21st Century Insurance Gets Worst Rating from Temkin Group

According to the 2015 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers, 21st Century Insurance had the WORST ratings for the 5th year in a row!  Five years in a row?  Is it a coincidence that Farmers Insurance Group bought temkin-group-logo21st Century in 2009?  It didn’t take them long to run this business into the ground in regards to customer service and experience.  21st Century Insurance was also one of the three companies that declined by most percentage-points between 2014 and 2015!!

To generate these ratings, Temkin Group asked 10,000 U.S. consumers to evaluate their recent experiences with a company across three dimensions: success (can you do what you want to do?), effort (how easy is it to work with the company?), and emotion (how do you feel about the interactions?). Temkin Group then averaged these three scores to produce each company’s Temkin Experience Rating.

Source: http://www.prnewswire.com/

Farmers Insurance Reviews 2015

Farmers Insurance rated worst, as usual.  -Admin

“We have had Farmers car insurance and roadside assistant. My husband’s was travelling from LA to bay area and car broke and brakes failed on I5 north near grapevine while coming down on the mountain. Even the emergency brakes did not work. I called Farmers insurance and told about the situation. They kept asking questions for 1 hour and very slow in response. For example on telling what exit I am, the person was not able to locate the exit while I found online and told where the exist is exactly.
Car is out of control and she is asking where we want to take the car…. On telling nearest car repair shop, she took 10 minutes to find the nearest shop and again did not find the info that the shop is opened or closed since it was Sunday evening. I told, “Why don’t you send the roadside assistance” and meanwhile we decide where to take the car. She did not agree and asked me harassing questions for more than an hour. Finally my husband hit the car against the curb/divider again and again and stopped it.
The roadside assistance came after 3 hours. It was just very horrible, very frustrating. They do not understand the situation… They understand only money taking and maybe wait till the car does meet an accident so they can put fault on drivers. Very horrible. We were so scared, afraid and frustrated that day.. Cannot tell. Never go with Farmers.” Jan 2015

“I had my car under a canopy carport and a very bad windstorm came through the the carport, damaged my vehicle. I went to a Farmers Insurance Reviews 2015reputable auto body repair shop and received an estimate for $3,600. The Farmers adjuster came to my house and said that the damage wasn’t that severe and left me with a check for $1,400. I thought I had a $500 deductible, not $2,200. I’m very upset about this and I’m considering getting a lawyer. This guy doesn’t own or operate an auto body repair shop, but he thinks he’s qualified to disagree with the professionals.” Jan 2015

“Agent was sent email on new vehicle didn’t issue auto insurance until 3 weeks later but no backdated to the date of email. I forwarded the email from my sent box.. He said “I won’t accept it”??????? So how do I prove he accepted a later email on another car. How can I trust the “Insurance Agent” misplace emails or phone calls? Your “Vision Statement” seems to be just words. The Credit Union charged me for insurance which I had already and paid in full months earlier. It cost me $1710.00 plus interest. Besides agent has started insulting me because I changed insurance companies due to him not honoring the email sent to him but has accepted others prior and afterwards. Maybe this will get someone to help.” Jan 2015

“I was in a car accident while sitting at a red light. A guy hit me full speed and pushed me up under the car in front of me. I was hurt very badly in the accident and Farmers took me through a year’s worth of fighting sending me to their Dr where I had to get undressed. Then I had to go and sit for an hour while their attorney interrogated me for their client’s negligence. At the end of the day all I got was my hospital bills paid and 1000.00. I live in Oklahoma.” Jan 2015

“My daughter was hit by an impaired driver. Several physical therapy visits followed. The police report clearly identified the other driver as the at fault driver. Farmers immediately paid for the car loss at about 60% of the blue book value. They refused to pay the very low medical costs. We hired an attorney too late… our fault. Even our attorney lamented that Farmers is the worst insurance company in America. I had policies with them for more than six vehicles and they always refused claims unless I complained to my local rep. This company is pathetic and does not deserve to operate. AVOID THIS COMPANY AT ALL COSTS!”

“I had a 21st insurance policy for years, but they told me that they couldn’t cover my trucks now that they were work vehicles with my personal vehicle and I had to use Farmers to get coverage. Farmers insisted that I had to have separate policies and my insurance cost per year almost doubled (covering the same vehicles). I asked my GL insurer if they could give me a quote and not only could they include both personal and work vehicles on one policy it was about 3/4 of the cost. Naturally I switched over. With 21st if I was late in payment (contracting is not a steady check), they would terminate coverage, but farmers also sent a bill for additional cost and when I went to pay them 27 days after due date they already sent it to collections. Farmers as an insurer has been my worse experience with an insurance company I have dealt with in my 30 years of driving.”

