FBIC - Fight Bad-faith Insurance Companies
Navigation Bar
FBIC Home Page
Navigation Bar
BAD-FAITH SURVEY
(File Insurance Complaint)
Navigation Bar
Good-Faith Survey
(Submit A Plaudit)
Navigation Bar
FIND-A-LAWYER
(Lawyer Directory )
Navigation Bar
'FBIC RANKING 100'
Navigation Bar
MAKE A DONATION
(On A Secure Server)
Navigation Bar
Bad Faith FAQ
Navigation Bar
Bad Faith Claim
Practices Defined
Navigation Bar
Bad Faith Claims
Practices Reality
Navigation Bar
Reference Library
(Articles-Videos-More)
Navigation Bar
Vacatur
(Should Be Illegal)
Navigation Bar
Whistleblowers
(Insurer Employees)
Navigation Bar
State Insurance Laws
Navigation Bar
Your State DOI
Consumer Record
Navigation Bar
Links Directory
Navigation Bar
Legal Disclaimer
and Copyright

Navigation Bar

FOR LAWYERS
(FBIC Lawyer Section)
 

State Attorney Generals And Others Investigate Insurance Industry Charging "Widespread Fraud And Corruption"



Table of Contents Of Agencies Insurance Industry Investigations, Results
(Click on the following links to view)

  • Introduction - AGs Investigations, Results (various states)

    On October 14, 2004, NY Attorney General Eliot Spitzer Announced A Lawsuit Brought Against Marsh & McLennan Companies, "The Nation's Leading Insurance Brokerage Firm", For "Fraud, Bid-rigging and Antitrust Violations".  The following Major Insurance Companies AIG, Hartford, ACE, and Munich American Risk Partners" were named in the Complaint as Participants." AG Spitzer said, "The insurance industry needs to take a long, hard look at itself."  "If the practices identified in our suit are as widespread as they appear to be, then the industry's fundamental business model needs major corrective action and reform." "There is simply no responsible argument for a system that rigs bids, stifles competition and cheats customers," he added, "alleging that it steered unsuspecting clients to insurers with whom it had lucrative payoff agreements, and that the firm solicited rigged bids for insurance contracts."  "The Attorney General's office has uncovered extensive evidence showing that it distorts and corrupts the insurance marketplace and cheats insurance customers." "Marsh, at times, solicited fake bids" "even as it claimed in public statements that its "guiding principle" was to always consider its client's best interests." The "immediate victims of the illegal practices were ... mainly large corporations seeking property and casualty coverage, but also small and mid-size businesses, municipal governments, school districts and some individuals." In a press conference, Attorney General Spitzer indicated, as referenced by the title of his Press Release, "Investigation Reveals Widespread Corruption In Insurance Industry", that as the investigation continues, it could proceed further into property & casualty, expand into auto, health and other areas of insurance. "Trust me," Spitzer said upon filing his complaint against Marsh, "this is Day 1".

     New York State Attorney (AG) General Eliot Spitzer Charges "Widespread Fraud And Corruption" And Illegal Activities As Common Practices Against The Insurance Industry. The NY AG Along With A Number Of Other States Attorney Generals (AG) Offices Playing Significantly Lesser Roles, The SEC (The Securities and Exchange Commission), The NAIC (The National Association of Insurance Commissioners), A Handful Of DOIs (The States Departments Of Insurance) And Authorities Also Commit To Investigate.

    ATTENTION ALL AMERICANS: Observe And Examine Related Concurrent Investigations And Probes By These State And Federal Government Agencies And Related Institutions And You Be The Judge As To Which Of The Agencies, (If Any), Are Honestly Concerned About Consumers Best Interests Vs. The Self-Serving Interests Of The Powerful Big $$$$$ Insurance Companies And Insurance Industry ... Which Of The Agencies, (If Any) Do What They Actually Say They Are Going To Do ... And Then Vote Your Judgment In Future Elections According To Their Lack Of Performance To Properly Support Consumers And Your Best Interests.

