Thread regarding State Farm Insurance layoffs

Is unethical claim handling still happening?

Here is my brief background. I used to work at State Farm at a claims operation center. I worked in injury for a year. I worked for the company for nine years. I do have family members that work at State Farm. I quit working at State Farm for the following reasons: I could not ethically do my job; management was inflexible with my school schedule; and I feel, my immediate management was setting me up for failure because of my educational goals. (I passed my state's bar exam recently.)

I learned the following while working at State Farm:

Lying is an effective negotiation tactic.

If you are a staff assistant and you have connections with management, you can get $30,000 to $40,000 for a knee injury that is at best questionably related to a car accident. Then about ten years later that same staff assistant can bully and harass a claim specialist that does not give preferential treatment to him or any customer. (This same staff assistant complained to my team manager so that I got removed from that staff assistant's claim, and the staff assistant got the monetary compensation that he wanted.)

State Farm does not put adequate resources into investigating insurance fraud.

State Farm is okay with auto property damage fraud of up to $8,000 to $9,000 per claim per SIU training I had attended during the last year that the ACC environment was around.

Also, I was threatened with being fired because a SIU team manager was upset about the level of detail I had put in my file due to my claim investigation. My file notes indicated a fraud ring consisting of certain foreign nationals. I had named that particular nationality specifically.

State Farm will pay on a total loss when the vehicle was subject to a conversion. (Few claim specialists in total loss would know what conversion is.)

State Farm encourages fraudulent injury claims based on business practices circa 2017, so long as those claims do not exceed the claim handler's minimal authority for all the people involved.

Agents are not adequately trained in the policy they are selling. Most do not know what the policy covers or what customers mean by full coverage. Example: (Most customers think that rental is included with full coverage.)

State Farm metrics promote at least unethical claim handling and probably in some states -bad faith claim handling. For instance, claim handlers are supposed to have adequate time to thoroughly investigate a claim to make a proper liability decision. My management was on me like a fly on dung if my investigation did not wrap up on the same day because some customer was complaining or because I needed to get in contact with a witness.

One claim I worked, my manager wanted me to find against our insured because our insured had made a left in front of a motorcycle. I told that manager that the claim was not so simple, and all the witnesses needed to be contacted. I think that claim took about a month to resolve liability. I had to hold my ground against my manager. For the benefit of our insured, I was able to make a favorable liability decision for the insured because of my taking the time to do a proper investigation despite pressure from management to resolve the claim.

State Farm is inviting fraudulent claims by doing away with its State Farm field inspectors.

I'm sure many of you have similar stories. Please post for this community's reading pleasure.

Best of luck to you all.

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| 3681 views | | 11 replies (last June 7, 2019) | Reply
Post ID: @OP+XmcT8hg

11 replies (most recent on top)

Over the last 5 years (TM over 25 years) - my claim rep or myself via file review would identify inured parties that had a potential U/M claim.

We would send a file note to Injury so they would be able to extend coverage and conclude settlement. I was also taught that it was our duty and obligation to identify all coverages available to an injured party.... Instead, the Injury claim handler disregarded our note and never opened uninsured coverage or took any type of action.

After speaking with Injury management peers, I learned this was an established practice. Disgusting and unethical

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Post ID: @25tcu+XmcT8hg

To all of you who posted , I guess you could say , against what this OP posted , apparently either have blinders on , or were trained exactly the way she states claims are handled and you just don't know how a claim is really supposed to be handled, Especially if its not a cut and dry liability decision. So with all your immature remarks about her post you really don't realize how ignorant you sound in regards to real claim handling. In regards to the Metrics post . You need to get a clue dude. Metrics System is going to put State Farm under and its slowly getting there with all the reports on good ol Tips in executive to all the new law suits of SF getting sued for fraud. just hold on until its over and you are out in the cold and realize that all these people and SF as whole that you are putting on a pedestal , don't give a Rats A _ _ about you.

Look up Uninsured and Underinsured claims. So all those people that got cheated out of their claims being paid , from all over the U.S., that don't know each other from atom , all of those people with such very very similar stories, THEIR ALL TELLING LIES. ALL OF THEM . Wow amazing that that cold happen but State Farm is not being unlawful under that State Laws that the Department of Insurance in each state sets down as to say having your claim fully investigated , prompt service into payment of those claims. Theres is such thing as common sense. Common sense tells you that when you see thousands upon thousands of people all over the U.S. submitting comments that all have to do with claims not being paid , and then you sit back and look at how very similar each one of their claims are in amounts and what coverage they are being put under , that I don't know , maybe , just maybe that the chance that one company , State Farm is telling the truth and EVERYBODY ELSE IS LYING , IS THAT WHAT YOUR SAYING.

In regards to her saying she could feel she was being groomed to be harassed or fired out of her job for doing her job. There is not one ounce of my body that doesn't believe she is telling the truth. Not one single doubt in my mind that she is telling the truth. Why , because I know. I was there for a very very long time . Very long time. I have seen it all, heard it all right from claim reps mouths from Litigation reps. to Injury reps , to claims processors , litigation secretaries and I could go on. All of these employees that I heard of the same exact handling of what this OP is saying were all with State Farm well over 20-25 years. So to cut the original OP down when apparently none of you have any idea of what your talking about and suggesting that she was fired when she clearly stated she initiated the separation of employment is just an inkling that you are in the dark about everything.

Granted you may only be going by what you have seen and what you have done but I would clearly have to question how long you have been there and in what capacity. I was in the dark for a very long time thinking I worked for a company that was Ethical to their insureds and employees but I was wrong and it was devastating to say the least. Granted again they will pay enough claims like that should and will treat many employees like they should be that doesn't mean its mainstream through the company and like it or not . SF is a business , and they want to make money. Holding on to insureds money by delaying payment gathers interest and if that process is done country wide to every claim , wouldn't you say that adds up to a lot of money. Denying so many claims that they can get away with if they are over a certain amount of money or low balling on claims country wide wouldn't you say that makes a profit for the company. They take how long the insured has paid in premium, compared to what they may have to lay out in a large claim say anything over 50k and see if its a profit or loss. If its a loss the three D's come into play. Deny, Delay, Defend, Which all make SF money as that is money that is collecting interest or is invested until the court date and they win or lose.. The longer the delay , the more time to collect interest and if they are forced to pay well we haven't lost that much or no big deal delaying it for years and causing agonizing stress and financial hardships to the insureds that were in such a severe accident or home fire etc bears no weight on them . They don't care and that is what is so unethical as people pay these premiums in promise of Ethical Claim handling which many do not receive for the mere purpose of greed. Some have been insureds for over 30 years and have had very very minimal claims submitted all those years. So when something significant happens in reference to a loss that alters the insureds life in a big way , to do this type of claim handling is the bottom of the barrel and it does go on whether you want to believe or not , doesn't mean it doesn't happen. Word of advice . When tenured employees share significant information that in no way benefits them by doing so , be smart enough to know they are telling the truth as it only benefits you to know so when you finally come in contact with it , your prepared . Might still be shocking but at least you were told. Never put everything on pile thats how things get lost. In other words open your eyes and keep other ventures you may seek alive, because you never know when you may have to change direction. Tenured employees don't have any reason to lie about certain things and if they are being pushed out, why not start voicing what goes on. Its obvious if they are getting treated unfairly for either wanting to do their job right or being pushed out because of age , State Farm doesn't care so why should they care about blowing the Whistle on State Farm . All fairness goes out the window when you start fighting dirt and don't follow the rules of respect and ethical practices your bound to under being an insurer and employer. So when people start letting the cat out of the bag its because they are forced to to fight for what is right. Hopefully you will never be in that position and I truly wish for all of you that commented negatively on the OP post that you never have to go through any of it.

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Post ID: @1Wegn+XmcT8hg

Original poster, trolls nothing more than trolling, ignore it. I don’t see dishonesty going on where I am at. The things you describe I simply don’t see. As far as dead weight? Maybe some have been lost but for the most part I see dead weight simply being placed in another position. I would say from my perspective the problem is the value brought to the company from past experienced employees has been lost. Because the attitude of “what you did in the past the company deemed has no value”. So all your good hard work you did, the company doesn’t want, they want claims paid and closed. That will be the issue, when we fail to protect an insured properly and get hit with 10 mill bad faith. The issue here is not we have more dead weight, or not good people. The issue here is the experienced lost ACTUALLY had value and we threw 70% (guessing but close) to the wind. So don’t listen to the kool aid drinking trolls here they are just full of BS. Either don’t work for SF, some exec who is p-ss-d the system isn’t working, or data analyst who is trying to justify their job. Ignore it

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Post ID: @hwuw+XmcT8hg

The days of real claim investigation are over. All management wants is the claims closed. It is extremely easy for an insured or claimant to pad a claim or committ flat out fraud and get away with it. Gone are the days of interviewing witnesses, scene investigations and doing everything you can to protect our policyholder. We pay anything to just close a file for better metrics. Limited claim rep training and huge inventories prevent real investigation and claim handling.

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Post ID: @2nfe+XmcT8hg

Life is great at the Farm. Blessed to work thete.

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Post ID: @2ovi+XmcT8hg

with most of the dead weight and slackers gone (including OP) life is good baby

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Post ID: @1nlf+XmcT8hg

Agree 100% with the OP - it’s even worse than you describe.

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Post ID: @1tlg+XmcT8hg

Yep, you got fired... Go buy that shovel.

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Post ID: @1vbm+XmcT8hg

Metrics is the only thing any employee of State Farm should be concerned about. Metrics will turn this company back around along with funny commercials. This is a factory and every claim is exactly the same. Metrics will solve all issues and if a customer doesn’t like it, explain the metrics and they will understand.

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Post ID: @1tld+XmcT8hg

To the person who said I was fired. No, I was not fired. I quit. As I stated, I felt management was setting me up for failure because of my educational goals. However, your failure to read is similar to management’s failure to read facts put in file notes. No matter who was in management, few actually read the file notes. Then the manager would ask for the same information, and I would have to point the information out.

Injury was a fascinating environment. One claim associate had plenty of time to watch episodes of Orange is the New Black. As a claim specialist, I was too busy to watch any Netflix episodes on the job.

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Post ID: @hjp+XmcT8hg

Sounds like you were a slacker that got fired from claims.... The world needs ditch diggers too.

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Post ID: @weq+XmcT8hg

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