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11-27-2007, 11:32 PM #1
- Join Date
- Dec 2004
- Arlington, Texas, United States
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N Dakota fines Farmers Insurance $750K
WOW, that's a big fine.
North Dakota's Insurance Commissionier smacked Farmers Insurance with a $750,000 fine because of their horribly unethical business practices! They only do $19 million in auto insurance in the state, so that like getting a fine of nearly 4% of their total business in a year. That's a lot.
Read the whole story here. Notice any similarities with how they treated me? http://www.nd.gov/ndins/communicatio...e.asp?PRID=117
The exam report describes incentive programs and slogans, such as the "Bring Back a Billion" campaign, which encouraged employees to work to rebuild surplus and utilized "pledges" that employees signed. Also detailed are company action plans that set goals that were unfair and arbitrary. For example, examiners found that company forms included goals that bodily injury claims be settled within a predetermined range rather than on each claim's merits. In addition, Farmers instituted a goal to close a set percentage of claims without payment.
The Department orders:
- That Farmers eliminate all goals or incentive plans that utilize goals relating to settling claims within certain ranges in the evaluation of, determination of, compensation for, or the training of claims settlement persons. "Goals" means fixed targets and benchmarks which do not focus solely on the nature of the individual claims handled by the individual claims settlement personnel;
- That Farmers emphasize in training programs for newly hired claims settlement personnel the importance of evaluating each claim on its own merit and neither underpaying nor overpaying claims;
- That Farmers notify existing claims settlement personnel that the role of incentive programs is to reward exemplary performance and achievement of Farmers’ goals, and that one of Farmers’ goals is to pay the amount due on all claims as quickly, fairly and efficiently as possible.
Last edited by ChevyFan; 11-28-2007 at 09:08 AM.
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07-23-2010, 01:32 AM #2
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- Jul 2010
hey its a good approach............
North Dakota's Insurance Commissionier doing a great job....
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