The following publication is from the AAJ. Mark Caruso, a lawyer for personal injury victims and wrongful death victims is a member of AAJ.
Mark Caruso is a former insurance company attorney who now works for victims of car accidents. Caruso Law Offices, PC exclusively handles motor vehicle accidents and claims against insurance companies.
For a free consultation, contact Mark Caruso at (505) 883-5000 or see their web site at www.carusolaw.com.
According to Mark Caruso, insurance companies in America have one job…make money for their corporate owners. It’s a simple mathematical formula to do so….Charge more money for premiums (money in) and pay less on clams (money out).
Our job as personal injury and wrongful death attorneys is to get as much money for our clients from the insurance adjusters as possible. Insurance adjusters are only focused on paying out the least money possible. They use tactics to deny or devalue your insurance claim.
How They Raise Premiums, Deny Claims, and Uninsured Motorist Refuse Insurance to Those Who Need It Most
To identify the worst insurance companies for consumers, researchers at the American Association for Justice (AAJ) undertook a comprehensive investigation of thousands of court documents, SEC and FBI records, state insurance department investigations and complaints, news accounts from across the country, and the testimony and depositions of former insurance agents and adjusters. Our final list includes companies across a range of different insurance fields, including homeowners and auto insurers, health insurers, life insurers, and disability insurers.Allstate–The Worst Insurance Company in America
One company stood out above all others. Allstate’s concerted efforts to put profits over policyholders has earned its place as the worst insurance company in America. According to CEO Thomas Wilson, Allstate’s mission is clear:“our obligation is to earn a return for our shareholders.”Unfortunately, that dedication to shareholders has come at the expense of policyholders. The company that publicly touts its “good hands” approach privately instructs agents to employ a “boxing gloves” strategy against its own policyholders (1). In the words of former Allstate adjuster Jo Ann Katzman, “We were told to lie by our supervisors–it’s tough to look at people and know you’re lying.”
The Insurance Industry’s Wealth
The insurance industry has so much excess cash it may spark a downturn in the industry. According to analysts at Standards & Poor’s, U.S. insurers are sitting on too much capital, and will likely endure at least three years of negative performance as a result (2). The U.S. insurance industry takes in over $1 trillion in premiums annually (3). It has $3.8 trillion in assets, more than the GDPs of all but two countries in the world (United States and Japan) (4). Over the last 10 years, the property/casualty insurance industry has enjoyed average profits of over $30 billion a year. The life and health side of the insurance industry has averaged another $30 billion (5). The CEOs of the top 10 property/casualty firms earned an average $8.9 million in 2007. The CEOs of the top 10 life and health insurance companies earned even more–an average $9.1 million. And for the entire industry, the median insurance CEO’s cash compensation still leads all industries at $1.6 million per year (6).The Ten Worst Insurance Companies
- Allstate
- Unum
- AIG
- State Farm
- Conseco
- WellPoint
- Farmers
- UnitedHealth
- Torchmark
- Liberty Mutual
Profits Over Policyholders
But some companies have discovered that they can make more money by simply paying out less. As a senior executive at the National Association of Insurance Commissioners (NAIC), the group representing those who are supposed to oversee the industry, said, “The bottom line is that insurance companies make money when they don’t pay claims” (7). One example is Ethel Adams, a 60-year-old woman left in a coma and seriously injured after a multi-vehicle crash in Washington State. Her insurance company, Farmers, decided the other driver had acted intentionally and denied her claim, contending that an intentional act is not an accident. Another example is Debra Potter, who for years sold Unum’s disability policies until she herself became disabled and had to stop working. All along, Potter thought she was helping people protect their future, but when her own time of need came, she was told her multiple sclerosis was “self reported” and her claim denied–by Unum, the very company whose policies she had sold. In cases like these, and countless others, the name of the game is deny, delay, defend–do anything, in fact, to avoid paying claims. For companies like Allstate, there are corporate training manuals explaining how to avoid payments, portable fridges awarded to adjusters who deny the most claims, and pizza for parties to shred documents.1. Allstate
- CEO: Thomas Wilson
- 2007 compensation $10.7 million (predecessor Edward Liddy made $18.8 million in compensation and an additional $25.4 million in retirement benefits)
- HQ: Northbrook, IL
- Profits: $4.6 billion (2007)
- Assets: $156.4 billion (8)
- Deny
- Delay
- Defend
2. Unum
- CEO: Thomas Watjen – 2007 compensation $7.3 million
- HQ: Chattanooga, TN
- Profits: $679 million (2007)
- Assets: $52.4 billion(38)
3. AIG
- CEO: Robert Willumstad
- Former CEO Martin J. Sullivan was fired in June 2008, and is expected to receive as much as $68 million, despite leading AIG to record losses over his three-year tenure–2007 compensation $14.3 million.
