Davis Law Group, P.S.

Mishandling Claims - Farmers - 7th Worst Insurance Company

Farmers is the number seven Worst Insurance Company in America because it is one of the most poorly ranked in homeowner’s satisfaction surveys and their employees are given incentives to meet the lowest payment goals. Farmers’ parent company, Zurich Financial, just paid millions to settle a bid-rigging and price-fixing scandal, and they systemically place profits over policyholders.

Headquarters: Los Angeles, CA

Profits: Zurich Financial - $5.6 billion

Assets: $387.7 billion

• Consistently ranks lowest in homeowners or auto insurance satisfaction surveys from the likes of JD Powers and Consumer Reports.
• Farmers’ parent company, Zurich Financial Services just paid nearly half a billion dollars to settle bid-rigging and price-fixing cases.
• Their anti-competitive scheme was put in place to hide their ultimate agenda: artificially inflating premiums and paying improper broker commissions.
• Denied Washington State 60-year-old policyholder Ethel Adams after she was in a coma and confined to a wheelchair as a result of a car accident stating that the driver at fault acted intentionally. Despite causing a general outcry, and policyholders threatening to boycott, Farmers only caved when the Washington State Insurance commissioner threatened to take legal action.
• Testimonies from former employees as well as internal company documents prove that Farmers’ systematically places profits over policyholders.
• Has faced lawsuits from North Dakota, Texas, and Oklahoma for illegal claims handling. - Adjusters who reach low payments and dissuade claimants from retaining attorneys are rewarded with incentives like gift certificates and pizza parties.
• The company has been involved in multiple scandals involving refusal to pay the expected amounts to policyholders and mishandling claims that has resulted in Farmer’s paying multi-millions in administrative fines.