For Immediate Release – Oct. 12, 2007

Former Insurance Adjuster Reveals How Claims are Denied

Employees received bonuses for denying claims

SEATTLE – Today the Approve 67 campaign launched a television ad featuring a former insurance adjuster’s testimonial of how the insurance industry forces employees to delay and deny claims.

To view the ad and read supporting materials, go to www.approve67.org/node/95.

Robert Dietz of Arlington, Wash., a Farmers Insurance employee for 14 years, explains in the ad that insurance companies implemented computer programs designed to consistently lowball claims to increase company profits. Employees’ performance was measured based on their use of this software and incentive programs, such as Farmers’ “Quest for Gold,” which financially rewarded claims adjustors for generating profits, according to insurance company memos.

“Rob’s testimony is proof that the insurance industry does not play by the rules,” said Sue Evans, Approve 67 spokesperson. “The insurance industry has poured almost $10 million to fund a campaign that attacks its own customers when they come forward to expose profit-motivated, unfair behavior.”

Independent investigations by CNN, Bloomberg.com and the Seattle Post-Intelligencer validate Dietz’s account of intentionally under-paying insurance claims. Every year, thousands of Washington citizens file complaints with the Office of the Insurance Commissioner because their insurance company delayed or denied their legitimate claim.

Referendum 67 would make it illegal for the insurance industry to unreasonably delay or deny legitimate insurance claims. Only those insurance companies that choose to treat their customers unfairly by delaying or denying legitimate claims would be affected by Referendum 67’s penalties.

Endorsers of an approve vote on Referendum 67 include Gov. Chris Gregoire, Insurance Commissioner Mike Kreidler, and more than 85 organizations, including seniors, firefighters, teachers and consumers.

Referendum 67 will be on the Washington state ballot in November 2007. The insurance industry has given $9.7 million to reject the consumer protections found in Referendum 67.


# # #

Contact:
Sue Evans
206.792.0408
sevans@approve67.org

¹CNN: “Auto insurers play hardball in minor-crash claims” http://www.cnn.com/2007/US/02/09/insurance.hardball/index.html

Bloomberg.com: “Home Insurers' Secret Tactics Cheat Fire Victims, Hike Profits”
http://www.bloomberg.com/apps/news?pid=20601170&sid=aIOpZROwhvNI

Seattle Post-Intelligencer: “Does insurance company 'low-ball' pain and suffering?”
http://seattlepi.nwsource.com/local/122105_colossus15xx.html