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Every business has its inside jokes. In the insurance game, the big thigh slapper is describing insurance as "the only product that automatically goes away when you need it." Sadly, this is too often the case, as the complaints in this section attest. Take Rachel, for example. She thought she had plenty of insurance until she was hit by an underinsured motorist.

Another sad truth is that the more likely you are to need the protection insurance provides, the more it's likely to cost. Increasingly, your credit report can play a big role in setting your premium. Unfortunately, this is not itself illegal -- although if companies fail to notify you, it just might be a violation of the Federal Credit Reporting Act. (More about this)

Insurance Section Guide

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    Californians Fight Back Against 'Rescinded' Health Coverage Class actions against Blue Cross of California heat up.

    Big Box Retailers, Not FEMA, May Be First Line Of Defense Remote, top-down federal management falls short of meeting urgent needs.

    Home Warranties Not Always What They Seem Pre-existing conditions not covered, response time often lengthy.

    California Orders Allstate to Lower Car Insurance Rates 15% Consumers save $250 million.

    Consumers Say Medical 'Benefit' Pitch Misleading Discount plan is not insurance but confusion is common.

    2008 Another Year of Record Profits for Insurers Overpricing policies, underpaying claims pays off big.

    Travelers Insurance Settles Bid-Rigging Charges Insurer agrees to pay $6 million and reform its practices.

    Connecticut Derails Title Insurance Kickback Scheme Companies agree to pay $700,000, customers to be reimbursed.

    Fireman's Fund Offers 'Green' Policy Wildfire victims get the chance to go green when they rebuild.

    California Wildfires Aftermath Requires Vigilance Price-gouging, crooked contractors, insurance chiseling often follow disasters

    Insurers Dumping Customers Along East Coast Hurricane fears lead to rash of cancellations.

    Connecticut Files Antitrust Suit Against Reinsurance Broker Illegal actions inflated consumers' premiums by 40%, state charges.

    Nationwide Cancels 39,000 More Homeowner Policies Insurers dumping policies in hurricane zones.

    Census Report Shows Increase In Uninsured Americans earning more but fewer have health insurance.

    Study Finds 24% of Americans Underinsured Employers and workers struggle while insurers profit, study finds.

    Consumers Want Allstate Records Kept Public Insurer asks court to seal records relating to its Hurricane Katrina claims.

    Consumers Dispute FTC Report on Insurance Credit Scoring Use of credit scores to fix insurance premiums discriminates against minorities, consumer groups argue.

    The Hartford Settles Illegal Trading Charges Company will pay $115 million to settle allegations by Connecticut, Illinois and New York that it faked bids and allowed illegal trading in some mutual funds.

    Lower Insurance Rates for Some OnStar Customers Onstar checks up on drivers' mileage claims.

    Iowa Probes Long-Term Care Insurance Consumers complain of unexpected increases in premiums, denied benefits.

    NY Court Rules in Favor of Disabled Policyholders Court rules insurers can't preclude existing conditions in long-term disability claims.

    Mississippi Sues State Farm Over Katrina Coverage In Louisiana case, whistleblowers claim insurers defrauded FEMA.

    Texas Sues "Credit Insurance" Companies Policies supposedly protected news cars' financing. Refunds may total $6 million.

    Insurer Unlawfully Poached Consumers' Credit Reports New York insurance company accessed credit reports unlawfully, agrees to pay restitution.

    Viatical Company Pleads Guilty to Racketeering, Fraud Florida company allegedly misled investors in scheme involving life insurance policies on the terminally ill.

    Payback: State Farm Writes Off Mississippi Insurer walks away after losing Katrina-related lawsuits.

    Judge Nixes State Farm Katrina Settlement Both sides say they will amend the agreement to resolve the judge's objections.

    Nationwide, Aetna Customer Data Stolen Thieves take computer backup tapes containing customer data and medical records.

    John Alden, Fortis Accused of Improperly Denying Coverage Connecticut questions insurers' claims that patients conditions were pre-existing.

    Minnesota Charges Allianz Life Sold Unsuitable Annuities to Seniors Lawsuit claims company's agents exploited elderly clients.

    Study: Motorists Often Switch Insurers After Filing a Claim Amica Mutual, Erie, State Farm get best marks in J.D. Power study.

    Judge Rules Against State Farm in Katrina Case Judge rules company is liable for damage to home destroyed during hurricane. Jury deliberating damages.

    Insurers Enjoy Record Profits While Premiums Rise, Coverage Shrinks Consumers, taxpayers left to pick up the tab as insurance companies enrich themselves.

    Wells Fargo, Acordia Sued for Fraud States charge companies led customers to insurers who had paid kickbacks.

    Congress Treads Water on "Flood Car" Bill Republicans plan to toss hot potato to incoming Democrats. Translation: No action til next year.

    Zurich American Implements Reforms, Pays Consumers Millions Texas and other states accused insurer of bid-rigging, price-fixing.

    Health Savings Accounts: A New Way to Handle Health Care Here's a way to combine your retirement savings with healthcare insurance.

    Aging Well Takes More than Time Shrinking government programs put increasing burden on consumers to plan for their later years.

    Massachusetts Fines Health Insurers Companies failed to provide benefits mandated by state law.

    UnumProvident Agrees to "Sweeping Reforms" Unum pays $17.4 million to settle New York charges.

    California Consumers Warned of Bogus Discount Health Insurance Prime Med Care, Prime Star Health Care not licensed in California, insurance department warns.

    New York Charges Fraud in Life Settlement Industry Brokers take secret commissions, chisel policy owners, state charges.

    Liberty Mutual Sued in Bid-Rigging Investigation Illinois is latest state to file charges in bid-rigging scandal involving large insurers.

    Secret Scores Influence Auto Insurance Rates Consumer Reports looks at use of credit reports to help set premiums.

    AIG Customers At Risk After File Server Is Stolen Insurance company asserts that thieves probably didn't know what they were stealing.

    Washington Shuts Down Bogus Long-Term Care Scheme High-pressure sales used to push plan that sounded like long-term care insurance.

    California Charges Auto, Homeowner Insurers Making Excess Profits Insurance Commissioner Garamendi schedules July hearings on the issue.

    Young Adults Lack Health Insurance Report finds growing number of young aduls have no health coverage.

    Homeowners Insurance Rates Unfair, Massachusetts Charges Raising rates in anticipation of hurricanes isn't justified, state argues.

    The Hartford Apologizes, Pays $20 Million for Fraud in Annuity Sales Company vows to clean up its procedures.

    Political Firefight Over California Auto Insurance Rates Insurance commissioner charges insurers are blackmailing him.

    Aetna Loses Laptop Containing Customer Data Laptop with information on 38,000 customers stolen from employee's car.

    Health Insurance A Near-Monopoly, Study Finds Lack of competition driving up prices, reducing choice and innovation, AMA charges.

    California Accuses Hartford Insurance of Charging Illegal Fees Company denies it, says fees in question are not regulated.

    GEICO Ties Insurance Rates to Education, Occupation Consumer Federation of America charges company discriminats against lower-income and minority drivers.

    Insurance Rates Up Sharply in Katrina's Wake Survey finds premiums up 33 percent in some areas.

    Higher Gas Prices Could Mean Lower Insurance Rates Driving less? You may qualify for a discount.

    Gulf Coast Homeowners File Class Action against State Farm Lawsuit argues homeowners' "all perils" policies should cover wind-driven water damage.

    Insurance Break for Hybrid Owners in 2006 Travelers is first major company to offer discounts to hybrids.

    Malpractice Insurers Inflated Losses, Study Finds Bilked doctors of billions, consumers group charges.

    Illinois Earthquake Rattles Insurers Some insurers plan to stop writing earthquake insurance in Illinois, Missouri.

    Consumers Pay the Price for Disasters: Tips on Minimizing Your Losses in 2006 Disaster planning includes avoiding dangerous situations, picking the right insurance coverage.

    California Dumps Zip Code-Based Auto Insurance Rates State finally implements key provision of Proposition 103, passed by voters in 1988.

    Future of Gulf Coast Homeowners Insurance Murky, S&P Warns Insurers being tight-lipped about their plans.

