Dear Friends,Below are two letters I recently received from a Senior Claims Representative at Allstate Insurance, testifying to "claim stealing", racial quotas, and massive fraud and corruption at that company, followed by our own website precis' detailing purposeful "targeting" of the "weak" (minorities, women, widows, the poor) for lowballing, stalling, and denial of insurance claims for no reason. People from all over the nation are coming forward to us, as our Website details this information, whose implications may rival or exceed Prudential's "churning" debacle of the eighties. After this is a more general precis of this company's wrongdoing, as described on our site. Come and examine the evidence for yourself at:
http://www.geocities.com/WallStreet/Floor/7056/
Begin First Letter ---
Dear Paula,
I am retired (disability) from Allstate Insurance Company. I started with them in 1975 in St Pete, Fl and then worked rest of my career in Atlanta. I was a "Senior Claims Representative". Many times I was chastised for doing the right thing. Lots of encouragement from upper management to "steal the claim" (their words). But my story is more horrible than those generalizations.
I won every major award the company offered in the 20 years I worked. On December the 12th 1992 I fell in the Allstate office and suffered multiple injuries including knees, back, neck and a closed head injury. I was knocked out for a short period of time as I went headfirst into steel file cabinets. This accident was witnessed by one of the claim managers in the office. When I attempted to get medical treatment Allstate cut me off. I had to hire an attorney and fought them over two years before the Workers Comp Board in Atlanta forced them to allow me to have both knees operated on for the torn ligaments. The orthopaedic doctor even dictated a letter informing Allstate because of their delay I now have debilitating osteoarthritis and will have to have both knee fully replaced at some point in the near future.
After having arbitration meetings where the managers lied about the accident and having the case scheduled for a full blown Hearing I was able to obtain information from fellow employees as to their (Allstate) intent to make an "example" out of me. I was able to use this information to encourage a settlement out of them. Based on the fact I was totally disabled and qualified for social security benefits Allstate was forced to allow me to retire. I have never been treated so shabbily in my life. And I was an employee who was rated "Superior" for twenty years. If these folks can treat employees like that, why is it any surprise they treat their claimants like they do? They are bullies and prey upon the uninformed. But for my knowledge, I was able to beat them at their own game. You would be shocked to know how much legal expense they incurred fighting a clearly compensable claim witnessed by no other than the claims manager. Keep up the good work. I have sent your website to at least four other ex-Allstate employees who have their own stories. As I am still involved with their retiree service center I would appreciate you not using my real name. Thanks. {name deleted at request} (Senior Claims Representative 1975-1995).
Begin Second Letter ---
Paula: I built a cabin up on Buck Creek about 17 years ago. Have been up here full time since spring of 93. We did go to St Pete for three winters but sat the winter out on the creek last winter. We just finished having a house built off Baird Cove Road (1 1/2 miles from downtown) and moved here end of May.
I must confess I worked for some great folks but there was a pervasive mentality coming out of Chicago and/or Northbrook, IL. I was with the commercial claims department and cut my teeth handling the State of Florida from 75-79. Took a transfer to Atlanta in 79 to get closer to God's country here in Macon County.
One of the men I worked for for 13 years was a wonderful man. He had been with Allstate since late 50's. At one time he told me Allstate would use codes to refer to blacks, etc. They used this tactic to decline homeowner's insurance to blacks, people who drank, people with bad credit, etc. When they got caught there were verbal instructions to destroy all their claims manuals as to operating procedures. The actual culprit is the simple fact upper management which usually means in Illinois got paid bonuses for keeping their claims ratios down. Good example is the recent IRS thing. Bonuses paid to employees who "collected" or "seized" more property. As human nature dictates, it was to upper management's financial benefit to seek loopholes or to encourage dragging of feet until the poor claimant was put into a position to settle for less than what the claim is worth or just plain gave up. You would be amazed as to some of the supervisors mentality. They more or less encouraged an upfront denial of claim and went from there. Claims adjusters were told to "control" the claimant. Another word they have exorcised from their manuals due to some court case somewhere. As to legal expenses or any other expense, the companies can use that as cost of doing business and, in fact, justify rate increases from the policyholders. No way an insurance company can lose! You just heard about sports utility owners and van owners are going to take a big hike in auto insurance rates because (get this) their vehicles damage smaller vehicles more. In essence, they are penalizing those whose vehicles are safer. In the 70's they raised rates because people were driving more small cars and were unsafe. You see. They get it both ways.
Luckily, I handled workers comp full time from about 1980 til I got hurt in 1992. It was more pleasurable for me as I could handle the claims based on state law and there weren't as many things Allstate could do to harass the claimants. I do know a lot of supervisors had their adjusters take the position the work comp claim was not compensable for various reason. Usually that forced the claimant to hire an attorney which then meant the attorney was wanting to "settle" so he or she could get their fee. I have had attorneys for the employees actually try to sell their client out. So it is not just the bad guys (Allstate) who are looking to line their pockets. I think all attorneys stink. Haven't dealt with one yet that wasn't looking to satisfy their own greed. Who draws up these policies? Lawyers. Who handles all the litigation? Lawyers. Therein is another big problem.
