For years personal injury insurance companies have been claiming fraud is getting more and more out of hand. Over the past several years, even with an incredibly poor economy we've seen companies like State Farm have record setting profits of $800 Million in 2009 and $1.2 Billion in 2010.
So with these claims come suspicion as to their motivation. Why would a company and an industry that's doing so well and so profitable claim fraud is killing their profits and causing greater losses to their company??
Profits. Pure and simple.
According to some, the claims of fraud are a "smokescreen to hide padded profits".
This wouldn't be the first time the public trust has been compromised, politicians in hand in order for corporate profits (anyone remember Fannie & Freddie??).
Read more in this great article entitled: Claude Hanuschak: PIP fraud is exaggerated
So when the politicians start with the TV and Radio ads blaming your local doctors and attorneys, remember this blog post and Claude's words... PIP Fraud Is Exaggerated; all because they want to charge YOU higher premiums!
Showing posts with label UAIG. Show all posts
Showing posts with label UAIG. Show all posts
Friday, January 20, 2012
Wednesday, March 16, 2011
Proposed Florida Legislation Calls For "Fraud Tax"???
Here in Florida, a House subcommittee this morning approved a controversial bill that would limit fees for attorneys who sue insurance companies in disputes about so-called PIP claims...and here we go again.
Insurance companies cry foul when it comes to fraud because they say they are losing so much money due to fraudulent claims. This year not only were they promoting their agenda regarding PIP fraud and staged accidents, but suddenly sink holes too.
Please realize that an insurance company is a business like any other. So they try to wield their political influence in such a manor as to gain any business advantage in their market. Remember, they are in business to make a profit. And, there's nothing wrong with that. But when you run a company like State Farm and constantly tell people you're losing money to fraud when in 2009 you made a paltry $800,000,000.00 profit (yes, that's 800 million) and then in 2010 you increase your profits to $1,800,000,000.00 profit (that's 1.8 Billion in profit)...yet you continue to cry to your legislatures that fraud is continuing to harm your business, who do you think you're fooling?
No doubt that fraud should be stopped for no other reason than it's fraud and it's wrong. But if the stated statistics are true, then it seem that with the increase in fraud comes an increase in insurance company profits. I'm not sure how that works, but it seems to be the case.
But with all of the efforts that have taken place, one of the biggest reasons for a change in legislation is because fraud costs the consumers just way too much money...AND it's taking money out of the consumer's pockets. Yet, with all the legislation, with all the hoopla, with all the incredible profits posted by these insurance companies, I have yet to see one of them lower their premiums. None!
When do the consumers get to save money? How much does someone like State Farm or the others have to profit by to get them to stop raising rates? Maybe $1.9 Billion and we get a discount? Excuse me but I won't hold my breath.
The real fraud is that this is a game to the insurance companies. They cry fraud, they get their PR companies to get article after article in the newspapers and stories on TV all to justify their raising your rates... Good luck to them, let's see if you can make a $2-Billion Dollar profit in 2011.
Seems like in a down economy, being an insurance company would have been the best bet. People pay you for insurance and you get to deny their claims until an attorney calls you on it. Now, they want to limit an attorney's ability to protect the rights of citizens. Assuring their ability to increase their profits and rake you over the coals on their way to the bank to deposit their profits.
http://www.healthnewsflorida.org/top_story/read/state_officials_target_fraud_tax
Insurance companies cry foul when it comes to fraud because they say they are losing so much money due to fraudulent claims. This year not only were they promoting their agenda regarding PIP fraud and staged accidents, but suddenly sink holes too.
Please realize that an insurance company is a business like any other. So they try to wield their political influence in such a manor as to gain any business advantage in their market. Remember, they are in business to make a profit. And, there's nothing wrong with that. But when you run a company like State Farm and constantly tell people you're losing money to fraud when in 2009 you made a paltry $800,000,000.00 profit (yes, that's 800 million) and then in 2010 you increase your profits to $1,800,000,000.00 profit (that's 1.8 Billion in profit)...yet you continue to cry to your legislatures that fraud is continuing to harm your business, who do you think you're fooling?
