Practice Areas

WHY DOES THE INSURANCE INDUSTRY DO THIS?

A common question is why would a billion dollar insurance company try to cheat its insured out of a few thousand dollars on an insurance claim. It is actually quite simple -- it is much easier for an insurance company to steal and cheat a thousand insureds out of a thousand dollars per insurance claim, than to steal and cheat one insured out of a million dollars on one insurance claim. There are thousands of insurance claims made daily. Sadly, the insurance industry intentionally makes the insurance claim process difficult so that very few insured parties can contest unfair insurance claim decisions or unfair insurance claims handling procedures without the assistance of an insurance attorney.

The Insurance Industry's playbook is really about delay, deny, and lie.

When there is a disaster, the insurance companies that homeowners count on to protect them from financial ruin routinely pay less than what insurance policies promise. "It's despicable not to make good faith offers to everybody," says Robert Hunter, who was Texas Insurance Commissioner from 1993 to 1995 and in 2007 was insurance director at the Washington-based Consumer Federation of America. "Money managers have taken over the whole industry." "Their eyes are not on people who are hurt but on the bottom line for the next quarter."

California Lt. Gov. John Garamendi, California's insurance commissioner from 2002 to 2006, imposed $18.4 million in fines against insurance companies for mistreating customers. "There's a fundamental economic conflict between the insurance customer and the insurance company," Garamendi says, "That is, the insurance company doesn't want to pay. The first commandement of insurance is, 'Thou shalt pay as little and as late as possible.'"

"Good hands or boxing gloves."

In September 1992, Allstate Insurance Company, the second largest United States home insurer in 2007, sought advice on improved efficiency from McKinsey & Co., a New York based consulting firm that has advised many of the world's biggest corporations, according to records in at least six civil court cases. State Farm and Farmers Group, Inc., the third largest homer insurer in the United States in 2007, also hired McKinsey as a consultant according to court records.

These insurance bad faith lawsuits have produced nearly 13,000 pages of documents including Power Point slides which showed that McKinsey developed methodes for these insurance companies to become more profitable by paying out less in claims, according to videotaped evidence presented in Fayette Circuit Court in Lexington, KY, in a civil case involving a 1997 car accident.

For over 57 years, Allstate has advertised its employees as the "Good Hands People, telling insurance customers that Allstate would take care of them in times of need. The McKinsey slides had a twist on the slogan. One slide prepared for Allstate Insurance Company was entitled, "Good Hands or Boxing Gloves." According to documents produced during these insurance bad faith lawsuits, McKinsey advised Allstate Insurance Company to first make a low offer when a policyholder files a claim. Allstate Insurance Company only treats the insurance consumer with "Good Hands" if they accept the low offer. If the insurance consumer protests and hires an insurance attorney, Allstate Insurance Company treats the insurance consumer with "Boxing Gloves."

Another McKinsey slide displayed in a Kentucky hearing featured an alligator with the caption "Sit and Wait." The slide says Allstate Insurance Company can discourage insurance claimants by delaying insurance settlements and stalling court proceedings. By postponing payments, insurance companies can hold money longer and make more on their investments -- and often wear down insurance clients to the point of dropping legal challenges. Unfortunately, McKinsey's advice sparked a turnaround in Allstate Insurance Company's finances to the detriment of insurance claimants everywhere. Allstate Insurance Company's profits rose 140 percent to $4.99 billion in 2006, up from $2.08 billion in 1996. Sadly, insured consumers throughout the entire United States, including Arizona, have losses in property, homes, and personal suffering that paid for Allstate's and other insurance companies sky-rocketing profits.

Click here for the Truth About Insurance Companies.