    ... And then there was the state of CT (Connecticut) Department Of Insurance Commissioner Susan Cogswell who defiantly refused to investigate and refused all cooperation indicating that there was no such insurance companies frauds or corruption in her agency or state. She was obviously proven repeatedly upon repeatedly to be dead wrong.  In spite of the fact that investigations by the Connecticut State Attorney General proved her wrong in this regard on many fronts and in spite of her misplaced arrogance when her agency holds the responsibility to protect Connecticut’s citizens from just such Insurance companies practices, now more than 1 year later, It is truly unbelievable that Cogswell is still CT's Insurance Commissioner. This speaks volumes for the ethics and disgraceful state of Connecticut's top political government officials ... not only for Insurance Commissioner Cogswell, who if she did not resign, should have been fired, but also for the former Lieutenant Governor M. Jodi Rell who replaced CT Governor John Rowland (Rell took over the Governor's post when Rowland had to resign in mid 2004 amid scandal facing charges of corruption and impeachment). Rell indicated upon temporarily filling the office that she would clean up the corruption in CT's government and her office ... appears to be nothing more than political rhetoric as no action appears to have been taken to clean up the corruption. With what appears to be corruption as usual in Connecticut, guess there's good reason for it being the insurance capital of the world? (Note: On April 18, 2007 Thomas R Sullivan was newly appointed as the CT Insurance Commissioner replacing Susan F Cogswell who was removed and assumed the post of Deputy Insurance Commissioner).

    NY Attorney General (AG) is the first to contend that the insurance industry is guilty of "Widespread Fraud And Corruption".  How do our country's major insurers fare?  Will the states insurance regulatory authorities continue to have exclusive domain or will the Federal Government step in and have shared oversight authority over our country's present bad faith big insurer control-based and much needed out of control exclusive state regulated insurance industry? ...

  • Oct 14 2004 NY Attorney General (AG) Eliot Spitzer Brings Lawsuit Against Giant Marsh & McLennan Companies (MMC), The Country's #1 Largest National Insurance Brokerage Charging Fraud, Anti-trust Violations, Bid-Rigging, Inflating Prices, Kickbacks, Improper Steering ... First Of The Insurance Company Executives Pleaded Guilty With Many More Expected To Follow, Other Major Insurance Firms Implicated.  NY Attorney General (AG) Spitzer Initiates The First Of An Ongoing Investigation Into The Insurance Industry's Improper And Unlawful Practices. NY Attorney General Spitzer Investigation Indicates "Insurance Industry Corruption And Illegal Practices Are Widespread".

    The NY Attorney General Press Release, Entitled "Investigation Reveals Widespread Corruption In Insurance Industry" Announces A Lawsuit Filed Against Marsh & McLennan Companies (MMC), "The Nation's #1 Largest Insurance Brokerage Firm" Charging "Fraud And Antitrust Violations." "Major Insurance Companies Named In The Lawsuit Complaint As Participants Include AIG, The Hartford, ACE And Munich American Risk With Many More Expected" ...

    Many illegal insurer "claims related" practices over the past 20-30 years have fortunately for the Public become increasingly reported and exposed, and as a result have become well known to exist by each state's DOI (Department of Insurance) Agency and Insurance Commissioner whose responsibility it is for regulating their state's insurance industry. Insurance companies illegal bad faith related practices in the area of 'CLAIMS', comprising the pervasive and repeated unlawful acts of denying coverage, lowballing, not paying claims, other breaches of contract and reported abuses against claimants have steadily grown to be more rampant and increasingly widespread over the past three decades.  As such, they have steadily been increasingly reported to state DOI regulatory officials (FBIC has seen to that) and in fewer cases but which still amounted to a significant number, they were also reported to state Attorney Generals law enforcement Agencies.

    In these cases, state DOIs rarely if ever acted on the individual's or person's behalf ... And have still yet to be addressed by state Attorney General enforcement officials that possibly for the first time ever in history have currently commenced such sweeping multi-state investigations into the widespread fraud and corruption found to exist in the 'SALES' end of the insurance business.  Insurers improper and fraudulent CLAIMS practices have seen their greatest increases in the illegal intentional breach of contract and bad faith practices with insurers worst abuses having been reached in the past decade. Today these insurers illegal claims settlement practices have reached widespread and pervasive levels of misuses and abuses all in the name of maximizing insurance companies corporate profits and individual personal gains of a relative small number of each company's top, senior and middle management at the expense of millions of policyholders and peoples' lives, cheated claimants whose legitimate claims were intentionally and wrongfully denied.

