Toll Free: 1.800.4.Accident | Local: 206.727.4000

Legal Action Against American Family Insurance

Davis Law Group




American Family Insurance: Company Profile

American Family Insurance (aka AmFam) is a private mutual company that focuses on property, casualty and auto insurance, but also offers commercial insurance, life, health, and homeowners coverage, as well as investment and retirement-planning products. A Fortune 500 company, its revenues for 2008 were over $6.7 billion.

American Family Insurance's history began on October 3, 1927, when insurance salesman Herman Wittwer opened the doors of Farmers Mutual Insurance Company in Madison, Wisconsin (not to be confused with the Farmers Insurance Group). At the time, the company's only product was auto insurance and its target market was farmers. Wittwer believed farmers presented lower risks than city drivers because they drove less often and not at all in the winter.

Over the years, Farmers Mutual expanded its market and product line to meet the changing needs of its customers. In 1963, Farmers Mutual changed its name to American Family Mutual Insurance Company to reflect its broader customer base.

Lawsuits Brought Against American Family Insurance

Were you in a serious accident in which you or the at-fault were covered by a major insurance companys such as American Family Insurance? If you must take legal action, it is critical to research how other people and organizations have successfully navigated insurance claims negotiations and settlements with specific insurance companies in order to achieve a just settlement or court outcome. Substantial research will help you in avoid mistakes others have made when legally dealing with insurance companies. Research can provide insight to successful courses of action that can affect the monetary value of your settlement. It also helps highlight crucial legal strategies and avenues that have historically helped win lawsuits against major insurance companies such as American Family Insurance.

Insurance companies are notorious for stalling the release of settlement funds until the last possible second. This questionable practice is implemented by an extremely high percentage of insurance companies. It is designed as both a money-making and a money-preserving technique. Major insurance companies usually have access to tens of billions of dollars due to high volume revenue and cash flow. Similar to banks, they invest these funds in order to amplify their profits. Even if they are required to pay a settlement, they will hold the money as long as legally possible in a leveraged effort to increase their own profits through the interest they earn on their investments.

In addition to delaying the disbursement of settlement funds, most insurance companies implement many of the following strategies to cut costs and generate profit:

• Nickel and dime smaller individual clients with various charges with the knowledge they cannot afford to investigate their legal options.
• Present clients with a very small initial settlement offer, as many policy holders do not realize they do not have to accept the insurance company’s first offer.
• Wait until the last possible week to disperse funds, as some negotiations can last well over a year.
• If you have sustained personal injuries that will be permanent, it is important to use an expert trial attorney.

Cases Involving American Family Insurance:

What does the term insurance "bad faith" mean? (View Full Article – Davis Law Group)

Further Research:

Davis Law Group Library – American Family

Links:

What does the term insurance "bad faith" mean?
What Are Some Examples of Bad Faith Conduct?
If my insurance company denies my claim, do I have any rights?

2101 Fourth Avenue, Suite 630
Seattle, WA 98121
Phone: (206) 727-4000
Fax: (206) 727-4001

 

Connect with us or read reviews at any of the social media sites:

Davis Law Group and attorney Chris Davis has been featured in news reports on these local and national news sources:

Blog

Insurance Coverage Disputes

• Class Action Lawsuit Against Farmers Insurance Settles Nov. 29

View All

Videos

Insurance Coverage Disputes:

• FYI: Insurance bad faith claims in ...
  

Watch All

• Case Results
• Blog
• Firm Library
• FAQs
• Videos
• Resources