farmers insurance

The Farmers Insurance Group of Companies was founded in 1928 by Thomas E. Leavey and John C. Tyler as the Farmers Insurance Exchange in Los Angeles, CA, United States. The company started out offering only automobile insurance but home and commercial insurance was added as the company grew. Farmers Group, Inc., is a provider of insurance management services and a holding company. Farmers Group, Inc., acting under the "dba" Farmers Underwriters Association, and its wholly-owned subsidiaries, Truck Underwriters Association and Fire Underwriters Association, they act as the attorneys-in-fact for three reciprocals or inter-insurance exchanges - Farmers Insurance Exchange, Truck Insurance Exchange and Fire Insurance Exchange. A reciprocal or inter-insurance exchange consist of policyholders (subscribers) who exchange contracts with one another so that they can provide themselves with insurance against certain losses. In addition, Farmers Group, Inc., is a life insurance holding company of the Farmers New World Life Insurance Company. Farmers Group, Inc. is the country's third-largest writer of both private passenger automobile and homeowners insurance.

Farmers Group, Inc. was purchased by B.A.T. Industries p.l.c., London, England (see British American Tobacco) in December 1988 following a hostile takeover attempt (see New York Times, January 21, 1988 and New York Times, May 28, 1988) and became part of the B.A.T. Industries financial services division. In September 1998, the Zurich Financial Services Group was created from the merger with the financial services business of B.A.T. Industries p.l.c. Through a dual holding structure, Zurich Financial Services was owned 57% by Swiss-quoted Zurich Allied AG, representing the former shareholders of Zurich Insurance Company, and 43% by London-listed Allied Zurich p.l.c., the de-merged financial services interests of B.A.T. Industries p.l.c.

In October 2000, the Zurich structure was simplified and unified under a single Swiss holding company. Allied Zurich and Zurich Allied shares were replaced by shares of the newly incorporated Zurich Financial Services, with a primary listing in Zurich (stock symbol: ZURN) and a secondary listing in London (ticker symbol: ZURN.L).

Farmers Insurance Group of Companies is based in Los Angeles, California, and operates in 41 states across the country through the efforts of approximately 18,000 employees and services more than 15 million customers. In March 2000, the Farmers Insurance Group of Companies acquired/merged with Foremost Corporation (Foremost Insurance Company) located in Grand Rapids, Michigan. Foremost is the leading writer of manufactured homes and a prominent insurer of recreational vehicles and other specialty lines.

Praise

• Farmers ranks 4th behind Allstate, State Farm, and Progressive in auto insurance net written premium.

• Farmers Insurance was the first auto insurer in the United States to offer a discount for owners of hybrid vehicles. [1]

• The Farmers Insurance Group HelpPoint was recognized as a certified Call Center for providing an Outstanding Customer Service experience. This was recognized by industry leader J.D. Power and Associates. [2]

• Farmers Insurance Group has an A (Excellent) rating from industry analyst A.M. Best. This is noted because it is "...a dominant personal lines insurer with strong brand name recognition and the ability to provide the overall organization (Zurich) with cross-marketing opportunities and best practices expertise." [3]

Criticism

In 2003, Consumer Reports rated Farmers Insurance Homeowners "Worse" for both "Problems with Claim" and "Delayed Payments". In March 2006, Consumer Reports rated Farmers Insurance one of the “Poorest Performers” amongst 27 insurance companies in terms of paying off (auto) claims in 30 days or less.

A number of consumers, agents, and claims adjusters have had disagreements with Farmers Insurance. Here are some of the more popular cases that have made it into the news.

• The "Ethel Adams Law" is named after a woman who was injured in March 2005 when her car was hit in an incident of road rage by a pickup truck driven by Michael R. Testa."..."After the accident, Adams' insurer, Farmers Insurance, at first said it wouldn't pay Adams' claims because it said Testa was trying to cause a wreck and the crash was not an accident."..."Ethel Adams' insurance carrier tried to apply an imaginative interpretation of the law to keep from paying her claim. This new law bears her name with the hope that no other innocent insured will have to go through the nightmare Ethel experienced," said Insurance Commissioner Mike Kreidler, in a statement."
• Claims Adjusters: In September 2004, Farmers Insurance claims adjusters won a lawsuit, Bell v. Farmers Insurance Exchange, which rewarded them for all their overdue overtime labor. At the time it was largest overtime pay class action ever tried in the United States.
• Insured Consumer: The Ballard v. Farmers Insurance case is one of the most prominent mold claim cases against an insurer. Ballard alleged that Farmers Insurance failed to adequately and swiftly cover repairs for a water leak, allowing the toxic mold Stachybotrys chartarum to overrun their home and damage their family's health. However, the Texas Third District Court of Appeals rejected the jury's findings that Farmers committed any fraud and threw out the punitive damages that were originally assesed. Farmers only had to pay for the actual damages.
• An insured accused Farmers Insurance of fraudulently using a program called Colossus to lowball pain and suffering. Robert Dietz and Christy Klein, former Farmers claims adjusters, stated "There's so much pressure on you to settle for the least amount possible". Dietz and Klein claimed Farmers Insurance would offer monthly incentives to pay less. Typical prizes were $25 gift certificates or a pizza party for an adjuster and her team.

External links

• Farmers Insurance Group Home Page
• United Farmers Agents Association, professional association for Farmers Agents.

Critical Sites

• A collection of ratings, articles, lawsuits, allegations and complaints critical of Farmers Insurance