    As a result, many millions of Americans families have been adversely and financially impacted to extremes. In addition, in many cases the claimants were the families' only breadwinners who subsequently lost their lives or took their own lives as bad faith insurers practices and unconscionable unlawful insurer abuses grew too much to bear and become more the norm if not standard operating procedure by many of our country's largest and leading insurers. Bad faith related insurers objectives in some cases are simply not to pay as many claims as possible, to not pay or stop paying as possible their costliest claims, to not pay a great many claims esp. where they had learned through investigation, that they could most likely or very easily under the person's circumstances get away with not paying ... in other cases, their most utilized tactic is just to deny coverage and repeatedly continue to deny coverage as necessary, and/or to use every delay tactic in their extensive arsenal, and continue to delay some more as necessary until the denied claimant goes away, ultimately passes away or commits suicide which they know to be a frequent, relatively common occurrence.

    Most importantly ... and what this website is 'most' about, is to  inform and increase awareness of an unsuspecting American Public about their need to take action to protect themselves and their families from extreme harm as a result of widespread criminal actions and fraudulent breach of contract and bad faith insurance claim practices by a significant number of our country's largest and leading insurance companies.  As a result concerned individuals need to know before something happens, that would necessitate their making a claim, whether their insurer is a "Good Faith" or "Bad Faith" rated insurer. If your insurer is ranked as a bad faith insurer, it is important for you to know so that you can give important consideration whether to take immediate action and switch your insurance from a known bad (faith) insurer over to a known good (faith) ranked insurer now, upon renewal or at the earliest possible convenient time in order to best protect and spare you and your family in advance of an adverse event occurring where your claim was denied for no good reason and went unpaid which would/could put you in substantial jeopardy and result in disaster and your losing everything and your life as you know it. Each person that takes action to protect themselves besides having peace of mind by knowing you have better protection, also impacts and sends a strong message to the bad (faith) insurer that they don't want to pay or be insured with an insurer whose criminal and fraudulent activities by some of the upper management at the company who are intent on illegally withholding and denying coverage and fraudulently not paying claims which are legitimately due you by law in order to benefit their company's profits and their own personal gains and intentionally do you significant harm. 

    Widespread corruption and fraud in the insurance industry has been found and acknowledged to exist and to be widespread as confirmed by governmental agencies and many others.  Unfortunately, the law enforcement officials lack the necessary enforcement action to stop these improper actions from continuing to happen as a result of these insurers enormous power and wealth and being among the largest contributors to state officials election campaigns.  Fortunately, The American people by the freedom to choose, and the power inherently bestowed upon them by the Constitution, are the only ones able to effectuate the necessary corrective change  regarding the (entitled Oct. 14 NY Attorney General Press Release) "Corruption And Fraud Found To Be Widespread In The Insurance Industry" BY ALL AMERICANS ASKING YOUR EMPLOYERS NOT TO BUY or OFFER  UNUMPROVIDENT aka UNUM Insurance (incl. its subsidiaries, affiliates or owned companies) TO EMPLOYEES until UnumProvident learns how to do business and pay claims in good faith ... and furthermore don't be taken in by their usual procedure which is to only comment on the dollar amount of claims they have allegedly selected to pay. When that day arrives WHICH CAN ONLY BE EFFECTUATED BY THE WILL AND SUPPORT OF THE AMERICAN PEOPLE, we will gladly make it known to all.]

  • (Since) Oct 14 2004  Insurance Industry Investigations Into Widespread Corruption And Illegal Sales Practices Have Grown Nationally As More State Attorney Generals (AGs) Announce Investigations. State Attorney Generals Investigations (In Addition To NY) Include: AL, AZ, CA, CT, DC, FL, GA, IL, MA, ME, MI, MN, NC, NJ, OH, OR, PA, TX, And Others. (Comment Feb. 2005: Besides the NY AG's ongoing investigations, indicated as just getting started, and a successful increasing number of serious criminal charges and pleas submitted by a growing number of different "national" insurance companies and their execs, it is astonishing that there is little or no performance or prosecutions initiated or happening in other states by other state Attorney Generals where it is obvious and at the very least the likelihood of these same companies illegal criminal actions existing. All citizens need to ask their state's Attorney General what is being done to protect them, their state government and its citizens from such insurance companies criminal activities in their states ... don't expect your state's Department of Insurance (DOI) or whatever your state calls their Insurance regulatory agency to do anything about it as for the past 150-200 years up to the present date it appears to remain the same old corrupt business and politics as usual ... and FYI, FBIC has the proof of widespread fraud in "CLAIMS" to prove it which evidence of criminal activity overwhelmingly and exponentially continues to grow.)