- HQ: New York, NY
- Profits: $6.2 billion (2007)
- Assets: $1.06 trillion48
…[Hurrican Andrew] is an opportunity to get price increases now.”In 1992, on the day Hurricane Andrew landed in Florida, AIG Executive Vice-President J.W. Greenberg, son of then-CEO Maurice Greenberg, sent a company-wide memo saying, “We have opportunities from this and everyone must probe with brokers and clients. Begin by calling your underwriters together and explaining the significance of the hurricane. This is an opportunity to get price increases now. We must be the first and it begins by establishing the psychology with our own people. Please get it moving today”(56). Similarly, the September 11th terrorist attacks were to most people a terrible tragedy. To Maurice Greenberg, the “opportunities for his 82-year-old company have never been greater”(57). In the immediate aftermath of the attacks, prices for insurance soared by what Greenberg described as “leaps and bounds.” “It’s a global opportunity,” the CEO said at the time. “It’s not just in the United States, but rates are rising throughout the world. So our business looks quite good going forward”(58). Greenberg also said of the increased awareness of the need for insurance that the attacks prompted, “AIG is well positioned–probably as well as it’s ever been in this marketplace” (59). AIG executives are unapologetic about their reputation for opportunism. “We’ve always been opportunistic. When we see opportunities, we will never change. At AIG it’s part of our culture” (60). AIG’s opportunism has also crossed the line into fraud. According to the Federal Bureau of Investigation (FBI), insurance fraud totals more than $40 billion and costs the average family as much as $700 per year. However, while the insurance industry only talks about fraud committed by its policyholders, what interests the FBI is the increase in corporate fraud by the insurance companies them- selves, leading the agency to establish it as one of its top investigative priorities (61). No company is a better example of this kind of fraud than AIG. In 2006, AIG paid $1.6 billion to settle charges of a variety of financial shenanigans that had commentators describing AIG as “the new Enron” (62). Two years later, five insurance executives were found guilty of fraud (63). The fraud accusations were traced back to longtime CEO Maurice Greenberg, who was ousted from the company he had led for 38 years (64). Greenberg was identified by prosecutors as an “unindicted co-conspirator,” and notified that the Securities and Exchange Commission, which had already fined the company $126 million, was likely to pursue civil charges against him for two separate incidences of fraud (65). AIG was also fined millions of dollars by state insurance regulators, and faces charges that they bilked pension funds out of billions of dollars (66). But that was not the end of the AIG fraud saga. Greenberg, who once described civil justice attorneys as “terrorists,” launched an epic battle of lawsuits and countersuits with his former company (67). Suddenly, the $1.6 billion AIG paid to settle claims of fraud seemed to pale in comparison to the charges being exchanged between those who knew better than anyone the true extent of the fraud. AIG now claims Greenberg “misappropriated” $20 billion, and Greenberg in turn says AIG concealed $4 billion in losses (68). In 2006, AIG was implicated in the manipulation of local government bond issues. At least $7 billion worth of “phantom bonds,” which were intended to aid the poor and supply computers to inner city schools, have instead only benefited companies such as AIG. In one such “phantom bonds” case in Florida, an AIG unit conspired with other financial services firms to extract fees from a $220 million bond issue that was intended to promote afford- able housing for low income families. Unbeknownst to the local government agency involved, AIG’s deal meant the less money that actually went to affordable housing, the more money AIG and its fellow companies would make. AIG and its co-conspirators eventually took $12 million in fees. Not a penny went to the affordable housing. The deal also violated U.S. tax laws, which would eventually force AIG to settle with the IRS. AIG was involved in similar deals in Georgia, Oklahoma, and Tennessee (69).
4. State Farm
- CEO: Edward B. Rust Jr. – 2007 compensation $11.7 million
- HQ: Bloomington, IL
- Profits: $5.5 billion (2007)
- Assets: $181.4 billion(70)
They don’t want you to know what you really have covered.”In April 2007, State Farm agreed to re-evaluate more than 3,000 Hurricane Katrina claims, and within a few months had paid nearly $30 million in additional settlements (79). When a grand jury later issued subpoenas probing new claims against State Farm, the company sued Mississippi Attorney General Jim Hood. Hood decried the lawsuit, saying the company’s agreement to reopen claims had never been intended as “blanket immunity” from future probes (80). Like Allstate, State Farm used consulting giant McKinsey & Co. The McKinsey concept involves cutting spending on claims payments to boost profits. Agents steeped in the McKinsey way speak of the “three D’s”– deny the claim, delay the payment, and then do anything to defend against a lawsuit. In 1994, the Northridge earthquake in California killed 57 people, injured 9,000, and caused an estimated $33.8 billion in damage. It was the costliest earthquake in U.S. history, and insurance companies such as State Farm did everything they could to avoid having to pay for it. After it hit, a State Farm employee testified that company officials forged signatures on earthquake waivers to avoid paying quake-related claims and then withheld evidence when the company was sued. State Farm and other insurers accused of mishandling Northridge claims were fined over $3 billion in penalties; however, State Farm never actually paid the fines. Instead, an insurance department whistle-blower would eventually reveal that the insurers donated $12 million to two non-profit foundations created by insurance