Documents published by the California Senate on this site

From Sat Jun 17 23:18:45 2000
Date: Sat, 17 Jun 2000 10:15:44 -0400
From: The Insurer Crime Outline 
To: "" 
Subject: The Insurer Crime Outline

We Urge You to Forward This Newsletter to Anyone Who Might Benefit

The Insurer Crime Outline
     eXposing America's Bandit Industry


Please visit our site at


"Defiance to Tyrants is Obedience to God."



Dear Jim Mooney, 

Thank you for your response and I apologize for not answering you 
sooner. I have a series of bad bad pain days and the WC doctors refuse 
to give me pain meds because "they don't want to be responsible for 
addictions" this is torture. My case has a year and a half history 
of baffling, confusing and non-existant health care. I have a workmen's 
compensation attorney but my health had declined and gotten worse 
with inapproriate and non-existant treatment. I have chronic pain 
and the insurance company does not recognize this as a disabling 
illness. I have been sexually assaulted by one of their doctors on 
their list, I have waited in waiting rooms for four to six hours 
for treatments they did approve. 

They did not approve my surgery date until the last minute .... they 
knew about it for three weeks and my whole surgery and prep location 
had to be changed. I have perscriptions from doctors recommending 
everything from TENS units to comprehensive pain management without 
approval from Kemper Insurance. It is just incredible what they are 
getting away with. 

My instincts tell me Kemper Insurance and the physicians have a play 
of racketering going on........these doctors will not treat the patient 
nor concern themselves with things like I have lost 37 pounds, I 
have no pain medications, I have not been appropriately diagnosed. 
I have never seen any chronic pain specialist in any field. It goes 
on and on. 

I am so grateful for your response by the way Walgreens just terminated 
my employment they had a "positon" opened where I would be standing 
and sitting. The last Workmen's Compensation doctor that I saw for 
eval told me and my mother the most I could do was just sit there. 
It is incredible and the story is worth the effort. Thank you for 
you time. 

God Bless Gina

************ PS appreciate the removal of my name and phone number 
they have me scared with the way they are already treating me 

Another letter from Gina -- this is the first letter, the previous 
one was the last we received.  This has already been posted but I'm 
including it for continuity. If you want to friends to reference 
it, it will be on the website at:


I am sending this to anyone who I feel can help me.....I ran across 
your sight and have bookmarked it. I have two company names for you 
to add to the list of companies that DO NOT follow through with what 
they advertise nor take care of their employees the name of the game 
seems to be either to frustrate the injured employee to the point 
they quit, try to return them to work when they can't' or pass the 
buck. Here is my story. 

I am trying to raise awareness into the problems of Workmen's Compensation. 
I have been on WC in the state of Florida for a year and it is unreal 
how much companies and the insurance companies they purchase have 
control in my life not to mention the neglect of care and compassion 
and lack of treatment I have suffered. Please at least read this 
if you don't want to publish it I understand but I am begging you 
to raise awareness so many people are suffering like me and have 
lost everything. 

Another Kind of Cold War: Workmen's Compensation State of Florida 

It's a promise to anyone employed in Florida. A promise that if you 
are injured while working your employer carries Workmen's compensation 
insurance that will provid you with timely and appropriate medical 
care in exchange you give up any type of recourse you exchange your 
entitlement of recourse for pain and suffering for appropriate and 
timely medical care. The problem is IT IS A LIE, chances are if you 
are on Workmen's compensation in the state of Florida you know exactly 
what I am talking about regardless of how small or large your injury 
was or is. If you are not on Workmen's Compensation for God's sake 
don't injure yourslef on the job! 

People lose family, houses, cars, property, are reduced to poverty 
level, and on top of that receive inappropriate medical care that 
produces pain and suffering for a lifetime. Welcome to being employed 
by the Sunshine state and the vast amount of forgotten injured employees. 
Yes, folks, the Workmen's compensation Laws are written by and for 
the benefit of insurance compaines, companies, and the medical world. 
Under the Workmen's Compensation Laws insurance companies have the 
right to: Wait as long as they want to provide apprpriate medical 
care Force you back to work at MMI (maximum medical improvement - 
translated into laymen's terms means you are not well the doctors 
just cannot do any more for you because your injuries are permanent) 
when not all injuries have been appropriately taken care of and they 
can cut off any type of medical treatment. Ignore injuries and then 
ignore the fact that by doing so the injuries get worse. 

Leave you for substantial amounts of time without appropriate medical 
care Cut benefits off if you are suffering in pain without appropriate 
care and they believe you should go back to work Cut benefits off 
regardless of the reasons you cannot go back to work Deem any symptoms 
directly related to your injuries as not their problem and give no 
treatment for them Are not responsible for doctors treatments, being 
rude, sexually harrassing you, not talking to you, pharmacies withholding 
medications, physicians refusing appropriate treatment, approving 
appropriate treatment etc., etc.,etc 

Where did I get this list from: 

I was prior to 3/16/99 a healthy woman. Was able to do any physical 
activity had no limitations, worked 40 plus hours a week for Walgreens 
as a front end cashier on my feet moving around stocking etc. Walked 
two miles from work, four miles a day and then could do whatever 
I wanted. Enjoyed family and friends weighed a healthy 137 pounds 
at five foot eight inches. Ate what I wanted had prior existing health 
issues that were asymptomatic because I had health insurance and 
was taking care of myself. Saw my family physician for a check up 
and kept up my appearance. I was happy and carefree able to take 
care of myself. I had benefits from Walgreens and NO HEALTH ISSUES.

Now after a year on Florida's wonderful Workmen's Compensation program 
I have chronic pain in eleven areas of my body, I have lost 27 pounds, 
would be homeless had it not been for my mother who has been drained 
financially and emotionally watching me go through this. Have had 
symptoms (some on and off some constant) including but not limited 
to: diaherra, vommitting, hives, blood in urine and stool, excruciating 
pain, swelling in various injury sites, an undiagnosised head injury, 
uncontrollable shaking the list goes on and on and on. They - Kemper 
insurance company and Walgreens my employer, say that there doctors 
have said I am ready to go back to work on a trial basis for four 
hours a day at Walgreens discretion. despite the symptoms listed 
above, that I am still on muscle relaxers, sedatives, and pain relievers 
despite the pain that I suffer despite the meds I am on. 