  • Nov 16 2004  NY Attorney General Spitzer Testifies Before U.S. Congress To "Widespread Corruption And Illegal Practices In The Insurance Industry", Characterizes Investigations Findings To That Of A "Pandora's Box Of Unethical Conduct" ...  "Urges Congress To Investigate". CT Attorney General Blumenthal Testimony Before Congress Concurs With The NY Attorney General's Testimony.

  • Nov 17 2004 ULR, Health and Life Insurance SALES Related Brokerage Eyes Charges But Instead Agrees To Cooperate With Prosecutors  As indicative of charges brought by state prosecutors associated with property and casualty areas of insurance in the widening investigation and charges relating to improper sales practices, Universal Life Resources (ULR), a Brokerage Firm in the Health (& Life) insurance business eyes legal charges. Charges against ULR, as reported, mirrors similar charges as those in the MMC brokerage related case. The NY Attorney General although first to break the story has for now deferred prosecution responsibilities over to the CA state Attorney General's and DOI Offices. As indicated, with ULR many or most of the same list of alleged illegal charges and unlawful practices in the MMC case mirror the same and similar illegal practices, unlawful activities, allegations and charges associated with ULR's health, group health and life insurance broking business. Upon making a deal with ULR to release them from any and all illegal charges in exchange for their full co-operation, California authorities lost no time in quickly bringing charges and a lawsuit against the biggest of the big U.S. insurers for starters to include behemoths MetLife, Prudential Financial, Cigna and UnumProvident. The Hartford's Life & Health Operating Group and Hartford Life business unit was not indicated nor has there been comment from the NY Attorney General office regarding whether they had any input into the selection of defendants named in the ULR related suit. As of June 2005, there has been no further mention regarding the results of investigations in this area. As par for the course, FBIC is expecting a few employee casualties and some fines with no admission of guilt ... outrageous that with the fleecing of America's Healthcare system that the 'employees' who personally gained and were guilty of perpetrating these crimes resulting in the many billions of ill-gotten dollars for these insurers that only a small fraction of their gains at best will be paid back in fines and that no jail time will be served. (A Great Message To Send Criminal Bad Faith Insurers: "Insurers Wanted To Rape, Pillage And Steal From Consumers And Businesses Policyholders Pocketbooks In Any And Every Illegal Way Possible ... All Protections Provided ... Pay Only A Relatively Small Fine If Caught".)

    Included and addressed in other areas of interest in the widening investigation and charges relating to improper practices in Health and other areas of insurance is indicative of the subpoenas served upon Hartford which also included inquiries into their business practices in the areas of mutual funds, annuities and professional malpractice insurance among a few. Sources of subpoenas that are known to have been served on Hartford include the SEC and Attorney Generals from the states of NY, FL, IL, TX, CA, CT, MA, MN, OH, and an expected number of other states and states covered under existing subpoenas. It is reported that one state issued as many as 3-4 separate subpoenas regarding the 4 out of 5 areas being investigated and other states may have served Hartford accordingly with more than one subpoena.   Hartford's stock continues to be impacted.  S&P (Standard & Poors) just recently announced a change of outlook for The Hartford  to negative.  In addition, it was reported on November 5, 2004 that Thomas Marra, President of Hartford Life, a subsidiary of The Hartford, on September 21 sold 217,074 shares of the company stock valued at $13.9 million just four days after the NY Attorney General Office served Hartford with two subpoenas on September 17, 2004. The NY Attorney General's office is investigating the timing and related legal issues of Marra's stock sale.

