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Farmers-Insurance
Farmers Insurance
Group is a provider
of insurance
management services
and a holding
company. It is the
third-largest writer
of both private
passenger automobile
and homeowners
insurance in the
United States.
The Farmers
Insurance Group of
Companies is based
in Los Angeles,
California, and
operates in 41
states. The company
is now a wholly
owned subsidiary of
Zurich Financial
Services, Zurich,
Switzerland.
History
In 1928, Thomas E.
Leavey and John C.
Tyler founded the
first Farmers
Company in
California.
In 1988, British
American Tobacco
Industries attempted
a takeover bid on
the company, but the
bid was rejected. A
year later, the
Farmers Board and
stockholders finally
agreed to be
acquired by BATUS
for $5.2 billion.
Farmers Group became
part of the B.A.T.
financial services
group.
In September 1998,
the Zurich Financial
Services Group was
created from the
merger with the
financial services
business of B.A.T.
Industries Through a
dual holding
structure, Zurich
Financial Services
was owned 57% by
Swiss-quoted Zurich
Allied AG,
representing the
former shareholders
of Zurich Insurance
Company, and 43% by
London Stock
Exchange Allied
Zurich p.l.c., the
de-merged financial
services interests
of B.A.T. Industries
p.l.c.
In October 2000, the
Zurich structure was
simplified and
unified under a
single Swiss holding
company. Allied
Zurich and Zurich
Allied shares were
replaced by shares
of the newly
incorporated Zurich
Financial Services
with a primary
listing on SWX Swiss
Exchange (ticker
symbol: ZURN) and a
secondary listing in
London (LSE: ZURN).
Zurich Financial
Services American
Depositary Receipts
(ADRs) are traded on
the American Stock
Exchange (AMEX:
ZFSVY).
In March 2000, the
Farmers Insurance
Group of Companies
merged with Foremost
Corporation
(Foremost Insurance
Company), a leading
writer of
manufactured homes
and a prominent
insurer of
recreational
vehicles, boats and
other specialty
lines.
Criticism
Complaints to state
insurance
departments
In 2006, Farmers
Insurance received
the highest number
of complaints to
state insurance
departments in
Washington and
Oregon.
Lawsuits
In Goddard v.
Farmers Insurance
(2008), Farmers was
ordered to pay $2.5
million for handling
a claim with bad
faith and
"stonewalling"
during settlement
negotiations. The
original punitive
damages award was
$20 million.
In Betty Jo Walker
v. Farmers Insurance
(2007), Farmers was
fined $3 million
dollars for not
defending a pair of
limited-income
homeowners from a
negligence claim.
In Bell v. Farmers
Insurance Exchange
(2004), Farmers
Insurance was sued
for failing to pay
overtime to its
claims adjusters.
The company settled
and paid out over
$200 million to its
employees.The
company claimed that
administrators were
exempt from
overtime. At the
time, this was the
largest overtime
class action suit in
the United States.
In Ballard v.
Farmers Insurance
(2003), the company
was sued for failing
to cover repairs for
a water leak which
eventually led to
toxic mold growing
in the owner's home.
The original
settlement was for
$32 million, but was
reduced to $4
million.
In 2005, the company
refused to pay a
claim on a car
accident because the
accident was
allegedly caused
intentionally by
another driver.
Despite Farmers'
claims, the state of
Washington ordered
the company to pay
the claim
- Courtesy Wikipedia
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