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State Farm Guilty
In 2001, the Utah Supreme Court noted the following:
"State Farm repeatedly
and deliberately deceived and cheated its customers."
"For over two decades, State
Farm set monthly payment caps and individually
rewarded those insurance adjusters who paid less
than the market value for claims.
Agents changed the contents of files,
lied to customers, and committed other dishonest
and fraudulent acts in order to meet financial
goals."
--Trial News, Dec 2001
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| "The insurance
companies say they're here to protect people.
But then when you need them most, they do something
like this."
--Ethel Adams |
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The Courts & Press Expose Fraudulent Practices by Insurers
As a personal injury sufferer, you may have already discovered that
in your time of need, your insurance company may not be there for
you.
If that is the case, you are not alone. Over the past few years,
the fraudulent activities of giant insurance companies such as Allstate
and State Farm have been exposed on King-5 News, on Dateline,
and in courts of law.
The General Version of the Story
Like all commercial companies, insurance companies are in business
to make a profit.
They receive money when you make your regular
insurance payments. They pay out money
on claims.
To make the most amount of money possible, insurance companies
can:
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Pay out less claims |
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Pay out less on the claims they
do pay |
Although the goal of making the most money possible is acceptable,
when insurance companies intentionally take actions that mislead
or mistreat you as a policy holder, it is unacceptable and often
illegal.
A Specific Version of the Story
Perhaps the most offensive and well-known example of an insurance
company acting in an inappropriate manner involves the case of Ethel
Adams.
At the age of 60, Ethel was in a coma for nine days and a hospital
and nursing home for five months after her car was smashed by a
pickup truck that ran into oncoming traffic.
Despite having $2 million of insurance coverage, a subsidiary of
Farmer's Insurance decided Ethel did not qualify to receive any
money, arguing her car crash was not an accident. The company's
reasoning was this:
- Michael Testa intentionally forced his girlfriend off the road
- The girlfriend was driving the pickup truck that hit Ethel
- Therefore, the pickup truck did not hit Ethel by accident,
but on purpose
Ethel's medical bills rose to over $500,000 while she struggled
to walk again. The state of Washington paid those bills through
workers' compensation while the insurance company contributed nothing.
Coming under fire from the press and legal system, Farmers insisted
it did not deny Ethel's claim, despite Ethel having a letter from
the company denying all claims.
Farmers attempted other tactics to avoid facing Ethel's rightful
claim. Finally, on October 19, 2005, the state of Washington gave
Farmers until the end of October 20, 2005 to agree to pay Ethel
or face legal action.
Who Protects Your Rights If Your Insurance Company Doesn’t?
In an unrelated case in 2001, the Utah Supreme Court found that
"State Farm's fraudulent practices were consistently directed
to persons – poor racial or ethnic minorities, women, and
elderly individuals – who State Farm believed would be less
likely to object or take legal action."
In other words, you cannot know your insurance company
has your best interests in mind. Remember, the less money
they pay out, the more money they make.
Learn how an attorney can
protect your personal injury rights, or contact
us to arrange a no-charge consultation to ensure you receive
your rightful compensation.
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