commissioner Chuck Quackenbush in what amounted to little more than a bribe (81). In 1999, a series of powerful tornadoes killed 44 people in Oklahoma and caused $1.8 billion in damages. Homeowners brought a class-action suit against State Farm, alleging the company had tried to undervalue damage to homes or claim damage was caused by other factors such as faulty construction. A jury eventually ruled that State Farm acted “recklessly” and “with malice” and disregarded its duty to policyholders. The firm that State Farm used to allegedly undervalue damage was Haag Engineering–the same firm that would be accused of mishandling Katrina claims six years later (82). In 1999, despite Oklahoma tornado claims, State Farm earned $1.03 billion in profits after taxes (83). In 2005, despite Hurricane Katrina, State Farm turned a $3.24 billion profit. The following year, without a major catastrophe, profits increased to $5.32 billion, for which CEO Ed Rust received an 82 percent pay raise (84). In fact, since State Farm hired McKinsey, the company has seen profits more than double from its 1990s level to the $5.4 billion it made in 2007. Following the same tactic as Allstate, State Farm has embarked upon a campaign of market withdrawals and non-renewals in the aftermath of Katrina. State Farm has stopped writing new homeowners policies in Mississippi and Florida, and in the latter state non-renewed a further 75,000 policyholders.85 Just as they did in the aftermath of Katrina, State Farm stopped writing new homeowner policies.86 While State Farm will do anything to fight a claim once it has been taken to court, the company has never been shy about using the courts to its own advantage, even when it has to first stack the deck. In the 2004 Illinois Supreme Court election, one justice–Lloyd Karmeier– received huge amounts from State Farm employees, lawyers, and groups to which the insurer belonged. Karmeier won the election and soon after cast a crucial vote reversing a $9 billion judgment against State Farm.87
5. Conseco
- CEO: C. James Prieur – 2007 compensation $2.6 million
- HQ: Indianapolis, IN
- Profits: $179.9 million (2007)
- Assets: $33.5 billion (88)
6. WellPoint
- CEO: Angela F Braly – 2007 compensation $9.1 million
- HQ: Indianapolis, IN
- Profits: $3.2 billion (2007)
- Assets: $51.6 billion (100)
7. Farmers
- CEO: Paul N. Hopkins (Farmers Group Inc. US subsidiary of Zurich Financial Services. Zurich CEO James J. Schiro 2007 compensation $10.3 million)
- HQ: Los Angeles, CA Profits: Zurich Financial–$5.6 billion (2007)
- Assets: $387.7 billion (114)
8. UnitedHealth
- CEO: Stephen J Hemsley – 2007 compensation $13.2 million
- HQ: Minnetonka, MN
- Profits: $4.7 billion (2007)
- Assets: $53.5 billion (137)
9. Torchmark
- CEO: Mark S. McAndrew – 2007 compensation $4.7 million
- HQ: McKinney, Texas
- Profits: $527.5 million (2007)
- Assets: $15.2 billion (157)
10. Liberty Mutual
- CEO: Edmund F. (Ted) Kelly – 2005 compensation $27 million
- HQ: Boston, MA
- Profits: $1.5 billion (2007)
- Assets: $94.7 billion (170)
Conclusion
The insurance industry is in dire need of reform. For too many insurance companies, profits have clearly trumped fair dealing with policyholders. The industry has done all it can to maximize its profits and rid itself of claims. Allstate CEO Thomas Wilson outlined the strategy when he said the company had “begun to think and act more like a consumer products company” (176). Allstate has enjoyed a return double that of the S&P 500, but its policyholders have suffered cancellations, non renewals, and punishing loss-prevention techniques (177). Wilson has been unrepentant: “Our obligation is to earn a return for our share- holders” (178). Wilson is one of many insurance leaders who have lost sight of their legal and ethical responsibility to policy-holders. Now they answer only to Wall Street. The time is due for insurance reform that will level the playing field for consumers.Three Pro-Consumer Insurance Reforms
1. Require Insurers to Work in Good Faith with Consumers
Many states have introduced, and some have passed, “Insurer Fair Conduct” bills which establish a private right of action by a first and/or third party against insurers for failure to act in good faith. Insurers must be held to fair conduct standards when evaluating and settling claims.2. Require Prior Approval of Rate Increases
Require insurers to obtain commissioner’s approval of proposed rate increases of 10 percent or greater, and authorize interested parties to intervene in rate proceedings. In most states, insurers can raise rates without the approval of the Insurance Commissioner. Rates are either automatically approved absent action on the part of the Commissioner, or the Commissioner has no authority to disapprove increases. The goal is to explicitly authorize– or even require–the Commissioner to hold a hearing prior to approval.3. Establish an Insurance Consumer Advocate
States should ensure there is a consumer advocate either on the state’s Insurance Commission or within the office of the Insurance Commissioner. Some states have already done so. For example, in 1991, the West Virginia legislature created the Office of Consumer Advocacy, charged with representing consumers’ interests in health care issues. The Consumer Advocate is also authorized to represent the public interest in matters coming before the Insurance Commission. Notes- “In Tough Hands at Allstate,” BusinessWeek, May 1, 2006.
- “Analysts: U.S. Insurers Sitting With Excess Capital Face RockyRoad,” Insurance Journal, June 5, 2008.
- 2006 premiums totaled $1,032,512,780,000: “Net Premiums Written, Property/Casualty and Life/Health,” Insurance Information Institute (III), https://www.iii.org/economics/national/premiums/.
- “Insurers as Investors,” Insurance Information Institute, https://www.iii.org/economics/investors/intro/.
- “Industry Financials and Outlook,” Insurance Information Institute (III), https://www.iii.org/media/industry/; “Life Insurance,” Insurance Information Institute (III), https://www.iii.org/media/facts/ statsbyissue/life/.