“It’s very simple. At Farmers Insurance they will sweet talk you to hell. One of the worst I ever seen, for small fender bender, I mean Small. They will act like they are CIA agents. Every time you call them this is what you get: “WE ARE STILL INVESTIGATING THE ACCIDENT” (for almost 30 days). THEN IF THEY FIND THEM SELF CORNERED, SIMPLY THEY WILL CALL YOU RACIST. If you ask them “how long this investigation of yours will take”, this was what I got back as answer from Adjuster: “you are asking me to predict the future. Are you crazy, it takes what it takes.”

“I had a head-on collision and sustained permanent nerve damage to my neck. My UM policy limit was $100K and they offered $3k for pain and suffering. I had to sue my own insurance company to get a settlement. My agent took money from me for 22 years and when I really needed them, they said “sorry we can’t help you.” Do not think that low premiums will save you money in the long run. Look at the payout stats online for different companies before you buy. I have AMICA now and they have a good payout rating. That’s what insurance is for–to make it right when you need it. When you have a bad accident, it’s too late to expect all those promises they feed you at Farmers to be true. They aren’t! NEVER use Farmers.”

 

Source: http://www.consumeraffairs.com/

Farmers Insurance Agents Sue Carrier Over Contracts, Taking Client Info

A group of Farmers Group Inc. agents have filed a lawsuit in Los Angeles Superior Court alleging the Los Angeles, Calif.-based carrier has undercut them by sharing their data with a competing subsidiary and several contract violations.

The United Farmers Agents Association alleges in its suit that the U.S. subsidiary of Zurich Financial Services in 2009 “began orchestrating and engaging in a series of improper actions” at the expense of Farmers agents.

Those alleged actions include Farmers unilaterally changing the terms of the contracts with its agents, the company using client data gathered by Farmers agents to undercut them and terminating agents through a purposely rigorous new set of standards to take away their books of business and give them to agents making lower commissions.

“Under this  scheme,  Farmers  utilizes  information  and  data  about  the Agents’ policyholders – information and data acquired by the Agents through Agents’ efforts – to directly solicit those Agents’ existing policyholders with less expensive insurance policies sold through a subsidiary of the exchanges,” the suit states.

The fallout between Farmers and its agents seems to have started in 2009 with Farmers purchase of direct writer 21st Century Insurance Group. Following that buyout, Farmers unveiled a series of performance programs subjecting agents to new standards, including production minimums, quoting requirements and office hours, according to the suit.

In 2009 Farmers introduced a modified version of the contract that pertains to agents who entered the contract after that date. That same year Farmers acquired 21st Century, a direct writer of primarily automobile and homeowners’ insurance.

Farmers completed the acquisition of 100 percent of AIG’s U.S. Personal Auto Group, which included 21st Century Insurance, in July 2009. In addition to 21st Century Insurance, the acquisition included the former AIG Direct business and Agency Auto business. The purchase price amounted to approximately $1.9 billion.

Unlike the agent-based model, 21st Century does not rely on agents to sell its insurance products, instead it markets and writes policies directly to consumers.

“By employing a direct writer approach, 21st Century can offer insurance at low  rates  which  undercut  the  rates  being  charged  to  the  Agents’  own customers  and policyholders,” the suit states.

Following the purchase of Century 21, Farmers began using applicant and policyholder data from agents under contract with Farmers and disseminating it to 21st Century and other Farmers-held companies that were competitors of its own agents, according to the suit.

“In both cases, Farmers, through 21st Century or another competitor, would then typically offer insurance policies to the Agents’ policyholders and prospective policyholders  at lower prices than those which Agents could offer,” the suit states.

“These new programs were unlike any past programs, in that they impose explicit  production  minimums  upon  Agents  without  their  consent;  irrespective  of  an Agent’s past performance; and without regard for whether an Agent even markets and sells the particular  type(s) of insurance required  to be marketed  and sold under  the various programs,” the suit states.

UFAA President Tom Schrader declined to discuss the suit in detail, citing his fears that bad publicity would impact Farmers’ clients and agents negatively.

“This is a fundamental disagreement between the company and the agents and we prefer to handle it in-house without airing our dirty laundry,” Schrader said.

Farmers spokesman Mark Toohey offered the following statement:

“Farmers Insurance strongly disagrees with the issues raised in this lawsuit. During our nearly 85-years of doing business in the United States, Farmers Insurance has taken great pride in the strong relationship we have developed with our agents and we look forward to the future.”

The suit continues: “Farmers has used and continues to use these programs as a basis for taking disciplinary and other action against Agents, including termination, in violation of the contracts, which do not contain any provision requiring Agents to meet performance standards of any kind.”

According to the suit, Farmers has also taken action against agents on the basis of the location and type of offices being maintained by agents.

