State Farm The Great Satan
Screws Its Own Adjusters Too

See what Allstate does to its employees at


From: A Good Ole Boy Email:
Date: 05 Nov 1998 Time: 21:47:08

As a 10 year veteran of the catastrophe adjusting business, I've worked
on numerous State Farm projects, as well as for many other companies.
All with varying degrees of profit potential. What you're about to read
is worth your time ... trust me. It may save you from making a big

We've all heard the horror stories which have been circulating for years
now, about how bad State Farm often treats it's independent adjusters,
as well as their policy holders. To date, however, I've been mostly
spared the bad trips many other adjusters have experienced. I've made
money working for State Farm in the past, but it's getting more and more
difficult, especially on a large CAT.

Now I have my own nightmare to add to the stories you've heard. By the
way, it's true ... they do behave like Nazi's toward independents on
most of their projects, and care about as little for the independent
adjuster, as they do for their policy holders. For those who have worked
for what's come to be known as Hitler's "SF," you know what I'm talking
about. The latest term I've heard to describe them in south Mississippi
is, "The Great Satan." This is how angry people have become here.

This year I was begged, I mean literally begged by a certain
independent, to come and help them out on their hurricane Georges
operation in south Mississippi, because the adjuster before me had
ditched the storm. Fool that I was, I went to try and help out, only to
get the worst screwing I've gotten in a very long time.

To begin with, at least a third of the flood files I was given, required
underwriting reformation before a scope could be agreed to, or any
advances issued. This process was taking up to 30 days when I left. Keep
in mind, in many cases these are people out of their homes without
additional living expenses. Many were so upset, that they were either in
tears when I arrived, or furious that they couldn't get any advance
money. Add to this the problem of closing these files. You can't close a
flood claim that is being corrected for underwriting errors. You can't
bill it either. We couldn't even close our no claims, until what has
come to be known as "The Reformation" is completed on the policy.

When I asked one of their wealthy agents, who's home I just happened to
be handling for minor flood damage, what an elevated structure was, the
agent admitted to me that she had no clue. And that she had not even
been to a seminar or workshop on the subject, because they were
inconveniently held out of town. Far from being an isolated case, there
are hundreds, possibly thousands of State Farm policy holders all across
the southern Gulf Coast, who are getting screwed more than they usually
do by State Farm, all because the company failed to properly school
and(or) test their agents on how to accurately file the underwriting on
a dwelling flood policy.

But the nightmare doesn't end there, the poor people in many cases will
owe money when the underwriting errors are corrected, because they were
being undercharged on their coverage, for in some cases YEARS! Try
handling a claim where, because of the hurricane, the policy holder owes
the insurance company money!!! It's the most negligent situation I've
ever encountered since I started adjusting. It wouldn't surprise me to
see a class action lawsuit against them for this, if their isn't one

And get this, the policy holders all say that after they purchased their
policies, someone came out and inspected their homes in order to verify
the application. Makes you wonder who's watching the store here.

Amazing how these hypocritical bastards will nickel and dime the poor
people to death, meticulously handling their disaster claims to
undeniable lean accuracy. Only to handle the underwriting with such a
disregard for correctness, as to cause a second catastrophe in the poor
people's lives.

It's as if someone owned a grocery store, who didn't care to manage the
receipts for his wholesale inventory, but managed to death, the check
out clerks, the bagboys, and the customers for shoplifting concerns.
Going so far as to do body cavity searches of everyone who dares leave
the store with any merchandise, even though the goods are already paid

What's worse, when I arrived at the CAT two weeks after the storm, no
one informed me how bad things were, because all they were looking for
at that point were warm bodies to help control the dam break of
underwriting errors. Many of the adjusters before me had already fled
the situation.

Little did I know that the underwriting problems had created an
apparently dire legal or political situation, whereby we were told that
the storm office had to be closed by Thanksgiving. This created an extra
element of stress during the operation, that became a nightmare for me
personally. I have a hard time dealing with people who are angry for
good reason. It's hard to put a value on your labor under those kinds of
circumstances, because you have to spend so much of your time hand
holding. Work like this should be billed at time and expense, or a daily
rate, it's that simple.

Rumor is that the Mississippi State insurance commissioner has caught
wind of the big mishap, and is coming down hard on State Farm, forcing
them to rush their claims to completion. Keep in mind that you will
probably not be paid for the time and effort you put into the files you
cannot close before they are reassigned. This is common practice with
State Farm, stealing labor, and don't kid yourself, the adjusting firms
you are working for don't give a damn about you or your money, because
they will get theirs, regardless.

When I received my files, many of the insured's were complaining that we
were the third and fourth adjuster who had contacted them. This was only
two weeks into the storm! Why, because it's getting hard to find good
adjuster's willing to be a part of the "SF." They simply don't pay
enough for the garbage you have to put up with, and it creates
underlying resentment throughout the whole operation. They seem to take
pride in denying people all the they can, and that includes denying the
independent adjuster a fair return on their investment of time and
labor. I swear, working in one of their offices, is often like working
in a maximum security prison. You have no freedom to do anything, except
kiss the guards asses continually, while they strip you of every bit of
pride you ever had in your work. Their arrogance is unequaled in the
industry, and as I have said, I have worked for just about everybody at
one time or another.