  • Nov 18 2004 UnumProvident Disability Insurance "CLAIMS" Related Announcement. In "a recent CLAIMS related investigation", which was indicated as specifically noted to "not be part of the present and ongoing widespread fraud investigation into the insurance industry's improper SALES related practices being conducted by the NY Attorney General and numerous other state and federal agencies, is an indicator and representative of the widespread fraudulent CLAIMS related practices by insurers that are common today.  The specific details of this horror story amongst horror stories over many years when nothing was done by enforcement officials is referenced by the recent Nov 18 2004 CLAIMS related investigation, outcome and lead action taken by the NY Attorney General's office resulting in an agreement with UnumProvident (aka UNUM) effectuating them to reopen and reassess upwards of some 200,000+ and more denied claim files from the years 2000-2004, and on a per request individual basis to go back to 1996-1999.  FYI, the NY Attorney General's Press Release regarding the outcome and results of the investigation is available for viewing. Although possibly better late than never in other industry cases, one can only guess and wonder how many of these wrongfully denied claimants have since passed away or are no longer available for various reasons. Even now with this agreement, the company still overwhelmingly profits by not having paid these claims for which the claimants paid premiums in order to protect and safeguard themselves and their families in the specific event of just such an occurrence.

    Even in the event where payment of some of the long overdue UnumProvident (UNUM) claims may possibly be made, FBIC knows from past similar experiences that in most likelihood they won't be paid.  FBIC doesn't have to wait for the final tabulation to know the results, especially as we have already heard from those who have started the process that it's just more of the same old process and they have been told for starters expect to have it take two years (probably more or whatever it takes to get the claimant to go away).  Furthermore, we know from experience from other past similar events (and if we know, that means UnumProvident knows even more as they, along with other bad faith insurers and their highly paid legal talent, take their lessons from similar successful past breach of contract and bad faith insurance tactics and strategies from the history books and legal cases that won them the right to not pay the claims based on knowing the updated version of all the breach of contract and bad faith insurance claims practices and their effectiveness in maintaining the status quo that "possession is nine-tenths of the law) that go back 10 or more years to the early 1990s, including that of the results of Hurricane Andrew in South Florida In August 1992 and the Northridge Earthquake in California In Jan. 1994 where all of the denied and unpaid claims were ordered to be reopened by court order, and to this day very little has changed ... that just as many thousands of legitimate claims remain unpaid with the proceeds still in the possession of insurers ... being invested, generating profits and interest for their company’s and management's individual personal gains and benefits which was their original initial objective and reason for not paying the claims in the first place.

    Unfortunately, bad faith insurers to the degree of that of a UnumProvident (or a Hartford) because of an ever inherent criminal enterprise culture embedded from within their company's systems, the nature of their existing built in structure has a vast number of select employees' that are there specifically to oversee, maintain and continue to carry-on the company's highly profit-making criminal enterprise ... and in these cases, these select and higher ranking staff members know no other way and are not about to change the job description of their ways just because of such a court stipulated agreement, court order or a new law ... besides they know that that's why they have a literal army of the best lawyers money can buy, that know and reflect their clients corporate culture and are ready to carry on their corporate clients ways to justify their extremely high and excessive number of billed hours and extremely high  hourly billing rates ... besides they outnumber in manpower any state's attorney generals office by 50:1 if not upwards to 100:1  or more.

    However there are now a very substantial number of plaintiff attorneys specializing in cases against UnumProvident (UNUM) which reportedly are well equipped with mountains of evidence indicating a criminal pattern of proven contradictory and dissenting false statements under oath in depositions and court testimony that is highly reflective of criminal perjury as well as all the necessary proof necessary to prove wrongful and illegal criminal actions that are being used successfully to win the thousands of civil actions comprising class actions, related bad faith and civil lawsuit cases against UnumProvident (Unum). Even so, the NY Attorney General's office or any other Attorney General office has so far shown nothing but reluctance to institute criminal proceedings against UnumProvident and its former Chairman, CEO and President, J. Harold Chandler.  And so, UnumProvident continues to maintain continuity with the same inherent criminal enterprise and structure intact and as such continue to consider themselves above the law as they freely, as if without conscience, continue to disrespect courts and judges and be openly non-compliant with court orders and judgments.