In the late 70's there was a push for affirmative action which, obviously, had some merit as the claims departments were a collection of white guys like me. Unfortunately, we have seen down the road that a lot of the minorities who were promoted have moved into upper management and a lot of them are absolutely dumber than stumps as to insurance, law, etc. They do understand those performance bonuses they receive when the claims payouts go down. I know you got the picture. They are extremely clever, devious, and commit not much to writing. In fact, the manuals they use today are written as to exonerate them from wrongdoing. They might encourage claims denials off record but when in court they point to their manuals and say, "See here. These are our rules and regulations". Bogus!
Don't get me going about insurance commissioners. At one time, Allstate was the biggest contributor to the campaign for the Florida Insurance Commissioner. Those beaurocrats also on the sleeze side and could care less about you and your insurance problems.
Should you persue legal action have your attorney request any and all copies, reports, lawsuits, claims, etc. as to bad faith on the company's fault. I saw how Allstate handled Class Action Lawsuits. They hired the Atlanta firm who was most prestigious and paid them $500/hour to actually bury the plaintiff and their attorney in legalese. When attorneys work on a contingency basis they can't afford to spend all day answering the interoggatories for one client and are usually keen to settle cheaply and quickly thereby screwing the claimant once again.
My fingers are killing me. I hate Allstate. In the office I worked in (Atlanta) we had almost 60 people at one time. I knew of only one person with any seniority who was insured with Allstate. I have been a State Farm customer for all these years. Don't like them either, but Allstate is Satan's partner! {name deleted at request}
My sources are available to the media, as permission is given. Although the above information is free for distribution, exact employment dates and locations should be masked, since this former employee fears retaliation -- and it would be easy to trace him with exact information.
End of Letters ---
If you are still unaware of out site, we have the following, in addition to the above new information:
Begin Website Precis ---
While looking into a problem of my own on the Internet, I was led into wider and wider avenues which caused me to beleive that the "churning" debacle of Prudential may not be the last story this decade of a major insurance carrier gone rogue.
Within a short time I became convinced that Allstate Insurance Company is intentionally delaying or illegally denying payment of claims, well beyond the statute of limitations, and thereby legally ripping off thousands of Americans to the tune of millions and millions of dollars. They also appear to be forcing all "uninsured motorist" claims into arbitration, at the cost of the insured. Both practices are in violation of the "bad faith" covenants in most states.
In addition, evidence we have uncovered clearly points to a systematic pattern to defraud those Allstate considers "powerless" to fight a claim denial or delay, such as the poor, recent widows, minorities, the uneducated, and the like. There is also evidence of other crimes by this company, from political influence peddling to postal fraud to strongarm tactics.
The nationwide generality of many of these practices can be verified at most county courthouses, as outlined below.
As part of my own experience, I submitted a claim to this carrier nearly two years ago, and have since only received varied and changing explanations for the delay in payment.
I went on the Internet to research this and discovered two websites whose owners had similar difficulties. They, in turn, had been sent much email from other claimants who had also suffered great delays in payment, along with various lies, tricks, and illegalities. This included letters from Allstate company employees which apparently verified claim-delay as a general practice. We have a letter from an attorney, along with his phone number, alluding to a massive defrauding of motorists.
Two of the website owners have gone to their county courthouses to look into this company and found hundreds of cases, delayed for years, for what appear to them to be spurious reasons. Far more delayed cases than would be expected as a percentage of market share. And those cases that were settled after very long intervals, were often for miniscule amounts which, after legal fees, may even represent a loss.
I started my own website, and have received similar email from people all over the country, who have not even sought legal assistance. A lawyer friend has warned me that these long delays, with excuses, may be a way of getting past the statute of limitations for filing a "bad faith" claim. At that point Allstate can act with virtual impunity, practicing bad faith legally and delaying for further years until the claimants simply give up or settle for very little. Judging by the letters I have received, many have.
It is my beleif that there is a widespread and purposeful pattern by this company of stalling claims. And that this especially occurs, in what seems an almost purposeful selection, with those who have little ability or knowledge to mount a legal challenge: the poor,widows, minorities, or anyone Allstate considers "weak". These people are stalled until they quit, settle for very little, or even die. And in those rare cases of full payment, Allstate has still earned millions on the float of the funds they owed for years but did not pay. I have contacted my elected representatives about this matter, but they appear disinterested. Although I suppose they would perk up a bit if I could offer campaign contributions as large as those lavished by insurance companies. Even some state insurance commissions appear to be very unreceptive, and large campaign contributions by Allstate to some of their races may have something to do with this.
Many of my informants are former or current Allstate employees, and you can read their testimony in the "horror story" link of my website. This company is guilty of Massive illegality, planned from the very top.
We also have testimony regarding many other forms of wrongdoing, some of which appear to be grossly illegal, along with news about class action suits soon to be filed regarding some of these matters. I realize the letters we have received are anecdotal, but county records are not. And I feel that these counties will not prove to be exceptional if this were to be researched further. In my opinion, this may be a problem of even greater scope than that of Prudential's. My story and that of others, along with links to other websites, can be found at Cyber Vigilante, at:
http://www.geocities.com/WallStreet/Floor/7056/
Since this is the Web I have had to use a bit of showmanship, but I beleive what I have is honest, and hope you find the information of value, or at least a good starting point for further inquiry.
End Website Precis ---
Sincerely,
Paula Moran
gemhound@dnet.net
http://www.geocities.com/WallStreet/Floor/7056/
6514 Highlands Road
Franklin, NC 28734
Ph: (704) 369-8791
None.
