The Five Worst Insurance Companies in the U.S.A.
According to a report released by the American Association for Justice, a group of lawyers, there are five insurance agencies in particular that have misled policy holders, and acted unscrupulously to benefit their shareholders at the expense of those with their policies. Here is a list of the five worst insurance companies in America, and the practices that have earned them the rank.
1. All State Insurance - All State has been criticized multiple times for disreputable practices like low balling offers to cover medical expenses. Those who accept these low payments are often left accountable for far more of the bill than they can afford, and those that do not accept are forced to face a team of litigators intent on making sure that their claim is denied. Often proceedings are stretched out as long as possible, in the hopes that the claimant will simply give up. During hurricane Katrina, Allstate had more claims filed against it than any other company.
2. Unum - In 2005, when the state of California's Department of Insurance investigated Unum, they found numerous accounts of fraud, including falsified medical reports and other documents. Unum, a long term disability insurance provider has a long history of denying and delaying legitimate claims, and despite many slaps on the wrist, show no signs of changing their attitude.
3. AIG - AIG is a company so notorious that they had to rebrand themselves under a new name. But even before they were infamous, AIG was well known for claims handling abuses, excessive underwriting, and unnecessary price increases when other companies were lowering their rates. AIG is unashamedly opportunistic, even taking opportunities to prep employees on taking advantage of rising insurance rates after 9/11.
4. State Farm - During Hurricane Katrina, State Farm was accused of fraudulent documentation on several occasions, and often hired engineers to support claims that damages from the storm were caused by water rather than wind damage, thus freeing State Farm of payment obligations. They have a well documented history of deny and delay practices in dealing with personal property claims.
5. Conseco - Conseco is perhaps the most nefarious of insurance companies that delay claims, particularly because they offer primarily end of life insurance to the elderly. Conseco is well known for delaying valid claims, simply because they know that given enough time their policy holders will simply die.
