On January 15 this space posted a report on Allstate, the worst of the ten worst insurance companies. The American Association for Justice (the new name for the Trial Lawyers Association) had done a study of services provided by insurance companies.
The second-worst insurance company was found to be Unum, headquartered in Chattanooga, TN. Unum pulled in profits of $679 million in 2007 and has assets worth $52.4 billion. Their previous CEO was forced out in 2003 amid arguments of the company’s claim-handling policies.
- Employees reported that they had been instructed to deny claims to meet cost-saving goals
- Internal memos documented a switch from “a claims-payment to a claim-management approach” for which the “return [was] expected to be substantial”
- The CEO took a $17 million severance packet with him
In 2005 Unum signed a settlement with insurance commissioners from 48 states in which they agreed to re-open over 200,000 claims and pay out $15 million. Charles Grassley (R-Iowa) has asked the federal Government Accountability Office (GAO) to investigate Unum’s continuing violations of regulations and has written to the current CEO demanding answers.
The Other Worst Insurance Companies
- State Farm
- Liberty Mutual
Whether or not one of the above is your insurance company, please contact us if you have been dealing with insurance bad faith. Laws governing bad faith insurance frequently change and they vary between states. Some legal advice and possibly representation will be very helpful for you and will release you from fruitless phone calls and endless paperwork.
Please contact our insurance bad faith attorneys today to schedule a free consultation and case evaluation.