Top Ten Worst Insurers in America

When you purchase an insurance policy and pay your premiums, your insurance company owes you a duty of good faith and fair dealing. If you get injured, insurance acts as a safety net to protect you and your family. Yet, insurance companies are also in it for profit. For some insurance companies, that is their main objective. There then becomes a conflict of interest between the insurance company and the policy holder.

Insurance companies make less money when they pay out claims for their policy holders. Some insurance companies will find ways to deny claims. A new report conducted by the American Association of Justice lists the top ten worst insurance companies for consumers.

According to this report, the top ten worst companies in order are:

  • Allstate
  • Unum
  • AIG
  • State Farm
  • Conseco
  • Well Point
  • Farmers
  • UnitedHealth
  • Torchmark Liberty Mutual

The report was based on SEC records, FBI documents, court records and testimony from current and former employees of the named companies. According to the report, these companies use tactics like rewarding claims reps for denying, and delaying customer claims. The report also notes that several of the companies hired consulting firms to increase their profits. According to the report, the consulting firms recommended the companies find ways to reject claims because the more that’s paid out in insurance claims, the less profit the company makes.

How Can I Protect Myself from Insurance Tricks?

Though this report reveals some disturbing tactics used by insurance companies, it is important to understand that not every denied claim is a result of bad faith or unfair dealing. A bad faith claim arises when the insurance company is unreasonable in their dealings with a policy holder’s claim. Such unreasonable actions can include denying a claim based on inadequate investigations, prolonged delays in paying a claim, requiring a policy holder to fulfill requirements that aren’t in the policy, and offering a policy holder an unreasonable or inadequate payout.

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