- “CEOs Rake in Cash but not Stock,” National Underwriter, January 2, 2008.
- Charles Duhigg, “Aged, Frail, and Denied Care by Their Insurers,” The New York Times, March 26, 2007, www.nytimes.com/2007/03/26/ business/26care.html?ex=117.
- Fortune 500, CNNMoney.com; AP, “Allstate CEO Gets $10.7M in First Year,” CNBC, April 2, 2008, https://www.cnbc.com/id/23925420/ for/cnbc.
- Spencer Hsu, “Insurers Retreat from Coasts,” Washington Post, April 30, 2006, https://www.washingtonpost.com/wp-dyn/content/ article/2006/04/29/AR2006042901364.html.
- “In Tough Hands at Allstate,” BusinessWeek, May 1, 2006.
- There is no better analysis of the McKinsey documents than the book, “From ‘Good Hands’ to Boxing Gloves,” by David Berardinelli, Michael Freeman, and Aaron DeShaw.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg News, September 2007.
- Drew Griffin and Kathleen Johnston, “Auto Insurers Play Hardball in Minor-Crash Claims,” CNN, February 9, 2007.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg News, September 2007.
- “The Good Hands Company Or A Leader in Anti-Consumer Practices?” Consumer Federation of America, July 18, 2007.
- “Insurance Commissioner Tyler Fines Allstate $750,000 for Non- Compliant Consumer Notices,” Maryland Insurance Administration (MIA) Press Release, December 20, 2007.
- “Texas Reaches Agreement with Allstate Regarding Homeowners Insurance Reductions and Refunds,” Texas Department of Insurance Press Release, May 12, 2008.
- Michelle Kupra, “Allstate Sponsorships Raise Local Ire,” New Orleans Times-Picayune, January 6, 2008.
- “Home Insurers’ Secret Tactics Cheat Fire Victims, Hike Profits,” Bloomberg.com, August 3, 2007.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg News, September 2007.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg News, September 2007.
- “In Tough Hands at Allstate,” BusinessWeek, May 1, 2006.
- “Duel in the Sun,” Best’s Review, March 2008.
- Rebecca Mowbray, “Allstate Postings Don’t Include Catastrophe Claim Information,” New Orleans Times-Picayune, April 11, 2008.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg News, September 2007.
- “In Tough Hands at Allstate,” BusinessWeek, May 1, 2006.
- “Allstate’s Smart Policies,” Barron’s Online, December 10, 2007.
- Partial Transcript of Presentation to Edward M. Liddy, Chairman and CEO, The Allstate Corporation Twenty-First Annual Strategic Decisions Conference, Sanford C. Bernstein & Co., June 2, 2005.
- Peter Gosselin, “Insurers Learn to Pinpoint Risks–and Avoid Them,” Los Angeles Times, November 28, 2006; California Department of Insurance Press Release, May 23, 2007; One of Allstate’s affiliates, Deerbrook Auto Insurance, has announced it is pulling out of the California market. (See https://www. insurancejournal.com/news.west/2007/06/28/81199.htm.)
- Stephanie Grace, “Bad Policy: Allstate Cancellations Draw the Scrutiny of Insurance Commissioner Jim Donelon,” New Orleans Times-Picayune, March 11, 2007.
- “Editorial: Be Prudent on Insurance,” New Orleans Times-Picayune, May 20, 2007. Also see articles “Allstate Defies La. Insurance Chief,” New Orleans Times-Picayune, March 9, 2007 and “Allstate Finds Way Around State Rule,” New Orleans Times-Picayune, April 25, 2007.
- Molly McCartney, “Insurance: ‘Dumped at the Altar’ by Allstate,” The Anna Maria Islander, April 10, 2007.
- Randy Diamond, “Allstate Policy Cuts Get Scrutiny,” Palm Beach Post, February 4, 2008.
- “Allstate Agrees to Comply with Directive on Not Renewing Coastal Homeowners Policies,” New York State Insurance Department, September 12, 2007.
- Marc Lifsher, “Is Allstate’s New Policy A Brushoff?” Los Angeles Times, February 16, 2007.
- Joseph Treaster, “Small Clause, Big Problem,” The New York Times, August 4, 2006.
- Brian Faler, “Lott, ‘Scorned’ After Katrina, Targets State Farm, Allstate,” Bloomberg News, May 21, 2007.
- Fortune 500, CNNMoney.com; Forbes.com, https://www. forbes.com/finance/mktguideapps/personinfo/ FromPersonIdPersonTearsheet.jhtml?passedPersonId=894922;
- Peter Gosselin, “The Safety Net She Believed In Was Pulled Away When She Fell,” Los Angeles Times, August 21, 2005.
- Peter Gosselin, “The Safety Net She Believed In Was Pulled Away When She Fell,” Los Angeles Times, August 21, 2005.
- David Plumb–Bloomberg News, “Insurer Outs CEO, Names Interim Chief,” Pittsburgh Post-Gazette, April 1, 2003.
- Peter Gosselin, “The Safety Net She Believed In Was Pulled Away When She Fell,” Los Angeles Times, August 21, 2005.