    Furthermore, if the exception occurs where an unpaid UnumProvident claims does ever get paid, which are mostly claims for disability, they will probably be paid on the basis of the amount of the claim submitted at the time and year of the claim, without taking into consider inflation, lost interest, compensatory or punitive damages, etc.  As you can see from all of these factors, even now the insurer clearly wins out 'big time' as indicative of UnumProvident's increase in its stock price after the announced agreement and by not having paid the claims promptly and properly in good faith as they are legally bound to do by law. In addition, regarding the $15 million dollar fine imposed against UnumProvident as indicated in the agreement, that amount is insignificant to UnumProvident's or any other large insurer as it is equivalent at best to 1/10000th (0.0001) of a penny in your pocket, ... and is an insult for all of the suffering that those individuals and families went through. In addition and to add further insult, there was never any criminal charges or related criminal prosecutions from the time the story first broke in 2002. FYI, there are two investigative videos available for viewing free of charge on this website, one from "NBC Dateline" which aired October 13, 2002 and broke the story, and another from "60 Minutes" which aired November 17, 2002 with a much sought after secretive interview with UnumProvident's medical director hiding in seclusion who spoke candidly. You will find detailed information of the recent UnumProvident agreement in the NY Attorney General’s Office Press Release as you continue to read and proceed further down this page (along with the referenced investigative videos from NBC and CBS) ...

    More and more industry experts and high level industry insiders indicate and agree that if ever there was a time to warrant a Congressional investigation, now is the time ... that this is the biggest event ever to impact the industry in our country's history" ... and we have not yet scratched the surface or begun to focus on the worst, most gruesome and shameful of the industry corruptions and criminal activities that has easily affected and impacted upwards of several millions of Americans' lives within the past five years alone. One company alone may account for up to 500,000 or more Americans' lives. SKEPTICAL?  Then you will want to read the Nov 18 2004 Press Release from the NY Attorney General's Office regarding the UnumProvident announcement and referenced court stipulated agreement. Although it only addresses UnumProvident, it exemplifies and speaks to the fraudulent widespread mass denials of coverage, non-payment of claims and other illegal bad faith claims practices that is pervasive within the CLAIMS area and the CLAIMS Departments of many of our country's leading and largest insurers ... not to mention the alleged widespread cover-up as many state DOIs (Departments of Insurance) knowingly looked the other way for decades as they continue to this day to regularly receive millions of complaints against insurers. DOIs continue to deny the truth and continue to do anything to correct their lack of action for the years of cries for help from their fellow Americans that fell on their Department's deaf ears? The following is the recent Nov 18 2004 UnumProvident announcement and referenced court stipulated agreement:

    "UnumProvident Agrees To Reopen And Reassess An Estimated 215,000+ Claims Denials Going Back To Year 2000 ... And Per Request Agrees To Also Go Back To Include Years 1996-1999".
         CLICK HERE to read the official NY Attorney General important announcement.


    In spite of the politically correct thanks expressed by the NY Attorney General's Press Release to the NY Department of Insurance (DOI) and a few other state DOIs, FBIC has learned from sources that it was mostly the NY Attorney General's office's lead. The NY Attorney General's Press Release credits and thanks participation from the NY and MA state DOI along with the other state DOIs (FBIC Note: in order from the least to the most pressures necessary) by ME and TN that made this deal happen as quickly as it did. It is alleged that the TN DOI required more than substantial or considerable pressures to cooperate and participate. Unfortunately FBIC has to rescind its previous earlier statement when it indicated the following: "Regardless, FBIC would like to thank NY, MA, ME, TN and other states DOIs and The U.S. Labor Department for doing jobs that probably others before them should have done ... We thank you." as FBIC has recently learned from a reliable source that neither the NY or MA Departments of Insurance (DOI) did any investigations into the wrongdoings and/or complaints submitted against UnumProvident in their own states.

    FBIC however would like to express its sincerest apologies to those affected by UnumProvident that are still living and with us, along with their families, for action that we know should never have happened and is long overdue which still awaits action, performance and adequate compensation which will hopefully be administered with compassion and in good faith. FBIC would also like to express its sincerest condolences to the family's of those affected whose loved one(s) are no longer with us and may have past as a result, esp. as they know the feeling of the indescribable horror they were put through at the hands of Unum. No American should have to be subjected through such an unnecessary horrible experience ... all for corporate profit and their own personal gains.

    Besides the devastating effect and impact that the widespread non-payment of claims practices and mass denials of coverage has on consumers and business claimants alike, their consequences have severely impacted our federal, state and local economies and tax bases as many hundreds of thousands and more businesses in the recent past and since 9-11 have been forced to close and cease operations as a result of their legitimate claims not being paid ... and has been proven to have reached a point where it has been acknowledged by the industry that it has become standard operating procedure for many insurers not to pay large claims ... the term "large claims" is and has never been defined as it relates and translates into dollar figures. (FBIC defines the referenced large claims not being paid from extensive research since 1996 as starting at $10,000 - 12,000 and up, but does not preclude many 4 digit dollar amounts that are not being paid or paid properly as bad faith insurers know these amounts to be too low to attract attention and the service of an attorney).