UFAA is a not-for-profit professional trade association, and is a member of the Coalition of Exclusive Agents Associations Inc., a national organization of exclusive agent associations whose companies insure over 60 million families. UFAA describes itself as a voluntary membership  organization  with the purpose of improving working conditions for Farmers insurance agents.

Each member of UFAA represented in the suit has a contract with Farmers. Under the contract agents serve as independent contractors of Farmers and must extend the right of first refusal to Farmers to bind insurance coverage on behalf of applicants procured by the agents.

Aside from sharing agents’ clientele information and contract violations, the suit alleges that Farmers has been terminating some agents for failing to meet the new guidelines and taking their books of business, which under contract is owned by Farmers, and using those books of business to provide seed accounts to newly signed agents earning a smaller commission.

The suit further alleges that the new performance standards imposed upon agents by Farmers are designed to be difficult to meet and they are being used as a pretext for terminating agents.

Aside from setting daily minimums for agents to contact, quote and present insurance products, the new program often also requires agents to market or sell products they have never sold before, according to the suit.

The suit seeks declaratory relief and seeks a jury trial. No trial date has been set. Neither Farmers parent Zurich nor 21st Century are named as parties in the suit.

Click here to read a copy of the lawsuit online.

Source : http://www.insurancejournal.com

Auto Shops’ Suit Crashes In Insurer Antitrust MDL

Law360, Los Angeles (January 21, 2015, 8:35 PM ET) — A Florida federal judge on Wednesday gutted a suit in multidistrict litigation accusing State Farm Mutual Automobile Insurance Co. and other insurance providers of conspiring to manipulate car repair costs to reduce their payments, potentially spelling doom for about 20 additional cases.
In dismissing most of the claims in the instant Florida federal suit without prejudice, U.S. District Judge Gregory A. Presnell decided the auto body shops failed to state a claim, including failing to meet the burden for two claims that alleged Sherman Act violations.

Plaintiffs claimed the insurers utilized business agreements with the shops to exert control over their operations and artificially depress car repair costs.

But Judge Presnell decided on Wednesday that the plaintiffs hadn’t sufficiently detailed the alleged agreements. Moreover, the fact that some of the defendants showed an unwillingness to pay more than State Farm had to pay doesn’t by itself raise Sherman Act concerns, according to the judge.

“It is not illegal for a party to decide it is unwilling to pay a higher hourly rate than its competitors have to pay, and the fact that a number of the defendants made statements to that effect does not tip the scales toward illegality,” Wednesday’s order said.

Judge Presnell also found no viable claim that any defendant refused to allow any of its insureds to obtain a repair from a shop that asked for higher prices, or refused to pay for repairs performed at such a shop, and thus tossed another Sherman Act claim.

In addition to price-fixing and boycotting, plaintiffs accused the insurance companies of breaking various state laws by not sufficiently compensating the body shops for work performed, by illegally steering business away from their respective businesses and by illegally suppressing labor rates within the industry.

While there were slight variations among many of the complaints over certain state-law-based alternative grounds for recovery, the core factual allegations in many of the actions were the same, which led to last year’s consolidation. Thus, Judge Presnell’s Wednesday decision in the instant case may indicate that the similar claims in about 20 other cases in the MDL could fail.

The judge tossed plaintiffs’ quantum meruit, unjust enrichment, tortious interference with business relations and conversion claims without prejudice. He dismissed their quasi-estoppel claim with prejudice.

David L. Yohai of Weil Gotshal & Manges LLP — which is representing 21st Century Centennial Insurance Co., Bristol West Insurance Co. and Farmers Insurance Group — told Law360 on Wednesday that they are pleased with the court’s decision.

“Hopefully, the plaintiffs will see the weakness in their pleadings and not prolong this costly process and case which they clearly do not have the facts to support,” Yohai said.

State Farm Public Affairs Director Phil Supple told Law360 that they are pleased with the ruling and that the company’s lawyers are reviewing the order.

An attorney for the repair shops didn’t immediately respond to a request for comment late Wednesday.

The repair shops are represented by John Arthur Eaves Jr. of Eaves Law Firm, among others.

21st Century Centennial Insurance Co., Bristol West Insurance Co. and Farmers Insurance Group are represented by David L. Yohai of Weil Gotshal & Manges LLP, among others. State Farm is represented by Michael P. Kenny of Alston & Bird LLP and Michael L. McCluggage of Eimer Stahl LLP, among others. Allstate is represented by Richard L. Fenton of Dentons US LLP, among others.

The case is A&E Auto Body Inc. et al. v. 21st Century Centennial Insurance Co. et al., case number 6:14-cv-00310, in the U.S. District Court for the Middle District of Florida, Orlando Division.

Source: http://www.law360.com

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