Oh...I see...forget the fact I cannot eat, I am severly depressed, 
I vomitt and have diaherra on and off or here's a good one then don't 
have a bowel movement for 10 to 12 days, despite I have lost 27 pounds 
or the fact that the pain is so excruciating I have contemplated 
killing myself. MY LIFE WILL NEVER BE THE SAME. I still have not 
had all my injuries diagnosised and/or treated, it's ok that was 
last year maybe this year will be better. My life as I knew it will 
never be again in exchange I am offered a chair behind a register 
at Walgreens for four hours a day when I cannot sit that long without 
being drugged out of my mind. Who else would hire me with these health 
issues.....would you, your cooperation, your organization hire me????

I cannot tell you how long I can work but I can tell you that after 
45 minutes the pain is excruciating, I cannot tell you if I will 
show up and it may be two to three days before I can take a shower 
oh and by the way don't forget it is hard to concentrate on muscle 
relaxants, sedatives and pain pills not to mention vomitting and 
diaherra. I don't have good days I have to force mental states of 
good days I AM IN PAIN all the time. I was told because I was aesthically 
pleasing no judge would help me, folks trees are aesthically please 
I am a human being although I don't feel very much like one at all. 
I AM NOT the only one who is trapped by these laws of Workmen's compensation. 
PLEASE if you work in the state of Florida help me to change the 
laws so insurance companies like Kemper Insurance and companies like 
Walgreens cannot work together to trap and ruin their emplyees lives....please 
don't end up like me.  

CYBERCOMMENTS: We have often mentioned how insurers will try to terrify 
their victim with intrusive surveillance and other measures, in order 
to get them to quit their claim, so we are not surprised when someone 
is scared. And she should listen to her instincts. HMO doctors will 
let you die in order to save the insurer money. That's NOT an exagerration 
or a hyperbole. 

We have also told you elsewhere how Worker's Comp is the worst fraud 
there is. If you think it will be there if you are injured at work, 
IT WON'T. You'll be denied, delayed, cheated, confused, lowballed, 
accused, and mistreated. Anything to avoid taking care of the claim. 
And this is common with nearly All insurers. There is something Seriously 
wrong with the Worker's Comp System. 

We have more details on this case, and contact info, for major media 
or law enforcement, should they choose to investigate (which we admit 
is rare. Insurers get away with murder every day of the week.) Here 
is some advice from another insurance company victim for Gina:


Oh, my God.  She's in a misery I can remember.  She should always 
take her mother with her when she sees the doctors, therapists, goes 
to hospital, whatever. This is very important.  With no witnesses 
to deter them they do terrible things to patients.  I know this for 
a certain fact.

About the pain meds, I can't offer much help.  I have a friend who 
used to work for a doctor and is very knowledgeable about pain meds. 
 She's done a load of research.  She's very, very busy but her email 
is If your friend wants to email her she may mention my name.  ( 
CYBERCOMMENTS: I removed the email since she is busy but will give 
it to anyone in need of advice on pain medication.) Madeleine might 
know of a doctor who will get her pain meds where she lives, depending 
on where that is. They are VERY hard to get no matter how much pain 
you are in.  BTW in my experience TENS is useless although a human 
being giving a good massage tends to increase endorphins.  Biofeedback 
might help but it takes time to master the techniques.

Depending on where you live you might go to an appropriate doctor 
in a big teaching hospital and insist on help.  Or get in touch with 
someone in the media where you live.  Sometimes there are sympathetic 
reporters who will push a story in an HMO's face on the air.  Write 
your story to Michael Moore at He's in-your-faced 
some big insurance companies and got treatment for people like you.

I don't know.  My heart breaks for you and I wish I could help you. 
Please email Madeleine.  She is one of the most giving and wonderful 
people in the world and she will understand your predicament completely. 
As I said, she's very busy and has a big family problem brewing right 
now, so don't be upset if she takes a few days to get back to you.

In the meantime try a rocking chair.  I mean it.  It helps a little 
at least by releasing more endorphins as you rock.  I sit in any 
chair and rock all the time.  It's the only way I can stand it on 
a day-to-day basis.

More later, Shelley



hope I can get this through iris here... N.Y. just passed a bill 
that bars out of state ime doctors, and wont let them recieve any 
higher pay than the standard going rates.  furthermore they must 
be licensed in that state.  major victory..  I am posting some more 
stuff on my website since Ralph Nader himself was here to help kick 
off a protest.  the big anchorage hospital just closed its doors 
to out of state i.m.e. docs, and canned a couple of their own.  little 
by little now I have met with local legislators to make criminal 
charges available to adjusters who injure people by with holding 
medical care, and letting the claimant sue as well.  this will show 
us who the corporate shills are in the capital..  iris



Consider the timing on State Farm's latest "premium refund" and Senator 
Escutia's release and publication of the CA DOI summaries.  "better-than-expected 
financial results"? That may be true, and we all know how that came 
about. Consider also the amount $1 Billion relative to their "espoused" 
surplus.  Last I heard, it was close to $70 Billion! If that were 
*all* the money, and there were not astonomical sums of money being 
sequestered and systematically drained from the Mutual company, this 
would be real money. It's cookie crumbs to these people.  Very credible 
people whom I know, estimate that trillions are being sequestered 
through several avenues of depletion.  This is not new, and has been 
going on for years.  The quite reasonable suggestion has been made 
that this could not have been going on without the complicity of 
our IRS.  Yet, more corruption lurks in the mud.

