Recent CNN investigation points out insurance claims abuse
Posted Sunday, February 11, 2007 by Ed Harper
Recently, CNN and their investigation into auto accident claims have proven several insurance companies abuse of the claims process. By denying and and refusing to pay legitimate claims for medical bills and wage loss, State Farm Insurance and Allstate Insurance have forced many injured persons into court to litigate their claims. Jim Mathis, a former Washington claims adjuster in Washington when asked to describe the claims denial strategy to the CNN reporter:
JIM MATHIS: It really came down to three basic elements. A position of delay. A position of denying a claim. And then ultimately, of course, defending that claim that you denied.
GRIFFEN: The three D’s?
JIM MATHIS: Exactly.
GRIFFIN: Jim Mathis is a former insurance company insider who now testifies against insurance companies in court.
MATHIS: And the profits are huge. Profits are good. And as long as the public allows this to occur, the insurance companies will get richer and people will not get a fair and reasonable settlement, period.
Corporate greed should discouraged and should be watched closely. The insurance industry wants to prove a point and drive claims down. They set arbitrary monetary thresholds for the amount of property damage. In other words if the property damage estimate is below this arbitrary amount, or if the property damage does not look bad in a photo they will force you to court. The CNN story points out it is not a question of profit for the insurance companies but how much profit.
According to Anderson Cooper You might think all the savings would mean lower premiums for drivers. Well, guess again. The Insurance Information Institute says auto insurance rates have actually gone up 30 percent over the 10 years since this went into effect.
See Anderson Cooper’s blog on this http://www.cnn.com/CNN/Programs/anderson.cooper.360/blog/
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