    Businesses and others with significantly larger claims have no choice but to wait for litigation to conclude in order to collect on their claims. The settlement amount reached by the courts after years, a decade, less or more of litigation has passed, is usually inadequate for most of the businesses to restart operations even moreso after costs and attorneys fees are paid ... NOT A GOOD THING FOR THE  U.S. ECONOMY AND OUR COUNTRY.  Furthermore, FBIC has received many requests from other countries outside the U.S., primarily English speaking consumers and media, to expand our operations to their countries (i.e. Canada, United Kingdom, Etc.) as they represent that they have the same insurance related claims problems, insurer misconduct and unethical practices in their countries as we have in the U.S. and by many of the same largest U.S. bad faith insurers ... NOT A GOOD THING FOR OUR COUNTRY AND U.S. INTERNATIONAL BUSINESS RELATIONS.

  • Dec 07 2004 News ... As the ongoing insurance industry investigation proceeds and expands, and according to guilty pleas, corroborating testimony and extensive evidence in-hand at this time, it has become increasingly evident if not proven that the unlawful insurance industry corruption and fraudulent practices: (1) are widespread and endemic to both the SALES and CLAIMS areas and departments of many of our country's leading and largest insurers, (2) include many different lines of insurances, (3) extends throughout many if not most all of the country's more populated U.S. states and to a number of other countries and foreign shores.

  • Dec 09 2004 News ... FBIC has learned through reliable sources, that the SEC is focusing most of it's Agency's investigatory efforts on potential problems that may exist with the improper use of the financial engineering instrument referred to as "finite reinsurance" (aka non-traditional reinsurance, aka mitigation loss insurance), being used by publicly traded companies that may allegedly be hiding excessive and inappropriate amounts of debt and losses on their financial statements and reports.  Furthermore, that SEC Chairman Donaldson is working closely with NY Attorney General Spitzer's Office in this area since first announcement of the investigation was reported o/a Nov. 16. FBIC's own investigations and corroborating evidence further confirms there being some exceptions where investigations into select companies may not be of interest to both agencies. Reports indicate that the legality of the use of the financial instrument does not appear to be in question. What appears to be in question for companies purchasing the insurance is where the line is drawn to differentiate its proper from improper use. It appears that the use of the insurance instrument product in some cases, in addition to where it may have been used to distort financial results or where it can be demonstrated that it was used deceptively or improperly can be used as the basis to determine its improper use. Reports from ongoing state and federal investigations as to past and present purchasers of the insurance-reinsurance product and financial instrument include major insurance companies and some other large companies. It is not clear as to whether the underwriter or insurance company selling the product may have related legal exposure into the purchaser's improper use. It was reported October 22, 2004 that AIG was notified by an Indiana U.S. federal prosecutor that it is a target of a federal grand-jury investigation into the insurance product.

    (more) Dec 09 2004 News ... Many of the companies first to be subpoenaed by the NY state Attorney General's office expanding investigations into the "widespread fraud and corruption found in the insurance industry" initially announced Oct. 14 by the NY Attorney General's Office when it further announced legal actions taken against Marsh & McLennan, and named four insurers AIG, Hartford, ACE and Munich American Risk Partners as participants and implicating others. Many of the subpoenaed companies have issued statements indicating their company's cooperation into existing insurance industry investigations to also include a growing number of other state Attorney General offices. FBIC reports, as indicated on this website, that so far the investigations have expanded into five different areas of insurance covered under Property & Casualty and Health & Life insurance. FBIC has learned that the level of cooperation by some companies upon receiving a subpoena or hearing of an announcement of a new investigation is alleged to be much more than cooperative, as an unknown number of insurance companies have rushed to the NY Attorney General's Office to be first or among the first to tell of what they know and admit participation and guilt in hopes of getting consideration for receiving lighter penalties and having their charges reduced.