A real problem in auditing an insurance company is that use bookkeeping 
systems that have no relation to any standard system.  They even 
manage to keep their systems a secret, so DOIs have more than a difficult 
time trying to figure out how much they really make - spread that 
over 50 States and half a dozen provinces of Canada, and they have 
more "Lebensraum" than enough flexibility to accomplish this magic 

The old Mafia was concerned with "Money Laundering"; now, our new 
Mafia has solved the problem of "Money Soiling".

And just to clarify what "sequestered" means ;')

They send money to cronies for "business expenses".

A typical way: Lay off thousands of staff in your offices and "contract" 
the office support function with a good friend who performs these 
services at an outrageous cost.  Some of the funds are tucked away 
in a nice bank account.

Million of variations on this theme.  Another way is to contact with 
banks or brokers for services over and above the norm, services being 
nonexistent, money transferred being real. 

Then there are those endless analyses by various consulting firms, 
with vague but enthusiastic results that could have been written 
Before the "study," at a million bucks a pop.

Kickbacks and Payola, if you want the old terms for it.  



Date: Sat, 17 Jun 2000 04:11:36 -0400 (EDT)
From: Flash  
To: Senator Martha Escutia  Subject: 
DOI Summaries

Dear Senator Escutia,

Although I am a resident North Carolina and not one of your constituants, 
I want to tell you how elated I am at your breathtakingly courageous 
actions concerning the release of the summaries of the California 
DOI investigations, as well as your stand on investigating Commissioner 

As you undoubtedly know, you have opened a can of fetid worms; I 
can only hope that your actions will stimulate further investigation 
of the insurance industry in this contry and its corruption of DOI 
commissioners in other States.  This is long overdue; too many people 
have been destroyed or even killed through the behaviors of insurance 

The largest insurer in our country, State Farm Mutual Automobile 
Insurance Company (SFM), with all its incorporated, wholly owned 
subsidiaries has been, according to my research, a corrupt entity 
since inception.  I note that it is SFM who has announced its intention 
of legal proceedings to suppress the summaries posted on the Californian 
Senate's webpages.  Rest assured that, no matter what, they will 
not be suppressed, thanks to the Internet.  I have mirrored those 
documents already, as have several other sites.  I provide a PostScript 
version as well.

That you might know what State Farm is I list the following cases:

Campbell v. State Farm Mutual Automobile Insurance Co., No. 890905231, 
slip op. at 53 (Third Judicial Dist., Salt Lake City, Utah, Aug. 
3, 1998)

Middler v. State Farm, Superior Ct. Calif. County of Los Angelos, 
NW Dist. No. LC021140

State Farm Fire & Cas. Co. v. Superior Court (Taylor), No. B106120 
(Cal. Ct. App. Apr. 22, 1997)

Betty Olson v. State Farm Mut. Auto. Ins. Co.; No. CIV 96-06105 (Ariz. 
Sup. Ct.)

I cannot speak on the other insurers personally, but I can speak 
about State Farm with personal experience.  The bottom line of that 
experience is that State Farm has destroyed both businesses and body; 
it alone has given me with an atrophied spinal cord in the cervical 
area in payment for permiums.

My business partner and I have filed a suit in Federal Court Western 
District of North Carolina 2:99cv44, with causes of action that include 
Federal RICO violations.  We have not found an attorney who would 
take such a case, and so have proceeded pro se.

The Mafia never dreamed of such power as State Farm possesses. If 
you have the time to read one of the above opinions, let it be that 
of Judge Bohling's findings and opinions in the Campbell case. The 
specificities and the very language of Judge Bohling's writing is 
a RICO indictment.

What you have uncovered, for the first time on a legislative level, 
that I know of, is the tail of the dog.  While various legislators 
on both State - yes in all 50 States - and on Federal level have 
been, simply stated, "bought", you have had the courage to do what 
must be done, if our country is to have a chance to survive.

I know what SFM did in our case, and have the evidence; I also know 
others who know directly from the inside, as former employees, who 
know much more of what Sate Farm does than I do right now.

If there is anything that I can do to aid in exposing the further 
corruption of State Farm, do not hesitate to call on me.


William C. Hammel, Ph.D.



For elderly constituents who can't pay for drugs, but betray them 
in secret.  Here's the story:

Hi Jim,

I caught a story on ABC News this afternoon that you might be interested 
in.  I was still half asleep from my afternoon nap when I caught 

You know how high prescription drugs are? You know how years ago 
congress passed a law that patents would run out after a certain 
amount of time in order that the drugs could be made cheaper for 
the public? You know how pharmaceutical companies have lobbied their 
whores in congress to get extensions of patents so they could keep 
gouging the public? Well, now there's a new twist on the story. It 
seems that in an election year, one member of congress wanted to 
have his/her cake and eat it too. This whore wanted to dance to its 
master's tune but fearing a backlash from voters, submitted a bill 
anonymously.  The Republican leadership allowed this to happen.  
So there is now a bill that will have the effect of extending the 
patent on Claritin yet again attached as a rider to another bill, 
and the author of this rider is unknown.

When members of congress start submitting bills anonymously, a dictatorship 
is not far behind.




We mentioned in a previous newsletter that Allstate agents could 
not get SBA loans, since the government thinks the contract the company 
has forced on the agents it is now at war with is fraudulent. This 
will cripple new business. Now SEARS, the daddy of Allstate, has 
dropped the company. Sears and Hartford have formed an alliance whereby 
Hartford will market it's Auto, Homeownwers etc. to the Sears customer 

There is a huge common customer base, mostly older folks, between 
Allstate and SEARS. This is Really bad news for Allstate.

The company also overstates new business by claiming policy transfers 
to other states are such. But this hasn't covered over a precipitious 
decline in policyholders just in the last year.

In addition, there is an ongoing Federal investigation and a Grand 
Jury has been convened to hear the crimes of Allstate. Finally, Allstate 
is banking on making up its problems with agents and with bad publicity 
by going on the net. Put "Allstate" in any search engine and you 
will likely get an Allstate Complaint Site on the first page.

BTW, there are all sorts of interesting things about Allstate, including 
the report of the shareholder's meeting, at



California is one of the few states where disclosure of Market Conduct 
Exams on insurers is "illegal". If they had been completed and filed, 
they would have been available to other states where disclosure is 
okay. California certainly has some strange laws on the books. But 
this is the 7th largest market in the world, so that could be a factor. 
 On to the news. ======================

Date: 06/15 16:53 EST

Insurers: Calif. Legislators Broke Law by Releasing Market-Conduct 

SACRAMENTO, Calif., Jun 15, 2000, (A. M. Best via COMTEX) -- Some 
insurers claim that the California Legislature has broken the law 
in its zealous investigation of the alleged wrong-doings of Insurance 
Commissioner Chuck Quackenbush.

At issue is the Legislature's public release of preliminary market-conduct 
examinations that insurers said should have been kept confidential 
under state law.

The Senate Insurance Committee, which is investigating whether Quackenbush 
overlooked insurers' unfair business practices in exchange for donations 
to foundations under his control, had issued a subpoena to Quackenbush 
in an attempt to obtain the market-conduct exams. The exams are the 
insurance department's preliminary investigations into how State 
Farm, 21st Century (formerly 20th Century) and Allstate Insurance 
Co. handled claims relating to the 1994 Northridge earthquake.

The insurance department filed a countersuit to quash the subpoena, 
but before the court could rule, the insurance committee withdrew 
the subpoena request. Then days later, the Senate judiciary subcommittee 
on bad-faith liability and consumer rights distributed the reports 
to the public, said the Association of California Insurance Companies. 
How the subcommittee got the reports is not clear.

"We are definitely a victim in the release of that material," said 
Bill Packer, a spokesman for the association.

CYBERCOMMENTS: Oh boo hoo hoo. sob. poor little insurers got told 
on. And they're so Concerned for the Privacy of the victims they 
grind into the dust: "Oh, puh-leeze, Mr. Murderer, don't let anybody 
know you're killing me!"

I don't think many of their victims (who are unnamed in these reports 
anyway) are going to complain about publiic disclosure.  What a lawyerly 
crock of bull**t.  I guess CA has some sort of Criminal's Right to 
Absolute Privacy law (or California's CRAP law -- boy, that explains 
the corruption there.)



Californians overwhelmingly want Quackenbush gone SUPPORT DISAPPEARING: 
Poll finds resignation favored by 2-to-1 margin.
By Dennis Love Scripps-McClatchy Western Service

Thursday June 15, 2000

SACRAMENTO -- The political fortunes of State Insurance Commissioner 
Chuck Quackenbush appear to be rapidly corroding as a result of the 
investigations into his handling of earthquake claims against insurance 
companies, with a new Field Poll reporting that Californians favor 
his resignation by a nearly 2-to-1 margin.

If Quackenbush, a Republican, doesn't resign, the public by a 3-to-1 
margin believes he should be impeached, the poll found. Significantly, 
a small plurality of Republicans also said that Quackenbush should 
either resign or be impeached.

"The poll suggests that (the Quackenbush investigation) is being 
taken as a very serious matter," said Mark DiCamillo, vice president 
of the San Francisco-based Field Research Corp. "It's not being viewed 
as some trivial, partisan bickering. A great many people are aware 
of what's going on and they attach a lot of significance to it."

Quackenbush, a Republican, is being investigated by the state attorney 
general and the California Legislature in the wake of allegations 
that insurance companies dodged potentially massive fines after the 
1994 Northridge earthquake by contributing $11.6 million to a nonprofit 
foundation the commissioner formed. A significant portion of those 
donations went to TV advertising that featured Quackenbush, political 
polling and to programs unrelated to earthquake or insurance matters.

Quackenbush has denied knowledge of the expenditures. Legislative 
hearings resume next week.

The poll results are in stark contrast to the favorable regard in 
which Quackenbush has traditionally been held by Californians. Prior 
to the 1998 general election, when Quackenbush successfully ran for 
re-election as insurance commissioner, his image was "quite positive," 
DiCamillo said.

A Field Poll at that time found that Quackenbush had a favorable 
rating of nearly 40 percent, compared to an unfavorable rating of 
24 percent -- solid numbers in an election year dominated by Democrats. 
Moreover, DiCamillo said, Quackenbush's name recognition among constitutional 
officers was second only to Gov. Pete Wilson.

A majority of the general public -- and seven in 10 voters -- are 
aware of the nature of the allegations against Quackenbush, according 
to the poll. Eight in 10 Californians consider the charges against 
him to be serious, with Democrats and Republicans sharing that belief 
by large margins (88 percent of Democrats and 78 percent of Republicans).

The general public believes Quackenbush should resign by a margin 
of 47 percent to 26 percent. Registered voters agree by 50 percent 
to 29 percent; Democrats, 57 percent to 21 percent; Republicans, 
43 percent to 39 percent.

Fifty-four percent of both the general public and registered voters 
agreed that impeachment proceedings should be brought against Quackenbush 
if he does not resign, while 21 percent of the general public and 
24 percent of registered voters disagreed. Democrats agreed by a 
63-17 margin, as did Republicans, 44-32.

The poll also found that only 13 percent of the general public approve 
of the Quackenbush's job performance, while 44 percent disapprove. 
The gap was wider among registered voters, with 11 percent approving 
and 54 percent disapproving.

DiCamillo emphasized that the poll was a snapshot of public opinion 
based upon "what is known now" and that "new revelations could put 
him in a more favorable light."


-- Contact Dennis Love of the Sacramento Bee at




Yesterday, a lawsuit was filed in Sacramento Superior Court on behalf 
of California taxpayers that would require Quackenbush to pay back 
the $12 million that went to the foundations.

``Regardless of whether he leaves office, he has a debt to the taxpayers,'' 
said Scott Kronland, one of the San Francisco lawyers representing 
two taxpayers who are suing on behalf of all Californians. ``He traded 
his valuable ability to enforce the law for political favor. Basically, 
we had public financing of elections, but without taxpayer approval.''

A spokesman for Quackenbush said the office had not seen the lawsuit 
and therefore could not comment.

CYBERCOMMENTS: What a truly wonderful idea.  Make a crooked politician 
Repay the money he has stolen from the public.  Trent Lott should 
owe about three times the national debt.  There should be suits like 
this all over the nation.  Every crooked pol that ever stole a buck 
should be standing in the dock.

I'm glad to see the loathing for Quackenbush is bibpartisan.  Actually, 
being more heavily insured on average, Republicans have a Lot to 
lose if insurance is a crooked operation and not policed by corrupt 
DOIs.  So there should be rare consensus on this issue.  Unfortunately, 
the GOP leaders, like Lott, are not in tune with their conservative 
rank and file, and still do the bidding of their bribers in the insurance 



>From the NAPAA Direct Express:


that effective June 5, 2000, the Small Business Administration had 
placed a moratorium on loan approvals for financing Allstate BOBs. 
The sticking point? The "at will" termination clause in the Exclusive 
Agent agreement.

The SBA doesn't like the idea that the purchaser's contract can be 
terminated at any time, for any reason, with only a 90 day notice. 
That would jeopardize the ability of the agent to repay the loan, 
to say the least.

If this moratorium is not lifted, it could have far-reaching consequences 
for the many hundreds or thousands of loans that are now pending. 
Many agents' plans to convert and sell their BOBs and those agents 
who had planned to buy them may go up in smoke if this isn't resolved 

Allstate has been reported as saying that they have never yet terminated 
anyone without cause. Of course, that is debatable since in the termination 
letter they always say they have a cause and then invoke the "no 
cause needed" section of the agreement instead. So, technically, 
they probably are correct.

Correct or no, this clause has no place in an agreement where the 
agent may invest thousands of dollars and untold time and sweat to 
build up equity in a business that Allstate can take away by a mere 
stroke of the pen and then can control the market value of the book.

At the time of this writing, Allstate was in negotiations with the 
SBA to resolve the matter, HO staff was working over the weekend 
on this problem. Perhaps Allstate can guarantee the loans, thus offering 
recourse on defaults. Purchasers who have already received a commitment 
from the SBA may be okay. We will keep our readers up-dated, however, 
we strongly recommend purchasers immediately seek alternate financing 

giving the reason for the SBA action, Allstate will be notifying 
the agency force of the SBA's refusal to guarantee loans on purchases 
of Allstate agents' BOBs.

While we understand there are several options being considered by 
the Company to ease the problem, they are outlining two solutions 
at this time:

<><>Extending the deadline by 30 days (to September 1) for the sale 
to be completed.

<><>A process to irrevocably assign commissions of the buying agent 
to the selling agent for a certain period of time. This would make 
seller-financing more feasible. However, it's possible these commissions 
may be taxed as ordinary income rather than capital gains and there 
is the possibility of self-employment taxes (Soc. Security, etc.). 
It is not clear at this time, so check with your accountant.

be particularly concerned about a few "no cause" contract terminations. 
Perhaps what really concerns them is the possibility of future mass 
"no cause" terminations of contracts. Allstate said they fired the 
employee agents for "business reasons." The Company may feel a couple 
of years from now that it makes good business sense to further pare 
down the number of its captive agents to concentrate more on Internet/800 
channels and Independent Agents.



Judydoc wrote me a letter with a correction for the site, but I liked 
a part of the letter, so here it is:

==================================================== Many people 
are being just as screwed in the criminal justice system as we are 
in the civil justice system. The prison system is MASSIVE big business. 
 By filling the cells with small time non-violent drug dealers, and 
drunk drivers, and letting murders/rapist out, the criminal population 
if much easier to handle.  More compliant when they go to work for 
the telemarketing firms that hire prisons and their inmates at low 

I'm not saying drug dealers or drunk drivers should not be punished 
but I know that there is an inverse relationship between the length 
of sentence and the violence of the crime. The insurance abuse is 
only a small fraction of the much bigger story of the takeover of 
the government by corporate interests and the manipulation of laws 
and courts to effect protections for massive corporate crimes of 
ALL kinds.

Judydoc ========================================

Anyway, here is the corrected web page, regarding Judy's fight against 
the lies of the insurance industry,and UNUM in particular, about 
Chronic Fatigue Syndrome:


This complaint was posted today at:

Date: Thursday, June 15, 2000


This is an e-mail that I submitted to Allstate's website. The claim 
in ongoing. as of 06/15,2000. Due to an accident on May 15th, and 
having the unfortunate luck to be hit by a driver who also has Allstate 
insurance, I am now in the process of finding a NEW insurance company 
based on Allstate handling of this claim. My husband & I have been 
with your company for at least 15 years in three states, (OH, WI, 
and FL). Having never had to deal with your company from a claims 
perspective, we thought we were dealing with a reliable company. 
We have now discovered that Allstate is only equipped to accept payments 
and make changes to policies due to vehicle changes. I have talked 
with your medical division, claims adjustors, (Penny Hunter, that 
was rude and condescending), the faulting drivers agent, my agent 
and some that I do not know what dept they were with. Because both 
parties had Allstate insurance, everyone seems to forget that I was 
the victim, having been broadsided by a driver running a red light. 
The other driver was cited. So here I sit on the internet getting 
quotes from other insurance companies. Pretty sad!


Hi Jim....I liked this Outline,,,,,especially the Cybercomments... 
Even I get so sick of hearing about Big Insurance that I want to 
vomit....on Liddy.  ROFL It's good to give us perspective so that 
we can undrstand that Big Insurance is only part of the problem....It's 
selfishness, cheating and greed that occurs when organizations get 
too powerful and reach a critical large ...that politicians, 
the news media and even most people start believing the lies and 
accept this CRIMINAL behavior as just "business".

