FBIC Ranking System Research Sources And Methodology

FBIC Ranking System Research Sources.  To determine FBIC Good Faith and Bad Faith Rankings, FBIC utilizes each of the states DOI (Department Of Insurance) complaint ratios and/or rankings as available as a beginning in a lengthy process. DOI complaint ratios and complaint rankings alone have very little or no reflection on insurers "bad faith insurance" practices and their wrongful denials, delays, discounting and non-payments of claims.  If anything, DOI complaint ratios, rankings and/or indexes are misleading to the public, near completely useless and have no validity for reasons which are addressed herein later on. FBIC merely utilizes state DOI complaint ratios as available as a beginning and initial first step representing one of a many steps process and extensive work involved in its methodology in determination of FBIC's Good Faith and Bad Faith ranking system. FBIC collects, uses and works with real data, records and information, some of which is of public record and some of which is exclusive and proprietary to its organization and collected from individuals and businesses through its website “www.badfaithinsurance.org” and other confidential sources. Accordingly, in addition and in further determination of FBIC rankings, FBIC utilizes state and federal court records, the frequency, flagrancy and extreme nature of insurers bad faith actions, practices and complaints and statistical data from its own online "Bad Faith Survey" complaints submitted by consumers and businesses against insurers.  Furthermore, FBIC utilizes bad faith related information pertinent to insurers as provided by plaintiff insurance attorneys, independent public adjusters, insurance agents, employee whistleblowers and additional other sources which collectively are all indicative of an insurance company's bad faith record, an insurer's unwillingness to pay or willingness not to pay and deny payment of claimants and policyholders claims. FBIC ranks Insurers, Insurance Company Groups and their Member Companies as available information permits at various and different periods of time. The FBIC Ranking List is subject to ongoing analysis, change, and in the future will be updated weekly.

FBIC Ranking System Methodology.  FBIC rankings are based on extensive and various breach of contract and bad faith insurance related research information and sources. FBIC utilizes its own proprietary complaint ratio-ranking system methodology in determining its bad and good faith insurers rankings. In determining FBIC's published ranking list of Bad Faith and Good Faith Insurers, when research information on insurers breach of contract and bad faith insurance fraudulent practices are indicated or found where there is a pattern and frequency of fraudulent practices, the FBIC system penalizes and automatically places such bad faith insurers to the lower end or bottom half of the bad faith insurer list downgrading the bad faith insurer's complaint ratio. Accordingly, FBIC also incorporates a weighted system to reflect the severity, flagrant and extreme nature of the insurer's bad faith actions and further adjusts the insurer's bad faith complaint ratio according to the fraudulent bad faith schemes and practices utilized by the bad faith insurer(s). FBIC then uses a comparative complaint ratio defined by a decimalized index system for the bad faith insurers which at this point are grouped at the bottom of the list maintaining its numeric decimalized complaint ratio which determines each insurer's ranking. When research information indicates for insurer(s) that no breach of contract and bad faith insurance practices are found to exist, accordingly such perceived good faith insurers are automatically awarded a bonus and conversely placed to the higher end of the top half of the good faith insurer list using the same complaint ratio system. FBIC then takes into consideration and applies the same process methodology according to the insurer's degree of bad faith practices and complaints against it and good faith and "utmost" good faith practices and uses the same comparative complaint ratio index system for those insurers grouped at the top half of the good faith list as those at the bottom of the bad faith list(s) to determine each of the insurers rankings. (Note: complaint ratios and indexes in general are determined by comparing the number of complaints received against an insurer for a specific line of insurance [i.e. auto, homeowner, life, health] relative to the total number of complaints received by all insurers for the same line of insurance ... and the insurers market share using the dollar amount of premiums or amount of business written by an insurer to the total amount of premiums written by all insurers for the same line of insurance).  FBIC seeks to maintain objectivity in its Insurer rankings.

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