Sunday, May 20, 2007

The Ethics of Allstate

After reading today's latest revalations of rampant fraud by Allstate, I found myself reading from the Allstate Corporation Code of Ethics:

Making Ethical Decision

Allstate is committed to operating its business with honesty and

Integrity and Compliance

Allstate is deeply committed to integrity and compliance [with the law] ... As one of Allstate's core values, integrity must be a part of all business goals and activities....

  • We act honestly and deal fairly and ethically with customers, suppliers, competitors...
  • We will avoid any unethical activity even if it is not expressly illegal.

Questions to Consider

  • Is it legal?
  • Does it comply with this code and the policies that apply to the
  • How will it affect others -- consumers, competitors, shareholders, other
    employees, agencies, or the community, and you?
  • How will it look to others...?
  • How would you feel if this decision were made public? ...
How does anyone in the Northbrook, Illinios headquarters square this with the continuing revelations that the company has committed systematic fraud in the wake of Hurricane Katrina and the Federal Flood?

I can hardly find words to describe the anger I get when I read about the insurance companies. The best I can do is this. New Orleans is a city beset by a horrendous violent crime problem tied to the drug trade. If I could push a Big Red Button and choose to send either all of the gun-tottin' ganstas or all of the fiduciary officials of Allstate to prison tomorrow, I would choose the suits at Allstate and take my chances with the gang bangers.

But in a story which I did not see online yesterday, I find that I may not have to make that choice. There may yet be one uncorrupted official left in the entire United States with authority to take these scum down.

Actually, scum is not a fair and accurate description. The Allstate executives and employees engaged in this massive, interstate fraud are not scum. They are below scum. They are the nasty little things that live in the dark of the pond and feed off the uderside of the scum.

When I'm done venting here, I going to call a telephone number I discovered in Allstate's Code of Ethics and ask what precisely they plan to do about the company's continuing criminal activity.

The Allstate Alert Us Line is a 24 x 7 toll-free number that all non-employees can use to alert the company about issues with company employees ... The Alert Us Line can be accessed by calling 1-800-427-9389.
Or perhaps we should all go to the web site of the Coalition Against Insurance Fraud and follow the link to report Allstate to the National Insurance Crime Bureau. (They also have a toll free number: 1-800-835-6422.

I think that's a much better idea than picking Allstate agents at random out of the phonebook and asking why we shouldn't armor the levees with their skulls. Hell, it's not the agent's fault. They just sell the stuff. Still, I can't figure out why anyone would want their name and photo plaster on the side of a bus advertising their affiliation with Allstate. You might as well slap your business glamour shot up on a billboard with Pedophile in three foot letters.

Better yet, consider this: Allstate proudly lists $157 Billion in assets. They've already lost one $2.8 million judgement based on one of their fradulent "engineering" reports. We could build a lot of levees and houses with $157 Billion. All we need is an attorney general with some balls instead of the worthless one we've got.

Update 6-3: While I was on vacation, this further evidence of systematic fraud by Allstate, State Farm and other insurers came to light.