    (more) Dec 09 2004 News ... Hartford #1 To The Doorstep Of The (CT or NY) Attorney Generals Offices ... Amongst those alleged to be the top contender in the running to be first at the doorstep of the (CT or NY) Attorney Generals offices is The Hartford. The Hartford Group owns a number of insurance companies that comprise two major Operating Units that cover "Property & Casualty" insurance and "Life & Health" insurance. The Hartford Group, between both Units have been reported to have been served with numerous subpoenas covering 4 of 5 as of this time of the growing number of areas of insurance under investigation  in the ongoing investigations into insurance industry fraud and corruption reported in depth on this website. It is difficult to determine just how many subpoenas in total have been served upon The Hartford, between the SEC, NY Attorney General's Office and the other state Attorney General offices investigations.  According to individual reports, research and to the best of calculations, so far, it appears that in the race for receiving the most subpoenas Hartford is the clear front-runner by a wide margin having received the highest number of subpoenas with a substantial lead over the distant second place contender, ACE American and ACE Limited, a Bermuda based insurance company. Although The Hartford may be considered a major medium sized insurer, it pales in size and is considerably smaller (by possibly some 10 times or more) as compared to other much larger insurers being investigated that have received far fewer subpoenas does not bode well for Hartford in the future with investigations being in their early stages. With Hartford expected to being #1 and in the lead regarding unlawful and illegal practices in the SALES area of the insurance business speaks equally as bad for Hartford's having the worst record for not paying claims and engaging in other illegal claims practices in its well established #1 ranking in the CLAIMS area which it has successfully maintained for the past four years straight.

    FBIC has reported a number of companies that have already admitted to guilty pleas with their being no mention of a few other companies under investigation along with The Hartford. This is generally the case when those that are caught first, respond quickly and admit to guilt of criminal acts, and are either cooperating with the prosecution, providing evidence implicating the guilt of others which is expected to be the case with the Hartford having been served with so many subpoenas. Many corporate CEOs and criminal individuals have learned from past examples through the past few years and moreso with Spitzer-type prosecutions where the company in these cases gets hit with a big fine but many of the individuals responsible for the crimes walk away without doing a day of jail or prison time and in many cases the company winds up ultimately paying for the defendant's fines and attorneys fees.

    In short time with no ongoing oversight, it sooner or later can easily return to profitable business criminal activities back as usual. This is clearly proven not to be the mark of true leadership if the prosecution authority has real and genuine interest in stopping the criminal activities from reoccurring but is moreso the mark of political officials with aspiring personal agendas.  Although these type of prosecutions are questionable and may be acceptable these days on a state Attorney General level, it is highly doubtful it will more than certainly become an issue for the individual in future elections for higher position. Then the basic question arises did the Attorney General running for higher elected position do this for the people and the government or was it done for personal gain ... and the electorate has most recently shown that they vote on the most basic of principles.

    Of what has been reported, is known, or indicated in the subpoena, The Hartford to date has been subpoenaed as it relates to the ongoing investigations of alleged fraud and unlawful acts, illegal practices associated with or to include violations that started with the New York Attorney General Oct. 14, 2004 announcement, complaint and lawsuit against Brokerage Firm Marsh & McLennan (MMC) primarily related to the Property & Casualty area. The NY Attorney General's office indicated in his press release and/or complaint that "The Hartford is named in the complaint and lawsuit as participants in steering and bid-rigging" and indicates that such illegal criminal acts, fraud, antitrust violations and anti-competitive practices cheat customers and result in customers paying inflated prices. Other subpoenas so far served upon the Hartford may allegedly include related requests for information that may or may not have been reported or is yet not known to the public, requests for information and charges relating to similar acts, broker compensation, kickbacks and other charges.

  • Multiple, Possibly Upwards of 20 States Attorneys General Join And Coordinate Forces, Begin Their Own State's Investigations Into Many Different Areas Of Improper Sales Practices, Issue Subpoenas, Bring Lawsuits Starting With NY Attorney General Spitzer Lawsuit Against Marsh & McLennan On  October 14, 2004 Of  Criminal Frauds Charging, Illegal Kickbacks and Contingent Commissions), Illegal Bid-rigging, Antitrust Violations, And More.  There are numerous and a growing number of Our Countries Largest And Leading Insurance Companies' Improper And Fraudulent Practices Being Exposed, that have Criminal Implications for some Executives at or near the very Top of these Companies Management. There are an increasing number of Guilty Pleas as Employee Casualties and Resignations Mount As NY And Other States Attorney Generals Ongoing Related Probes, Charges And Outcomes Continue: