Farmers New World Life Insurance Company
"Farmers New World," the insurance company more formally known as Farmers New World Life Insurance Company, is a subsidiary of the Farmers Insurance Group of Companies. As an insurance "brand," Farmers is one of the most established companies in the U.S., founded in the 1920s. Farmers New World currently provides 1.5 million life insurance policies, ranking among the top ten life insurance companies in terms of new sales.
Farmers New World and Bad Faith Insurance Claims
Despite its popularity, there have been many reports of bad faith insurance practices by Farmers New World. For example, in 2006 the respected publication Consumer Reports ranked Farmers as one of the poorest performers regarding the practice of paying claims within 30 days.
The Highest Number of Complaints Among Carriers
In addition, according to the various state insurance commissioners, Farmers Insurance had the most complaints listed among all insurance companies, in:
- Arizona
- California
- Colorado
- Oregon
- Texas
- Washington
The marketing information firm J.D. Power and Associates also gives Farmers Insurance very low marks for claims handling.
Settlement for Recission and Denial of Death Benefit
An example of the bad faith issues alleged by policyholders is the case Gonzalez vs. Farmers New World Life Insurance Co., in which the insurance company settled the charges of recission of a life insurance policy and denial of a $100,000 death benefit. Farmers New World paid the plaintiff $250,000.
Many Types of Insurance Bad Faith
There are many ways that an insurance company can act in bad faith, such as:
- Unreasonably delaying the payment of benefits
- Not promptly or thoroughly investigating an insurance claim
- Wrongfully denying a claim
- Using unreasonable interpretations of the terms of an insurance policy
- Unreasonably denying benefits, or shortchanging benefits
- Refusing to settle a case
Getting Legal Help
If you feel that your insurer—Farmer's New World or another company—has acted in bad faith, contact us today to speak with an attorney in your area who is experienced in successfully representing victims of bad faith insurance.
Be assured your matters will be in experienced & caring hands.