You obviously have no understanding of the law or the insurance industry. You have been spoon fed retarded facts that are erroneous. Point a finger at the money, because businesses making money is sooo wrong. Right? Katrina was undoubtedly one of the most tragic events that i have ever seen or witnessed. And yes, i was on the front lines, day in and day out for 254 days serving all sorts of people in every imaginable situation. Allstate and the other insurance companies are only following laws created by the very persons you voted for, so its your fault... not theirs. Flood policies are written by the state, and the insurance companies adhere to all laws regarding the coverages under each policy. Rising water is not covered under any homeowner policy which is why 100% of all persons in Louisiana who carried National Flood Insurance have had their claims settled and paid for. Many of whom i personally handed 100+ thousand dollar checks to. Those tragic stories of people who the insurance companies supposedly wrong willingly elected not to purchase flood coverages, simply because they didn't have to. I don't hear you whining about the people in the Midwest whose homes were destroyed throughout the month of June 2008. They lived well above any flood level, didn't get coverage, and are unfortunately screwed now. Is it the fact that you are trying to be politically correct because you are rich and white and feel like some Rich White board members screwed some poor black people. I just hope that's the case because if so, you are normal for feeling bad. Yes its sad peoples' lives were ruined and some even lost, but you need to start pointing your finger elsewhere, because your points are just not valid. You have no evidence to back up any claims you are making. Do some research and then get back to me. Find out how much Allstate paid for Katrina related losses in and out of Louisiana. You will be extremely surprised.
You were on the front lines? An adjustor perhaps? Then you should know first hand of the deliberate practices employed by Allstate (and others such as State Farm) which continue to make them the number one focal point of litigation and negative judgments. Right? No one has ever stated that "for profit" business is wrong. But a” for profit" business that takes the position of "for a little more profit at the expense of the insured" is wrong. Allstate and SOME other insurers find themselves immersed in litigation not because they are following the law but because they are deliberately attempting to dodge the law. You use someone else's unfamiliarity with insurance law (P&C licensed by the way among others) to state they have no basis for their complaint. That is so inaccurate. You don't need specific understanding of the intricate workings of homeowner's coverage to know when something is wrong. The more you know the more apparent the wrong doing and the more nauseating the audacity. Insurance regulations were not created the foremost intention to protect the insurer. It is the insured. Insurance has existed for far longer than any one of us posting, however regulations to protect the consumer are really not all that old. It was only a little over 10 years ago that we told medical insurers "hey you can't arbitrarily deny claims for 6times before paying to weed out the weak and non-persistent". It has nothing to do with race, situation, or geographic location. Whether you were in a car accident, a total loss house fire, or a hurricane Allstate's good hands will give you the finger at the first chance and hide behind regulations and twist the law and facts to drag out the process. What the McKinsey documents prove is that didn’t take long for companies like Allstate to figure out their share price and profit margins went up considerably just by dragging out the claims process and forcing "low ball settlement" or multiple year litigation. So if you'll take less than what you're entitled to "We'll Help!" if not then sue us and maybe in five to six years a jury will award you 3 times what your claim is worth but we've made far enough to cover the difference in the five years you've waited. We win no matter what!!! Hooray for shareholders and CEO pockets! Profit and growth at the expense and on the backs of the common middle class insured. It's disgusting. Those of us who have been on the "front lines" and worked for and with these companies know perfectly well what they are doing and I'm ecstatic to see that more and more states are holding them accountable for their actions. It doesn't take a legal expert or insurance licensed individual to tell morally right from wrong. It just might take someone whose paycheck doesn't depend on it to admit it. "Spoon fed retarded facts"? Sounds like you've been spoon fed corporate propaganda and made it a daily meal. Of course it really is subjective opinion isn't it? The majority of us just don't understand how it works. Right? We're all wrong and those "in-the-know" know better? Which is why Allstate is no longer allowed to sell new business in Florida? Have been fined over 7 mill in MO from a negative judgment arising out of failure to comply? Insurance commissioners, senators, judges, and most of all insureds are getting really tired of the dirty pool tactics. Something wrong with profit? No. Something wrong with endless profits which are derived from the shady determination of coverage that certainly flirts with prison time? Yes. Of course we could just continue to turn a blind eye and go on with life as normal. We could blame the NFIP for not allowing privitization of flood insurance. We can blame individual consumers for being too ignorant to understand the importance of carrying the proper insurance. We can blame lack of corporate knowledge and say that consumers misinterpret profit for wrong doing. I suppose those options are far more comforting than looking at the cold hard facts in case law, after case law, after case law, of legitimate litigation that clearly shows that insurance companies do what they always do…. Get rich by denying claims. They just find new ways to do it. Remember this: when you do get to court it isn’t a panel of insurance agents deciding if you’re guilty – it’s the same John Q public who tire of hearing that “spoonfed” garbage about how they don’t understand “business” operations deciding your fate. And we are all tired of the BS. Pay the damn claim, suck up the drop in share price, and petition the insurance commissioner for a raise in rates that has a realistic explanation….we’ve paid out so much in claims that we have to recoup some by a raise in rates. Better yet? Send some of these Allstate “top dogs” to prison and the dominoe effect will eventually pay off.

Here's the song I wrote about Allstate:
You're not in good hands with Allstate ...This is a song I wrote about our awful experience with this criminal insurance company.
We must all fight back and never rest until the laws are changed and insurance company's cannot get away their lying, cheating and stealing..... harming the very people they are to protect and serve.
You are in evil hands with allstate.

Song I wrote: You're NOT in good hands.
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