My advice. Never ever work for a State Farm catastrophe operation,
unless it's minor wind or hail, or you get lucky and are working in an
independent's branch completely separated from their offices. Otherwise,
you will have to put up with 10 times more crap than working for anyone
else, and if you're lucky, you'll make even less money.

One of the reasons I've always liked adjusting property claims in a
disaster situation, was because I felt like I was helping people.
Working for State Farm, I rarely have that feeling. Instead, I have the
feeling that I'm screwing people, and it's awful. You go home tired at
night, after spending all day on your inspections, and you think about
all the people you screwed that day, because by the time you get done
with withholding their roof tear-off, and their depreciation, and their
hurricane deductible, they are left with nothing, except a premium
notice that just keeps on coming, year after year. This business has
gone down hill precipitously since I got into it ten years ago, and I'm
seriously thinking of leaving the industry. I just don't get that good
feeling I used to, especially working for the Great Satan.

Which brings to mind something that just bugs the crap out of me. One of
the worst things State Farm does, in my opinion, is consider partial
roof replacement a betterment. I wish someone would challenge this in
court, again and again if necessary, because if I was sitting on a jury,
I would throw Holy Water all over them on this issue. It's insane to
call slope replacement a betterment, and we all know it. In the mind of
the average Joe it's a repair, because in most people's minds the word
"roof" is singular.

If any independent adjusters are interested in joining me for a possible
class action lawsuit against State Farm, and the temporary employment
agencies they utilize; for unfair and deceptive labor practices, and
whatever else we can come up with, please contact me at my E-mail
address, or watch for future bulletins on this web page.

I have been told that there is a famed attorney who might be willing to
make our case, due to some common interest in another action he's
undertaken, and which is currently pending against State Farm, by the
policy the holders in the state of Mississippi. Let's face it, our
testimony could be devastating to State Farm, if we spoke on behalf of
the policy holders in any courtroom in the land. It could be the
greatest bombshell ever to hit the industry, and one well deserved. Much
bigger than the Allstate fury currently brewing in California.

What do we have to lose? Most of us don't care if we ever work for them
again anyway. If State Farm disappeared tomorrow, most independents
would jump for joy.


Date: Thu, 03 Dec 1998 20:49:31 -0500



The Name of the Beast

From: A Good Ole Boy
Date: 24 Nov 1998 Time: 12:26:18


The term "Great Satan" was used in my warning sign, because I felt it
was a genuine and accurate depiction, of the feelings being expressed by
many of the flood victims I came into contact with in south Mississippi.
I suppose another way of putting it could of been "rabid hatred" of
State Farm. Either way, you get the picture loud and clear.

One of the important difficulties of our jobs, is directly tied to the
level of anger we are confronted with, on the job. For example, if
anyone has worked claims in a bankruptcy situation, you know how angry
the insured's get when they find out there will be a serious delay in
payment. This was, and I'm sure still is, a similarly bad situation,
which State Farm called "The Reformation." Although State Farm is far
from broke, I think we have an obligation to warn each other, when
something bad like a bankruptcy, is going on in this industry.

I remember what happened on the island of Kauai after hurricane Iniki.
Several insurance companies(HIG in particular), tried to hide the fact
that they were broke, in part to keep adjusters working for less than
they bargained for, in an area of the U.S. where the cost of living is
extrememly high. If not for the bravery of one adjuster I know, who had
the good sense to call the investor services division of Hawaiian
Insurance Group, and calculate the reinsurance for himself, we would of
all lost more than just a few free shirts. I managed to get 75% of the
money I had coming over there, and I am very grateful to that adjuster
who anonymously broke the story, because it helped save me money, and
forced the State of Hawaii to publicly stand behind it's obligations,
NOT ONLY TO THE INSURED'S, but to the adjusters working the claims. That
one brave guy helped a whole lot of his brothers, by exposing the truth
early on. I believe his name is recorded in Heaven.

In this case, there is no question that something bad is going on in
south Mississippi. There were an extra ordinary number of flood
underwriting errors, and anyone who speaks to the contrary is simply

We must face the fact that we are often up against people who will lie
to us, in order to keep us blindly working, or have us enter a bad
situation to begin with. In this case I was lied to blantantly by one of
temporary employers State Farm utilizes to round up grunts. The reason I
did not name the temporary employer, is because I recognize the root of
the problem. However, this does not protect them from civil lawsuit. I
don't enjoy being lied to and used like a piece of garbage.

Free speech is not always "pretty please with sugar on top." Sometimes
it's hard to swallow.


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Email me, Bill Hammel at
bhammel AT graham DOT main DOT nc DOT us

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Created: November 9, 1998
Last Updated: May 28, 2000