Examples of Bad Faith – Farmers Insurance
At Surrano Law Offices, we know what insurance truly is meant to do. It is there to protect you when death, destruction, or natural disasters find their way into your life. Unfortunately, not all insurance companies believe the same thing. Every insurance company has good agents, but some are simply out to get a paycheck.
As a result, they pay you as little as they can get away with, leaving you with mounting bills and debt it could take years to pay off. If you have had an experience like this, you can file a bad faith claim with Surrano. First, though, it pays to know what bad faith looks like and who may be guilty.
Examples of Bad Faith at Farmers
Farmers Insurance is a popular home, auto, and renters’ insurance company that promises to cover every possible home-related disaster. Its commercials often show fictitious homeowners going through odd or downright crazy circumstances like a giant snowball crushing their roof or car. The homeowners then stand around looking befuddled, wondering if they are covered. An actor playing an insurance agent assures the homeowners they are covered, and viewers are meant to think the problem is solved.
However, Farmers Insurance has continually been guilty of bad faith and engaging in unfair business practices because it benefits them more to take care of investors rather than clients. Many attorneys, including those at Surrano, have dealt with bad faith cases from this company. Examples of its practices include:
- Denying an insurance claim without full investigation – for example, mere days after receiving it.
- Cutting corners on investigations, often called a “one and done” policy. Billed to clients as a way to keep insurance companies from tying up claims in months of negotiations, it often results in sloppy case management.
- Encouraging case managers to reduce claim expenses or try to get clients to settle for less money than they should receive.
Additionally, because Farmers is the parent company of several other small insurance companies, it has a vested interest in keeping claim rates low or nonexistent so it can pay the smaller companies’ employees. Because Farmers parents so many other companies, you may file a claim with one company, such as the Foremost Insurance Group or Farmers Financial Solutions, LLC, but end up being referred to the larger company when trying to claim needed funds. This can take months of negotiations, phone calls, emails, and headaches to sort out.
How You Can Fight Back
Over the years, Farmers Insurance has been accused of engaging in bad faith practices in several states. Accusations range from filing one claim but not the other when a husband and wife had two relevant policies to age and gender discrimination. However, the findings of one lawsuit will not guarantee your bad faith claim will be held up in court. To win a bad faith case, you must collect current, pertinent evidence and know other examples of the practice. Examples of general bad faith include:
- Not acknowledging or replying to your claim. Do not let emails or phone messages sit indefinitely; call or email back. If you are ignored, take note.
- Altering policies without notice and attempting to settle claims based on changes you were not made aware of.
- Not informing you of arbitration or appeals policies.
- Requesting excessive or irrelevant documentation before agreeing to settle claims.
- Intentionally misrepresenting claims to investors or company benefit.
If you have been a victim of bad faith, you do have options. You can make an appointment to consult with Surrano attorneys today. In the meantime, we recommend filing a complaint. You should familiarize yourself with the rights of the insured, either online or with your attorney.