When I was a kid, I was a pain in the butt to my parents.  They were 
"liberal", and I was an Adam Smith Laissez Faire capitalist....ha 
ha. At least Adam Smith believed that organizations should be responsible 
and abide by their own contracts.  These bastards ( Big Insurance) 
**ck everyone....they are like piranahas in a feeding frenzy and 
eat their own offspring.  The only solution is to cut them into pieces 
and bury them so that that they won't reproduce.....We have a big 
evil lurking in this country AND we pay them to destroy our lives(via 
premiums).  We may need to have our government seize the assets of 
these criminal syndicates called insurance companies and distribute 
it to all the millions of victimes, change the laws and never let 
them do this to us again.  We need an International "Insurance Crimes 
Tribunal" like the Nuremberg Trials.....with public hangings of the 
BIG BOYS.  Maybe that will stop the killing machine.

You talked about Collossus....  The Food and Drug Administration 
requires that ALL software that affects any "medical device" be turned 
ovwer to them IN ADVANCE to assure that software glitches and "bug" 
don't inadvertently kill us.  What we need is the FDA to require 
the same for insurance companies.  It was the threat of the FDA that 
slowed BIG TOBACCO. We need "third party "validation" of Colossus....since 
it is used as a medical device....and can produce more harm to patients.




I was looking at the web page for the Human Rights Documentation 
Exchange, which has a list of countries from which a female can apply 
for asylum due to violation of the Violence Against Women act.  Now 
I expected to see countries like Afghanistan, Haiti, Guatemala, and 
Argentina, but there at the bottom of the Americas list was the good 
old U. S. of A.

However, reading their bibliography, it is obvious that political 
violence against women -- torture, murder, abuse, and rape -- is 
of massive global proportions. Since women are the weakest group 
in many nations, and oppressed fully as much as other minorities, 
it is easy to get away with.  I always pray that scum like Rush Limbaugh, 
who make fun of women, would have to go a country like Afghanistan 
wearing a dress (i f they could find one big enough).  He would get 
an entirely different perspective.  Women are also political targets 
since they are often more outspoken, thinking they may be shielded 
by the macho code, and not realizing just how vicious the subhuman 
thugs who do the dirty work for large nations (or large companies) 

Go to and look for the Women's Documentation Project

Closer to home, Allstate "targets" those least able to fight back 
with profiling programs such as COLOSSUS.  This includes low-income, 
the undereducated, minorities, widows, and women in general, who 
are programmatically weighted for "lowballing" or denial.  Allstate 
is also famous for terrorizing women with Intrusive Surveillance, 
so that they quit their claim.  For more about Allstate's War on 
Women, go here:



As we mentioned, the SBA will no longer grant loans to Allstate agents, 
and many other loan agencies will follow suit.  The SBA finds Allstate's 
contract with its own agents unacceptable.  Go to 
for more details.

Meanwhile, Allstate is osing the agents who built the company and 
bring in the loot, like water through a seive:


Just heard from a reliable source that 37% of the agency force in 
hoosierland will be gone and that Michigan may lose as much as 50%.

Ohio is coming in around 35 to 40 percent.

The body count in our district was 6 out of 15 agents left the company.

This appears to be close to other districts in my area.

I would say over all Washington is losing 35% Wisconsin has lost 

Futile in Indiana reports 50%

I have heard that the Carolinas are very hard hit.

I have heard Florida was hard hit but no statewide numbers, but it 
sounds like 40%.

we lost 2 of 28 would be 3 with financing a total of six out of twenty 
one gone from our district.

In a Maryland market...Since 1/1/2000, 8 gone but 5 newbies hired.

In a NY Metro market, near NYC, out of 26 agents, 8 are leaving. 
Not much activity re: new hires yet, there was a push about a year 
ago, but not much fact, we're getting solicited by other 

Our district had 17 agents last Thanksgiving; 6 EA and 11 Noa located 
in 13 separate offices. Now there are 14 EA located in 9 offices. 
 Only one sale was closed. A 32 year agent sold his book to his office 
partner. A second 32 year agent took the company offer to quit, and 
a 5 year agent became disgusted with hot and cold UW and sold his 
book back to the company. The newbie was ready to quit for the past 
year and was not influenced by job in the box offer.

In looking over the number af agents assigned per TAM, we went from 
over 1000 agents to a little over 650. It calculated out to a loss 
of 37.8%. That's BEFORE the 6/1 deadline. My guess, based on this 
and the number of retirement parties I've been to, is that 40-45% 
are gone.

Alaska is losing 7 of 37 agents. 4 left last year. As near as I can 
see it looks like 5 out of 16 in my district but there are many more 
about to go within the next year. I would say 5 to 6 more.

Help with financing by: newinvestor_98109 6/15/00 11:41 pm Msg: 17797 
of 17800

Any agents out there know of any alternative financing for purchasing 
books? I had purchased 2 agencies, closing 7/1. Just yesterday I 
found out that the SBA is not going to fund these loans anymore. 
In the meantime my wife has quit her job to come to work for me. 
We are devastated



Allstate stock is again dropping like a rock.  Ed Liddy is making 
the usual excuses about storms, although they weren't that bad.  
More likely the loss of six million customers and half their agent 
force has something to do with it.  Ed took a great business and 
drove off Everyone.



On the net.  So those who hate it are making ever more attacks against 
free speech through the tort backdoor.  We really need a national 
anti-SLAPP law before we are all forbidden to say Anything against 
a corporation.  Here is a link that shows the new harassment against 
free speech:

Like the CA DOI hiding market conduct exams, this business of hiding 
the truth by tort just plain stinks and hits against the very foundations 
of democracy.  These companies need to move to Red China, or take 
a time machine back to the Dark Ages, where they could cut people's 
tongues out.  If they don't like what people say in a free forum, 
why then they can respond with the Facts in a free forum, not try 
to Silence discusssion entirely by threats (or by use of personal 
insult, as I see many insurance company boosters do).  Most companies 
have legions of professional, smart PR people, so it shouldn't be 
that hard for them to debate an issue in a public forum.  But as 
Hitler said, "if you can't kill them, shut them up." We have fought 
too long and too hard and too many have died to have free speech 
stolen by these bums and their threats:



Allstate lawyers will often drag a case on with endless promises, 
lies, half-kept promises, delays, filings, and motions, until the 
claimant suddenly finds he is past the Statute of Limitations and 
out of luck. Make sure you check this in your state and keep abreast 
of it. DON'T depend on your lawyer to do this. They are very busy 
and notorious for missing dates. And there are even lawyers who collude 
with the opposition in a stall, until it's too late.