- Victoria Colliver, “State Fines Big Insurer $8 Million,” San Francisco Chronicle, October 3, 2005.
- Charles Duhigg, “Aged, Frail, and Denied Care by Their Insurers,” The New York Times, March 26, 2007.
- “Insurance Watchdog Petitions California Commissioner to Bar ‘Outlaw’ Insurer,” Insurance Journal, September 6, 2006.
- Daniel Yi, “Case Reviews Fall Short for Hurt Workers,” Los Angeles Times, April 12, 2007.
- “Grassley Seeks Information from Long-Term Care Insurance Providers,” Senator Grassley Press Release, October 2, 2007.
- “Sacked AIG Chief To Get Up To 68 Mln Dlrs: Watchdog,” AFP, June 18, 2008; AIG DEF 14a SEC filing, May 2008; Fortune 500 2008, CNNMoney.com.
- Dean Starkman, “AIG’s Other Reputation,” Washington Post, August 21, 2005.
- Dean Starkman, “AIG’s Other Reputation,” Washington Post, August 21, 2005; Carl T. Hall, “Big Insurer is Tough on Claims,” San Francisco Chronicle, July 30, 1990.
- Dean Starkman, “AIG’s Other Reputation,” Washington Post, August 21, 2005.
- Carl T. Hall, “Big Insurer is Tough on Claims,” San Francisco Chronicle, July 30, 1990.
- Dean Starkman, “AIG’s Other Reputation,” Washington Post, August 21, 2005.
- “McCollum, Sink and McCarty Announce $12.5 Million AIG Insurance Settlement,” Florida Office of Insurance Regulation, January 29, 2008.
- “California Insurance Commissioner Steve Poizner Announces $443.5 Million Arbitration Award,” California Department of Insurance Press Release, March 2, 2007.
- “Insurer Sees Hurricane As Chance to Boost Rates; AIG Memo Sent Out as Storm Crashed Ashore,” Washington Post, September 5, 1992.
- James Flanigan, “Higher Premiums Are Likely to Slow Economy,” Los Angeles Times, October 21, 2001.
- Joseph Treaster, “Insurance Prices Soaring, A.I.G. Chief Says,” The New York Times, October 10, 2001.
- Chris Woodard, “New York, New York Rate Hikes Put Insurance Giant In Driver’s Seat,” Investor’s Business Daily, November 29, 2001.
- Joseph Treaster, “Insurance Prices Soaring, A.I.G. Chief Says,” The New York Times, October 10, 2001.
- “Financial Crimes Report to the Public,” Federal Bureau of Investigation (FBI), May 2005.
- Ron Scherer, “A Top Insurance Company as the New Enron?” Christian Science Monitor, April 1, 2005.
- Diane Brady and Marcia Vickers, “AIG: What Went Wrong,” BusinessWeek, April 11, 2005.
- Mark Ruquet, “Fraud Trial Targets Gen Re, AIG Execs,” National Underwriter, January 14, 2008.
- “Ex-AIG Chief Greenberg May Face SEC Charges,” Reuters, May 21, 2008; Diane Brady and Marcia Vickers, “AIG: What Went Wrong,” BusinessWeek, April 11, 2005; Reuters, “Greenberg SEC Probe Looks at Two Deals: Report,” Business Insurance, May 27, 2008.
- “American International Group (AIG) Companies Fined for Violating Insurance, Workers’ Comp Laws,” Oregon Department of Consumer & Business Services Press Release, July 5, 2007; “Holland Announces Biggest Insurance Fine in State History,” Oklahoma Insurance Department Press Release, March 20, 2007; Reuters, “AIG Faces Lawsuit By Florida Pension Fund,” Business Insurance, May 22, 2008.
- “ATLA Blasts Greenberg for Terrorist Remark; TTLA Follows Suit,” Insurance Journal, February 27, 2004; Phil Milford, “Judge Says Ex- CEO Can’t Countersue AIG Officials,” Washington Post, June 14, 2007; “AIG’s Former Chairman Hank Greenberg Sues Group,” Forbes, June 21, 2007.
- “Hank Greenberg Sues AIG, Saying it Hid Losses,” MarketWatch, May 11, 2008; Bloomberg News, “AIG Sues Former Chief Over $20 Billion in Stock,” International Herald Tribune, March 27, 2008.
- William Selway, Martin Z. Braun and David Dietz, “Broken Promises,” Bloomberg.com, October 4, 2006.
- Fortune 500, CNNMoney.com; Michelle Koetters, “State Farm Reports Record Earnings for 2007,” The Pantagraph, March 1, 2008.
- “Epsilon blows as hurricane season ends,” UPI, November 30, 2005; “Deaths of evacuees push toll to 1,577,” New Orleans Times- Picayune, May 19, 2007.
- “Insurance Claims Payment Processes in the Gulf Coast after the 2005 Hurricanes,” Testimony of Robert Hartwig before the U.S. House Financial Services Committee Subcommittee on Oversight and Investigations, February 28, 2007.
- “Miss. Attorney General Sues State Farm for Breach of Contract,” Insurance Journal, June 12, 2007.
- See Amy Bach et al, “Lessons Learned After the Storms,” TRIAL, August 2007, citing email from Neysa P. Hurst, Asst. Dir. Office of Property & Casualty Consumer Affairs, Louisiana Dept. of Ins. to Amy Bach, May 9, 2007.