No doubt that fraud should be stopped for no other reason than it's fraud and it's wrong. But if the stated statistics are true, then it seem that with the increase in fraud comes an increase in insurance company profits. I'm not sure how that works, but it seems to be the case.
But with all of the efforts that have taken place, one of the biggest reasons for a change in legislation is because fraud costs the consumers just way too much money...AND it's taking money out of the consumer's pockets. Yet, with all the legislation, with all the hoopla, with all the incredible profits posted by these insurance companies, I have yet to see one of them lower their premiums. None!
When do the consumers get to save money? How much does someone like State Farm or the others have to profit by to get them to stop raising rates? Maybe $1.9 Billion and we get a discount? Excuse me but I won't hold my breath.
The real fraud is that this is a game to the insurance companies. They cry fraud, they get their PR companies to get article after article in the newspapers and stories on TV all to justify their raising your rates... Good luck to them, let's see if you can make a $2-Billion Dollar profit in 2011.
Seems like in a down economy, being an insurance company would have been the best bet. People pay you for insurance and you get to deny their claims until an attorney calls you on it. Now, they want to limit an attorney's ability to protect the rights of citizens. Assuring their ability to increase their profits and rake you over the coals on their way to the bank to deposit their profits.
http://www.healthnewsflorida.org/top_story/read/state_officials_target_fraud_tax
Sunday, February 14, 2010
United Automobile Insurance Company Fighting Fraud??? Are You Kidding Me???
How is it that an insurer that has been caught denying most claims without any justification is now fighting fraud? This is like the fox guarding the hen house. Many doctor refuse to treat those insured by United because United Auto blindly denies so many claims (Go dig through your DVD library and re-watch the movie: The Rainmaker with Matt Damon and you'll understand what we're talking about). For no good cause, United Auto forces their insured to go to “their doctors” to be examined. Their "I.M.E." doctors almost always say care is not needed. Don't your find it funny that people get into car accidents and are ALMOST ALWAYS are deemed to be 'okay' and their benefits cut off. Tell me that’s not fraud...
United Auto forces most of their insured to go to the home office of United Auto to give a recorded statement simply for making a claim. UAIG does this because when an insured does not go to their doctor or to their statement, United Auto can use this "failure to attend" as a basis to deny their claim and deny their insurance benefits. United Auto is great at taking money from the hard working insured people of Florida, but they have not figured out how to pay claims without putting up hurdle after hurdle to deny claims......
For those that they (UAIG and others) legitimately catch perpetrating fraud - well, kudos to them. But we'll reserve the kudos for UIAG and others, and give them out on a case by case basis. Although there's the appearance of fighting fraud on the surface, it's all about not paying out benefits as the foundation of their efforts. For some not to strange reason, we're still thinking about that fox and the hen house thing. That being said, the stance of the Florida Personal Injury Blog is that all fraud should be stamped out. We'd like to see those with real injuries have their rights protected under the law and the terms of their insurance contracts; and their injuries treated until they are back to "normal" or at least until they've reached maximum medical improvement - with only necessary treatments and diagnostic tests done.
Post your comments & stories below
United Auto forces most of their insured to go to the home office of United Auto to give a recorded statement simply for making a claim. UAIG does this because when an insured does not go to their doctor or to their statement, United Auto can use this "failure to attend" as a basis to deny their claim and deny their insurance benefits. United Auto is great at taking money from the hard working insured people of Florida, but they have not figured out how to pay claims without putting up hurdle after hurdle to deny claims......
For those that they (UAIG and others) legitimately catch perpetrating fraud - well, kudos to them. But we'll reserve the kudos for UIAG and others, and give them out on a case by case basis. Although there's the appearance of fighting fraud on the surface, it's all about not paying out benefits as the foundation of their efforts. For some not to strange reason, we're still thinking about that fox and the hen house thing. That being said, the stance of the Florida Personal Injury Blog is that all fraud should be stamped out. We'd like to see those with real injuries have their rights protected under the law and the terms of their insurance contracts; and their injuries treated until they are back to "normal" or at least until they've reached maximum medical improvement - with only necessary treatments and diagnostic tests done.
Post your comments & stories below
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