The Foundation for Taxpayer and Consumer Rights has posted the Executive 
Summaries of the California Department of Insurance "Market Conduct 
Examinations" of State Farm, Allstate, 20th Century and Farmers Home 
Insurance on our website.

These exams, kept hidden from the public by California Insurance 
Commissioner Chuck Quackenbush, detail serious violations in the 
claims handling practices of the companies after the 1994 Northridge 
Earthquake.  Quackenbush ignored the results of the exams and recommendations 
of his own staff when he required insurers to contribute to private 
foundations rather than pay official fines and create victim restitution 

The exams can be downloaded in 'pdf' format at:

The FTCR news release about the exams follows:

Documents Refute Quackenbush's Alibi

Insurance Company Examinations, Released by Senate, Give Devastating 
Account of Rampant Violations By Insurers After the Northridge Quake

Sacramento--Commissioner Quackenbush's main alibi in defense of his 
special deals with insurance companies after the Northridge earthquake 
-- that he had insufficient evidence against insurance companies 
to fine them -- was refuted today when Senator Martha Escutia released 
Executive Summaries of the detailed examination reports conducted 
by the Department of Insurance (DOI) Market Conduct Bureau. According 
to the documents, the formal examinations of State Farm, Allstate 
and 20th/21st Century provide thorough documentation in support of 
high fines against the companies and a massive victim restitution 
fund to remedy cheated policyholders.

"Until now Mr. Quackenbush has claimed that the state did not have 
sufficient evidence to take serious action against insurance companies. 
These exams are the smoking guns that expose the insurance companies' 
bad behavior after the Northridge quake," said Douglas Heller of 
the Foundation for Taxpayer and Consumer Rights.  "Insurance companies 
signed a sweetheart deal when they agreed to making tax-deductible 
donations to Quackenbush's foundations, because, as these reports 
show, they had a lot to hide."

Contrary to insurance companies' descriptions of these reports as 
generic negotiating tools, the executive summaries indicate that 
the Department, in fact, conducted full-scale investigations between 
November 26, 1997 and November 18, 1998 into the companies' behavior. 
The exams show violations of a variety of claims handling laws and 
regulations. For example :

* State Farm did not properly explain policyholder's benefits, misled 
policyholders or misrepresented settlement in 37% of the 825 files 

* 20th Century offered unacceptably low settlements in 32% of the 
431 reviewed;

* Allstate reduced settlements based on unnecessary or excessive 
depreciation of property value in 16% of the 808 files reviewed.

"These exams show patterns of misbehavior by the companies that Quackenbush 
has hidden under lock and key until these documents were made public. 
 It is now the state's job to:

1. Make sure that Northridge victims are fully paid for unresolved 
and low-balled claims;

2. Make sure that insurance companies are punished for their misbehavior;

3. Pass new consumer protection legislation to prevent this kind 
of tragedy in the future;

4. Determine if Mr. Quackenbush should be removed from office," said 



Even those of you who are not Calfornians, but who have been ignored 
or even insulted by your own insurer-pandering commissioner, should 
take heart in the fact that some day he (or she) may be similarly 
exposed as an insurance industry whore (sorry, I don't mean to insult 
whores by comparing them to politicians -- it's just a figure of 
speech ;') =========================================

Friday, June 16, 2000

Memos Link Quackenbush to Money Plans

By VIRGINIA ELLIS, Times Staff Writer

SACRAMENTO--Handwritten notes from a Sacramento political consultant 
indicate that California Insurance Commissioner Chuck Quackenbush 
may have been involved directly in plans to spend money from insurance 
company settlements as early as September 1999.

Quackenbush has consistently denied any direct knowledge of or involvement 
in foundations he set up with $12.8 million collected from insurers 
in lieu of penalties for their handling of Northridge earthquake 
claims. But he is repeatedly mentioned in the memos, written between 
March and December 1999.

The notes were written by Martin Wilson, managing director of Public 
Strategies Inc., which ultimately received $375,000 from one of the 
foundations to conduct a political poll of minorities.

One dated Sept. 29, 1999, notes that Quackenbush would contact insurance 
companies to seek money for a project being pushed by Wilson to expand 
insurance coverage in minority areas and enhance the commissioner's 

"Chuck to ask co's," Wilson's note says. The documents, obtained 
by The Times, could figure prominently in a hearing Monday before 
a state Assembly committee investigating Quackenbush's handling of 
his settlements with the insurance companies.

Also on Thursday, state Atty. Gen. Bill Lockyer filed a motion in 
state court detailing dozens of irregularities--including a $30,000 
forged check and faked meeting minutes--in the way one of the controversial 
foundations was operated. The foundation, California Research and 
Assistance Fund, is the same one involved in the Public Strategies 

Despite mounting pressure to resign from members of his own political 
party, Republican Quackenbush said Thursday through a spokesman that 
he will testify as scheduled at the hearing Monday.

George Grays, a deputy insurance commissioner until he resigned in 
April, is also scheduled to testify Monday. Unless he wins some form 
of immunity, legislative sources say, he is expected to take the 
5th Amendment to avoid self-incrimination.

Referring to the Wilson notes, Deputy Insurance Commissioner Dan 
Edwards said any suggestion that the commissioner had a role in the 
planning of the Public Strategies project is incorrect.

"I don't believe Chuck to have been intimately involved in this program 
at any time," he said. "A lot of people talk about Quackenbush this, 
and Quackenbush that, just because they want to invoke his name to 
push their project along."