- “Live From…”, CNN, 6/1/06, https://transcripts.cnn.com/ TRANSCRIPTS/0606/01/lol.03.html.
- “Katrina Victims Challenge Insurance Denials–NOLA Flooding Caused by Human Neglect of Levees, One Suit Argues,” ConsumerAffairs.com, 9/20/05, https://www.consumeraffairs.com/ news04/2005/katrina_scruggs.html.
- “Home Insurers’ Secret Tactics Cheat Fire Victims, Hike Profits,” Bloomberg.com, August 3, 2007.
- Brian Faler, “Lott, ‘Scorned’ After Katrina, Targets State Farm, Allstate,” Bloomberg News, May 21, 2007.
- “State Farm Pays Additional $29.8 Million in Katrina Claim Re- Evaluations,” Mississippi Insurance Department Press Release, August 13, 2007.
- Holbrook Mohr, “Miss A.G.: State Farm Suit Based on ‘Lies, Speculation and Innuendo,” Insurance Journal, February 5, 2008.
- Reynolds Holding, “A Big Corporate SLAPP in Citizen’s Faces,” San Francisco Chronicle, October 22, 2000.
- Associated Press, “State Farm Questioning Haag Engineering Firm’s Katrina Work,” Insurance Journal, September 25, 2006, www. insurancejournal.com/news/southeast/2006/09/25/72759.htm.
- “State Farm profit drops 22% in ’99,” The Chicago Daily Herald, March 3, 2000.
- “State Farm CEO Gets 82% Pay Raise,” Insurance Journal, March 7, 2007.
- Tom Zucco, “State Farm to Florida Homeowners: No Thanks,” Tampa Bay Times, February 23, 2008; Tom Zucco, “State Farm’s Nonrenewal Estimate Low,” Tampa Bay Times, November 2, 2007,
- “Insuring America: Homeowners Due Insurance Help,” The Oklahoman, September 10, 2003.
- “Our View on Filling Court Seats,” USA Today, November 5, 2007.
- Fortune 500, CNNMoney.com; Forbes.com, https://www. forbes.com/finance/mktguideapps/personinfo/ FromPersonIdPersonTearsheet.jhtml?passedPersonId=1100460
- Charles Duhigg, “Aged, Frail and Denied Care by their Insurers,” The New York Times, March 26, 2007.
- Charles Duhigg, “Aged, Frail and Denied Care by their Insurers,” The New York Times, March 26, 2007.
- Charles Duhigg, “Aged, Frail and Denied Care by their Insurers,” The New York Times, March 26, 2007.
- Stephen Taub, “Judge Orders $63 Million Conseco Payback,” CFO.com, October 25, 2004.
- Stephen Taub, “Judge Orders $63 Million Conseco Payback,” CFO.com, October 25, 2004.
- “Conseco Founder’s Ind. Mansion Taken off Auction Block,” Associated Press, January 8, 2007.
- Matthew Dublin, “Commission Closes Conseco Fraud Case,” CCH Wall Street, July 14, 2006.
- Charles Duhigg, “Aged, Frail and Denied Care by their Insurers,” The New York Times, March 26, 2007.
- Charles Duhigg, “Aged, Frail and Denied Care by their Insurers,” The New York Times, March 26, 2007.
- Charles Duhigg, “Aged, Frail and Denied Care by their Insurers,” The New York Times, March 26, 2007.
- Press Release: State Insurance Regulators Fine Conseco, National Association of Insurance Commissioners, May 7, 2008.
- Fortune 500, CNNMoney.com; Forbes.com, https://www. forbes.com/finance/mktguideapps/personinfo/ FromPersonIdPersonTearsheet.jhtml?passedPersonId=870274
- Robert Kazel, “Anthem, WellPoint Merge Into Largest Health Plan,” Amednews.com, December 20, 2004.
- Patrick McGeehan, “The Agenda: A Win-Win Merger (For the Bosses, That Is), The New York Times, July 4, 2004.
- Lisa Girion, “Blue Cross Cancellations Called Illegal,” Los Angeles Times, March 23, 2007
- Press Release: California Insurance Commissioner Steve Poizner Announces $12.6 million Action Against Blue Shield for Rescissions and Poor Claims Processing,” California Department of Insurance, December 13, 2007.
- Press Release: California Insurance Commissioner Steve Poizner Announces $12.6 million Action Against Blue Shield for Rescissions and Poor Claims Processing,” California Department of Insurance, December 13, 2007.
- Lisa Girion, “L.A. Sues Anthem Blue Cross Over Rescissions,” Los Angeles Times, April 17, 2008.
- Lisa Girion, “L.A. Sues Anthem Blue Cross Over Rescissions,” Los Angeles Times, April 17, 2008.
- Press Release: Insurance Commissioner Announces Agreement with Rocky Mountain Hospital and Medical Service, Inc. d/b/a/ Anthem Blue Cross and Blue Shield, Nevada Division of Insurance, January 7, 2008.
- Press Release: Two Insurance Companies Refund Colorado Customers $5.7 Million for Billing Errors and Inaccurate Recordkeeping, Colorado Division of Insurance, February 14, 2008.
