other minorities more for burial policies and refusing non- English speaking Americans.
Touchmark is also engaged in many fraudulent activities like misrepresenting the products and sending out mass mailing concerned with Medicare supplement insurance. It also tells lies to elderly policyholders about insurance policies.
8. United Health
UnitedHealth is among the largest health insurers in USA, which was listed by AAJ as one of the worst insurance companies for its bad faith insurance policies. It was fined by several USA insurance departments for defying and denying the claims of its policyholders and doctors. It has also been accused of continually putting profits above the needs of policyholders.
UnitedHealth is well-known for misrepresenting medical products and it was suspended by federal government from marketing its Medicare advantage program in USA.
Farmers insurance company has been ranked among top 10 bizarre companies in USA by AAJ due to its claim handling insurance policies in the auto and homeowners’ insurance and business industry. It victimized both individual and U.S. business by conspiring with other insurance companies and deceiving businesses.
Farmers have been practicing many bad faith insurance policies like engagement in unethical business practices and refusal to pay policyholders claims. It a fined by California Insurance Commissioner in 2007 for increasing premiums.
WellPoint is the largest health insurer in USA that was included in most bizarre insurers by AAJ for its continual bad faith insurance policies. Its history constantly puts the bottom line, payouts to the policyholders and profits above services. Overcharging their customers and engagement in fraudulent activities violating the state insurance laws is responsible for this ranking.
WellPoint has also been accused of not paying doctors hired for its policyholder and of delaying their payments as well. In March 2007, DMHC fined WellPoint for its illegally rescinding insurance policies and for routinely cancelling the policies of chronically ill patient and pregnant females.
Conseco is an Indiana based long term policy insurance company with its main consumer base being elderly. It is ranked as one among the worst USA insurance companies practicing several bad faith policies. It has been accused of taking advantages of its elderly policyholders by defying and denying their claims as elderly policyholders cannot fight back.
Conseco has also been in several unethical business practices along with its subsidiaries have been subjected to many complaints regarding their unethical insurance policies. The National Association of Insurance Commissioner, in May 2008, fined Conseco for it abuses in insurance business.
4. State Farm
Famous for continually denying, defying and delaying claims to the extent of forgery sometimes avoiding paying claims at any cost, State Farm has been ranked as fourth most bizarre insurance company in USA by AAJ. Different bad faith insurance practices are responsible for its defaming.
State farm is notorious for handling its homeowners’ claims, routinely denying them without basis and told their employees to alter damage reports. It has also worked with Mckinsey & Company like Allstate to deny claims. It was ruled by a jury as recklessly acting insurance company of USA.
3. Beneficial Insurance companies AIG
American International group is an insurance and financial conglomerate ranked as third most bizarre insurance company in USA by AAJ. It is the biggest insurer in the world. Owing to its bad faith practices, it has been labeled as The New Enron. Several facts are present behind this label including a billion dollar in corporate fraud and raising prices during major USA catastrophes.
It has also conspired with other insurance companies to fake their bids in commercial insurance market and created and illusion of competition in business market. AIG has also developed many schemes to reject several automobile warranty claims.
Unum is one of the leading USA disability insurers, ranked as second most bizzare USA insurance company by AAJ. It has built its reputation in delaying claims for up too several years now. Unum has been producing a bad impact on US business policies as well.
It is accused of many bad faith practices and from its previous employers it was found out that they were ordered to deny claims to save the company money. Many stories epitomize its disrespect towards its customers including the story of a woman with Multiple Sclerosis whose claim was denied for 2 years by Unum.
1. Powerful Insurance companies Allstate
On the top of the list we have Allstate, number one insurance company placing profits over policyholders and popular for their greed allover USA. According to AAJ, Allstate is practicing bad faith insurance practices including delaying, denying and defying claims. It has been accused because of increasing frustration among policyholders in USA. It defies and delays the claims unnecessarily.
McKinsey report is another reason for Allstate being the worst in USA. Mckinsey & Company is a consulting firm in USA that devised Allstate different methods to increase their profits. These were not business friendly methods and received several complaints.
Constantly telling lies to their customers, Allstate has become the most bizzare insurance company. From Good Hand to Boxing Gloves a book that was written by David Berardinelli, Michael Freeman and Aaron DeShaw revealing facts and figures about it.