A source knowledgeable about the documents and the project said Wilson 
never discussed the proposal with Quackenbush. The source said Wilson's 
memo outlining the commissioner's role was based on information provided 
by Joe Shumate, an advisor to Quackenbush during his 1998 reelection 
campaign and a participant in the project.

Shumate was on vacation and could not be reached for comment.

One set of notes dated May 26, 1999, says that Shumate is "to meet 
with Quackenbush next week." It also observes that the key to winning 
approval for the proposal is "to get Quack pumped up on project."

In addition to the handwritten notes, Wilson wrote memos that outlined 
an "information, education and outreach campaign" aimed at minority 
communities in Southern California that would be financed with state 
money and contributions from insurance companies.

Several of the memos were addressed to Grays. "I am grateful for 
your input," says a June 15, 1999, memo to Grays from Jonathan Wilcox, 
one of the partners in the project. "I know we have made significant 
strides toward the development and delivery of an outstanding public 
benefit for the commissioner."

A source knowledgeable about the memos said Wilson did not know about 
the existence of the foundations until he was told in the fall of 
1999 that a portion of his project had been approved and would be 
paid for by the foundation.

Edwards said officials in the Department of Insurance were told about 
the project by Grays and were led to believe it had been approved 
by the foundation's board of directors.

Testimony before the legislative committees last week revealed, however, 
that the board of directors never met during 1999 to approve any 

In his filing on Thursday, Lockyer asked a Sacramento court to bar 
the foundation from spending any more money. Lockyer said directors 
of the foundation "ceded" control to Grays, who wastefully diverted 
its assets.

He said Grays paid premium prices for television commercials that 
featured the commissioner and were produced by political consultants 
with close ties to Quackenbush.

The directors of the foundation, Lockyer said, breached their responsibility 
by "diverting and wasting charitable assets" through contracts with 
consultants whose charges "were neither fair nor reasonable." None 
of the contracts, the attorney general noted, were submitted for 
competitive bidding.

To cover up the wild spending by the foundation, Lockyer said, board 
members created false meeting notes and postdated documents.

A sworn affidavit submitted by a handwriting expert concluded that 
a $30,000 check written to a Sacramento football camp attended by 
Quackenbush children and signed in the name of foundation board member 
Ron Weekley was a forgery. However, the expert said an $18,000 check 
written by Weekley to his own private company appeared to be authentic.

Lockyer filed a 6-inch-high stack of court documents to support his 
request that an injunction issued last month to freeze the remaining 
assets of the foundation be continued. A hearing on that request 
is scheduled June 21.

The attorney general, who oversees charitable trusts in California, 
is seeking ultimately to have the foundation dissolved.

Lockyer said its remaining assets include $6 million for restitution 
to earthquake victims that he feared would also be wasted if the 
injunction is lifted.

A plan for distributing the money--highly praised by Quackenbush 
and already approved by the board--is "seriously flawed," he said.



New allegations against companies now owned by American General Corp. 
claim that the insurers not only set rates on burial insurance based 
on race, but also restricted the types of policies they would sell 
to blacks and set up weekly payment plans that resulted in higher 

Full coverage is here:



(06-16) 18:57 PDT SACRAMENTO (AP) -- A judge on Friday called legislative 
conduct improper but rejected Commissioner Charles Quackenbush's 
attempt to force the Senate to remove sensitive audit summaries posted 
on a subcommittee Web site. 

Superior Court Judge Joe S. Gray said constitutional safeguards for 
the separation of powers precluded him from acting against the Senate 
for releasing the audits, called market conduct exams. 

``Even though the conduct is improper, I cannot enjoin it,'' Gray 

The Legislature's lawyers said forcing the Senate to remove the summaries 
from the Web site and retrieve copies that had been distributed earlier 
in the week interfered with lawmakers' legitimate right to communicate 
with the public and ride herd on public agencies. 

``It (the Legislature) makes available an incredible amount of information 
because it wants public comment,'' said Legislative Counsel Bion 

The documents were posted earlier this week by a Senate subcommittee 
looking into allegations of insurer misconduct. 

The Department of Insurance, joined by two insurance trade associations, 
among others, said the market conduct exams contained confidential 
information that would pose an invasion of privacy if released to 
the public. 

They also noted that insurers would be suspicious of future exams 
if they believed the information ultimately would be made public. 

``We're going to have trench warfare every time we do a market conduct 
exam,'' said attorney Rich Robinson, representing the Insurance Department. 

The summaries are parts of exams, compiled by Insurance Department 
auditors, that include hundreds of alleged claims-handling violations 
of several companies stemming from the 1994 Northridge earthquake. 

The exams have assumed a significant role in the deepening political 
scandal surrounding Quackenbush. 

The audits suggested potential fines against the companies of up 
to $3.7 billion. Quackenbush allowed the insurers to resolve the 
complaints by contributing a far smaller amount -- $12 million -- 
to a nonprofit fund designed to provide money for consumer assistance 
and quake research. 

Much of the money however, was spent on public service advertising 
and other programs that politically benefited the commissioner, prompting 
investigations of Quackenbush's activities. 

Quackenbush is scheduled to appear on June 26 before the Assembly 
Insurance Committee, which is investigating the commissioner and 
his settlements with insurers. He originally had been scheduled to 
appear Monday, but the date was pushed back because of pending action 
on the state budget. 

CYBERCOMMENTS: How hard State DOIs work to keep secrets for insurers. 
 If only they worked that hard to help the taxpayers who are their 


"There is no Justice but that we make it so."

The insurance industry spends tens of millions to control the  media 
and politicians.  We're lucky to scratch up twenty bucks.  

If you want to help us get more of the truth out, please send a donation 
to our box below:

Jim Mooney, webmaster
 4495-304 Roosevelt Blvd PMB # 204
 Jacksonville, FL 32210

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Created: June 18, 2000
Last Updated: June 18, 2000