- Press Release: Anthem Directed to Refund $23.7 Million to 81,000 Elderly, Disabled in Kentucky, Kentucky Office of Insurance, November 22, 2005.
- Victoria Colliver, “WellPoint Settles Suit with Doctors,” San Francisco Chronicle, July 12, 2005, D1.
- Lisa Girion, “Doctors Balk at Request for Data,” Los Angeles Times, February 12, 2008.
- Lisa Girion, “Doctors Balk at Request for Data,” Los Angeles Times, February 12, 2008.
- The Global 2000, Forbes.com, https://www.forbes.com/lists/ 2008/18/biz_2000global08_The-Global-2000_Rank.html.
- ConsumerReports.org, Ratings Homeowner Insurance, September 2004; JD Power, https://www.jdpower.com/insurance.
- “Zurich, 9 States Settle Bid-Rigging Case for $171 Million,” Insurance Journal, March 19, 2006; “Zurich American Implements Reforms, Pays Consumers Millions: Giant Insurer Settles Suits Brought By States,” ConsumerAffairs.com, December 7, 2006; “Zurich Settles Bid-Rigging Probe,” New York Attorney General’s Office Press Release, March 27, 2006.
- Claudia Rowe, “Woman Fights Insurance Giant and Wins,” Seattle Post-Intelligencer, October 20, 2005.
- Market Conduct Examination Report: Farmers Insurance Exchange, North Dakota Insurance Department, June 2007.
- Candace Heckman, “Low-Ball Offers Nothing New in Insurance Industry,” Seattle Post-Intelligencer, May 15, 2003.
- Market Conduct Examination Report: Farmers Insurance Exchange, North Dakota Insurance Department, June 2007.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg, September 12, 2007.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg, September 12, 2007.
- Market Conduct Examination Report: Farmers Insurance Exchange, North Dakota Insurance Department, June 2007; “N.D. Regulator Fines Farmers $750,000,” Associated Press, July 2, 2007.
- David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg, September 12, 2007.
- “Farmers’ Rates Prompt State Action,” Texas Insurance News, Texas Department of Insurance, September 2002.
- R.A. Dyer, “Farmers Draws Most Insurance Complaints,” Fort Worth Star-Telegram, November 19, 2003.
- Terrence Stutz, “State Farm Asks Court to Prevent Forced Rate Cut,” Dallas Morning News, December 3, 2004.
- “Anniversary of Deadly Northridge Quake,” KABC 7, January 17, 2006.
- Virginia Ellis, “Quakenbush OKd Deal to Shield Firm from Fines,” Los Angeles Times, April 27, 2000.
- Karen Robinson-Jacobs, “Homeowners Win $20 Million from Insurer in Settlement,” Los Angeles Times, March 7, 2000.
- Virginia Ellis, “Quackenbush OKd Deal to Shield Firm from Fines,” Los Angeles Times, April 27, 2000.
- Virginia Ellis, “Quackenbush OKd Deal to Shield Firm from Fines,” Los Angeles Times, April 27, 2000.
- Virginia Ellis, “Quackenbush OKd Deal to Shield Firm from Fines,” Los Angeles Times, April 27, 2000.
- Lynda Gledhill, “Embattled Quackenbush Quits in Disgrace, Resignation Doesn’t End Legal Problems for Insurance Commissioner,” San Francisco Chronicle, June 29, 2000.
- Market Conduct Examination Report: Farmers Insurance Exchange, North Dakota Insurance Department, June 2007.
- Marc Lifsher, “Farmers Insurance to Pay Refund,” Los Angeles Times, September 6, 2007.
- https://finapps.forbes.com/finapps/jsp/finance/compinfo/ CIAtAGlance.jsp?tkr=UNH; April 2007 UnitedHealth Def 14a SEC Filing https://www.sec.gov/Archives/edgar/data/731766/ 000119312508093196/ddef14a.htm#toc78885_21.
- “Health Insurance,” Insurance Information Institute (III), https://www.iii.org/media/facts/statsbyissue/health/.
- George Anders, “UnitedHealth Directors Strive to Please Chief,” Wall Street Journal, April 18, 2006.
- George Anders, “UnitedHealth Directors Strive to Please Chief,” Wall Street Journal, April 18, 2006.
- George Anders, “UnitedHealth Directors Strive to Please Chief,” Wall Street Journal, April 18, 2006.
- Vanessa Fuhrman, “Options Data Unsealed in UnitedHealth Case,” Wall Street Journal, June 11, 2008.
- Joshua Freed, “UnitedHealthcare’s Stock Options Problem,” Associated Press, October 16, 2006.
- Peter Lattman, “UnitedHealth CEO McGuire Gives Back $620 Million,” Wall Street Journal, December 7, 2007.
- Peter Lattman, “UnitedHealth CEO McGuire Gives Back $620 Million,” Wall Street Journal, December 7, 2007.
- Sarah Lueck and Vanessa Fuhrmans, “New Medicare Drug Benefit Sparks an Industry Land Grab,” Wall Street Journal, January 25, 2006.
- Sarah Lueck and Vanessa Fuhrmans, “New Medicare Drug Benefit Sparks an Industry Land Grab,” Wall Street Journal, January 25, 2006.