THE INSURANCE CLAIM HANDLING PROCESS

You must know your rights and obligations under the insurance contract and Arizona insurance law in order to protect yourself from a dishonest insurer during the insurance claims handling stage. Insurers have the right to deny an insurance claim if the insured has not lived up to their obligations under the insurance contract. You should notify your insurance agent immediately if there has been an incident requiring you to file an insurance claim, and you should review your insurance contact to identify the relevant language. If you have any questions about insurance coverage, your rights, or your obligations, you should contact a Scottsdale insurance bad faith attorney immediately. If you choose not to contact an insurance bad faith attorney immediately, please make sure you document all telephone calls with your insurer, and to maintain a complete file regarding the entire insurance claim process including photographs, copies of your insurance contract, and copies of all correspondence exchanged with your insurance adjuster. This will help your insurance bad faith attorney, with offices in Phoenix and Scottsdale, Arizona, when you eventually hire a bad faith attorney to protect your rights and hopefully keep you from damaging your insurance claim beyond help.

WHEN SHOULD YOUR HIRE A SCOTTSDALE INSURANCE BAD FAITH ATTORNEY?

There is no harm in contacting an insurance bad faith attorney immediately. We have offices in Phoenix and Scottsdale, Arizona and have handled claims throughout the entire state of Arizona with an emphasis in the Phoenix Metro area so give us a call at (480) 874-2918. The bad faith attorney can help you appropriately present your insurance claim to your insurance company so that you avoid potential problems, and the insurance bad faith attorney can explain to you your insurance rights and your contract obligations. However, if your insurance company starts making multiple document requests for the same or similar information, demands that you undergo a sworn statement or examination under oath prior to accepting your insurance claim, or an examination by an expert of the insurance company's choice, you should immediately contact a Scottsdale insurance bad faith attorney. If you believe your insurance company is delaying payment on your insurance claim or your insurance company has wrongfully denied payment for your insurance claim, you have a right to seek independent representation with an insurance bad faith attorney and to seek compensation for insurance bad faith from your insurance company.

Scottsdale insurance bad faith attorney Shane Harward represents the interests of insureds in all areas, including but not limited to, insurance coverage disputes, examinations under oath, subrogation issues, gap insurance claims, insurance policy limits stacking, underinsured motorist and uninsured motorist insurance claims, health insurance claims, property damage insurance claims, liability insurance claims, no fault insurance claims, medical payment insurance benefit claims, unfair insurance claims practice violations, and insurance bad faith litigation throughout the state of Arizona including, but not limited to, Phoenix, Scottsdale, Mesa, Tempe, Chandler, Glendale, Gilbert, Sun West, Sun City, Tucson, Flagstaff, Kingman, Bullhead City, Yuma, Lake Havasu, Fountain Hills, Anthem, Ahwatukee, Carefree, Cave Creek, Gold Canyon, Bisbee, Sierra Vista, Cochise, Paradise Valley, East Valley, Maricopa, Pima, Pinal, Gila, White Mountain, Heber, Payson, Prescott, Forest Lakes, Apache Junction, Avondale, Queen Creek, Benson, Black Canyon City, New River, Buckeye, Casa Grande, Coolidge, Cottonwood, Douglas, Florence, Gila Bend, Goodyear, Greer, Lakeside, Guadalupe, Holbrook, Huachuca City, Oro Valley, Overgaard, Avra Valley, Parker, Peoria, Pinetop, Pine, Prescott Valley, Quartzite, Strawberry, Safford, Show Low, Sun City West, Sun Lakes, Superior, Surpise, Snowflake, Tombstone, Wickenberg, Winslow, Wilcox, Williams, Young, Youngtown, and surrounding areas.

To learn what an insurance bad faith lawyer can do to help you, please contact us today for a free initial consultation. We offer reduced rates to those contacting our attorney through the Internet.

For immediate assistance of an insurance bad faith attorney call us at 480-874-2918. We look forward to helping you.

For more information about car accident insurance claims in the third party insurance setting, please visit our Motor Vehicle Accident Center.

Law Offices of Shane L. Harward PLC
Arizona Personal Injury Attorney
Scottsdale and Phoenix Insurance Bad Faith Attorney
Arizona Wrongful Death Lawyer
10575 North 114th Street, Suite 103
Scottsdale, Arizona 85259

Phone: 480-874-2918
Facsimile: 480-588-5063
Email