Like a Good Neighbor? State Farm Hasn’t Always Lived Up to That Claim. Here’s What Michigan Policyholders Can Do About It.

The recent murder in New York City of Brian Thompson, CEO of UnitedHealthcare, is still being talked about nationwide. Some people believe the killer was motivated by that insurance company’s apparent reluctance to pay claims and reputed poor treatment of consumers, citing the words “deny,” “defend,” and “depose,” which were inscribed on bullet casings found at the crime scene. Subsequently, a nationwide discussion of negative insurance company tactics has arisen, with many Americans even expressing sympathy for the New York shooter.

Here in Michigan, another well-known insurance company – State Farm – has been widely suspected of employing similar methods to make it difficult, if not impossible, for accident victims to receive prompt and fair compensation for their injuries. Indeed, as Mike Morse Law Firm attorney Jake Yeater discusses in an in-depth article published by the Michigan Association for Justice, many State Farm customers who find it necessary to make claims on their policies “will see an early termination of benefits, extravagant investigations into their claim, their families and doctors will be deposed in marathon discovery depositions, unreasonably low settlement offers will be made, and (more likely than not) they will be exposed to the risks of a trial—and being stuck with a mountain of medical bills if they happen to lose.”

Mr. Yeater’s comprehensive article goes into great detail explaining how and why State Farm has used a program ironically labeled “Advancing Claims Excellence” (ACE) to pad its profits at the expense of innocent policyholders. Essentially, as Mr. Yeater describes, State Farm regularly sought to require “Independent Medical Examinations” (also known as “Defense Medical Examinations”) in a continuing effort to delay or deny paying policyholder benefits over a period of many years.

According to Mr. Yeater’s research, widely accepted statistics from the American Academy of Physical Medicine and Rehabilitation show that an expected rate of fraud in auto insurance Personal Injury Protection (PIP) claims is around 6 percent – yet State Farm was requiring that its injured policyholders undergo grueling Defense Medical Examinations (DMEs) up to 90 percent of the time… most likely in attempts to delay or entirely avoid paying Personal Injury Protection (PIP) benefits to its injured Michigan no-fault insurance customers.

What’s more, even though State Farm asserts that it has discontinued the ACE program, the insurance company’s so-called “quality reviews” continue to put significant burdens on accident victims, who find themselves caught in a vice between their once-trusted insurer withholding compensation, and their family healthcare providers who are rightfully demanding payment for the lifesaving medical services they’ve performed.

Advice on Dealing with State Farm (or Other) Insurance Problems

Fortunately, you don’t have to sit still and be a victim if you find yourself in this kind of “Catch 22” situation. There are several useful resources at your disposal that can help you deal with State Farm (or any insurance company that might prove to be untrustworthy).

The first is your own insurance agent. As the customer-facing representative of the insurer, your agent has a vested interest in keeping you and other policyholders happy. After all, negative online reviews can have a definite impact on the agent’s future business and reputation in the community at large. Calling out an individual agent (or even an insurance company) on social media for bad customer service or a poor response to a claim can be a valuable tool in helping consumers level the playing field. But, to avoid legal issues, be very careful that whatever you choose to post publicly online is 100 percent accurate and truly represents your experiences. Remember that insurance companies have aggressive legal teams and deep pockets, which leads us to a second suggested “line of defense” you might wish to contact if getting in touch with your insurance agent doesn’t pan out.

And that is to employ the assistance of the Michigan Department of Insurance and Financial Services (DFIS), which has a dedicated email address for consumer complaints, and an online complaint reporting tool you can use to document your experiences. However, as you might imagine, this state office has limited resources, and with all the complaints on their docket it could take quite a while before your issue is addressed. In the meantime, you might be receiving billing notices from doctors and hospitals, or even scary dunning letters from debt collectors demanding payment. So be sure to make detailed notes about any phone calls you receive or make, and to keep paper copies of everything you submit to DFIS, in the event you need to take another step to protect yourself from an insurer’s bad actions – which is to contact an attorney experienced in dealing with this type of problem.

You probably know just where to go for that – your friends here at Mike Morse Law Firm. In fact, we’ve already published quite a bit of detailed advice on the subject of insurance company delay tactics, not to mention how to effectively deal with insurance adjusters, and best practices to follow with insurance companies after you’ve been involved in an accident. We’ve also discussed the Michigan Policyholder Bill of Rights, which insists insurers act in good faith toward their policyholders – something we firmly support both as attorneys and as Michiganders ourselves.

In summary, we do believe that most insurers genuinely attempt to help their customers regain their health and resume their lives following an accident. But we urge you to check out each of the articles that we’ve just mentioned ahead of time so you can be prepared if you ever do find yourself in an unexpected battle with your insurance company. And if it turns out you’re victimized by State Farm or any other licensed Michigan insurer – know that you have a team of strong, trusted allies here in Southfield (not to mention our other offices in Sterling Heights and Detroit). To get us working on your side, call 855-MIKE-WINS (855-645-3946) or click right here right now!

Content checked by Mike Morse, personal injury attorney with Mike Morse Injury Law Firm. Mike Morse is the founder of Mike Morse Law Firm, the largest personal injury law firm in Michigan. Since being founded in 1995, Mike Morse Law Firm has grown to over 200 employees, served 40,000 clients, and collected more than $1.5 billion for victims of auto, truck and motorcycle accidents. The main office is in Southfield, MI but you can also find us in Detroit, Sterling Heights and many other locations.