- Karl Stark, “Some See Conflict in Dual Role,” Philadelphia Inquirer, December 20, 2007, A01.
- Karl Stark, “Some See Conflict in Dual Role,” Philadelphia Inquirer, December 20, 2007, A01.
- Robert Pear, “Medicare Audits Show Problems in Private Plans,” The New York Times, October 7, 2007.
- David Phelps, Where Costs and Care Collide,” Star Tribune, June 25, 2006.
- David Wren, “Insurance Firm Rankles S.C. Doctors,” Myrtle Beach Sun News, December 21, 2007.
- Scott Simonson, “UnitedHealthcare fined $364,750,” Arizona Daily Star, March 11, 2006.
- David Phelps, “Where Costs and Care Collide,” Star Tribune, June 25, 2006.
- David Phelps, “Where Costs and Care Collide,” Star Tribune, June 25, 2006.
- Reed Abelson, “Inquiry Set on Health Care Billing,” The New York Times, February 14, 2008.
- Pamela Yip, “CEOs Rewarded Nicely in 2007,” Dallas Morning News, May 4, 2008; Fortune 500 2008, CNNMoney.com.
- “Torchmark Corporation,” Hoovers Company In-Depth Reports, June 4, 2008.
- Russell Hubbard, “Torchmark’s Andrew Named CEO,” Birmingham News, August 3, 2005; “Settlement Reached in Language Bias Case,” San Jose Mercury News, September 19, 1991.
- “Torchmark’s Stock Falls,” Mobile Register, October 27, 1993.
- Jane Bryant Quinn, “Your Health May Suffer From Deception ofThese Agents,” Pittsburgh Post-Gazette, April 12, 1999.
- “Torchmark Corporation,” Hoovers Company In-Depth Reports,June 4, 2008.
- Sherri Goodman, “Judge Sets Liberty National Settlement,”Birmingham News, April 6, 2006.
- Glenn Howatt, “Medicare Insurer Under Scrutiny,” Minneapolis- St. Paul Star Tribune, August 7, 2002; Melanie Evans, “Insurance Company Accused of Exploitive Sale Tactics,” Duluth News Tribune, August 7, 2002; Neal St. Anthony, “State Wants to Pull Insurer’s License and Levy Record Fine,” Minneapolis-St. Paul Star Tribune, July 31, 1993; John Kirkpatrick, “Mailings to Elderly Draw Fire,” Dallas Morning News, January 11, 1987.
- “Mutual Mistrust,” Minneapolis-St. Paul Star Tribune, August 26, 2003; Patrick Howe (AP), “Legislative Auditor Questions Secrecy Clause,” Duluth News Tribune, August 21, 2003.
- Glenn Howatt, “Medicare Insurer Under Scrutiny,” Minneapolis- St. Paul Star Tribune, August 7, 2002.
- Hipp v. Liberty National Ins., U.S. 11th Circuit Court of Appeals, 2001.
- Torchmark Corporation 4th Quarter 2005 Conference Call, February 9, 2006, https://www.torchmarkcorp.com/Resources/ 4th%Quarter%202005%20Conference%20Call.pdf.
- “Insurance Firms in a Contract Fight in Alabama,” National Law Journal, February 3, 2003; “Waddell & Reed Settles with Colo. Regulators,” Denver Business Journal, May 4, 2006; Mark Davis, “Mutual Fund Firm’s Claims are Rejected,” Kansas City Star, September 10, 2004.
- Sasha Talcott, “Insurance Firm Chief Gets $27M in 2005,” Boston Globe, June 14, 2006; “Fortune 500 2007,” CNN, https://money.cnn. com/magazines/fortune/fortune500/2007/snapshots/790.html.
- Nina Wu, “Insurance Complaint Ranking Released,” Honolulu Star Bulletin, December 8, 2007; David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg News, September 2007.
- Craig Douglas, “Liberty Stumbles in $100M Legal Spat With OneBeacon,” Boston Business Journal, December 21, 2007.
- Paul Vitello, “Hurricane Fears Cost Homeowners Coverage,” The New York Times, October 16, 2007.
- “Allstate to Comply With N.Y. Anti-Tying Rule on Home Nonrenewals,” Insurance Journal, September 12, 2007.
- Rupal Parekh, “Liberty Mutual Bid-Rigging Suit Can Proceed,” Business Insurance, March 30, 2007.
- Thomas J. Wilson, Pres. & CEO of Allstate Ins. Co., Remarks (Merrill Lynch Insurance Investor Conference , New York, N.Y., Feb. 13, 2007), https://media.allstate.com/categories/24-speeches/ releases/4053-merrill-lynch-insurance-investor-conference- remarks-thomas-j-wilson.
- Edward M. Liddy, Chairman & CEO of Allstate Ins. Co., Remarks (Credit Suisse Ins. Conference, New York, N.Y. Nov. 17, 2006), https://media.allstate.com/categories/24-speeches/releases/4051- credit-suisse-insurance-conference-remarks-edward-m-liddy.
- Spencer S. Hsu, “Insurers Retreat from Coasts,” Washington Post, April 30, 2006, www.washingtonpost.com/wp-dyn/content/ article/2006/04/29/AR2006042901364.html.