    Sen. Trent Lott Sues State Farm over Katrina Damage Prominent Republican turns to his brother-in-law, plaintiffs' attorney Richard Scruggs, to sue State Farm.

    Busiest Hurricane Season on Record Finally Ends Damage at $60 billion and climbing as season officially comes to an end.

    Congress Considers Taxpayer-Funded Catastrophe Insurance Recent disasters show need for more protection, consumer group argues.

    Five Reasons Not To Buy An Extended Warranty Based on the experiences of our readers, we'd have to say extended warranties are a bad idea.

    Pennsylvania Suit Challenges State Farm Salvage Title Deal Insurer's settlement with states was a "sweetheart deal," suit charges.

    J.D. Power Survey: Hurricanes Destroy Consumer Satisfaction with their Insurance Amica Mutual ranks highest in overall customer satisfaction.

    Hurricane Victims Irked at Companies, Charities Insurers, large retailers disappoint evacuees with inflexible policies, broken promises.

    State Farm's Wrecked Car Owners Feeling Slighted Attorneys general brokered private deal with State Farm, which resold totaled cars without salvage titles.

    Class Action Suit Filed Against AIG Over Katrina Claims Company has not responded to homeowners seeking assistance, suit charges.

    Texas Orders Allstate to Pay Homeowners' Claims Homeowners unable to return home should receive living expenses, judge rules.

    Mississippi, Insurers In Stand-Off Over Hurricane Damage Mississippi Attorney General wants federal aid to help homeowners whose insurance claims have been denied.

    Lawyers Line Up to Sue Insurance Companies Over Katrina Denials Lawyers line up to sue insurance companies over exclusion of water damage.

    Katrina Victims Face Insurance Delays, Denials Mississippi files suit alleging wrongful denials of many claims.

    Insurance Executives Indicted for Bid Rigging, Fraud New York grand jury indicts eight former Marsh and McLennan managers.

    Fewer U.S. Workers Have Health Coverage The percentage of businesses offering health insurance to their workers has declined steadily over the last five years, a study finds.

    Insurance Affects Follow-Up Care, Study Finds Study finds it harder to get a follow-up appointment for patients with Medicaid or no insurance.

    Katrina Loss Put at More Than $100 Billion Insurance analysts blame inadequate levees, poor preparedness for rising damage, casualty tolls.

    Insurance, Safety Tips for Homeowners in Katrina's Path It's not too early for homeowners outside flooded areas to contact insurers and begin the claims and rebuilding process.

    Homeowners Insurance May Cover Additional Living Expenses for Katrina Victims Forced from Their Homes Living expenses generally not provided by flood insurance, however.

    Insurance Agency to Pay $30 Million to Settle Connecticut Kickback Charges The Hartford, Travelers, CNA paid kickbacks to agents

    Illinois Supreme Court Overturns $1 Billion State Farm Judgment It may be a bad omen for other class actions in Illinois, traditionally a consumer-friendly state.

    Survey Finds Discontent with Managed-Care Plans Only 64 percent "completely satisfied" with their health plan.

    Massachusetts Reviews Long Term Care Insurance Marketing Consumers need straight talk, not sales pitch, attorney general warns.

    Terrorism Insurance Act Expiring as Congress Debates White House wants private insurers to take over. Insurers not rushing to comply.

    KB Home to Pay $2 Million for Violating Home Warranty Agreement California homebuilder will also be required to extend home warranty coverage for an additional year for some homeowners.

    Study Warns Health Insurance Bill Gives Green Light To Conmen Georgetown University warns bill is "a license to steal."

    Acura Integra Is Most-Stolen Car in America Interest in street racing driving heists of performance models.

    Dennis Threatens Gulf Coast Tropical Storm Dennis, building quickly to hurricane status, poses a danger to the entire Golf Coast.

    Overweight Americans Weigh Down Insurance System Cost of treating obesity up 1,000 percent over 15 years, study finds.

    Global Healings Ordered to Pay Restitution to Florida Consumers Company claimed its "bonds" eliminated the need for insurance.

    Tremors Rattle Californians Now's the time to check on earthquake insurance, make sure your home and family are ready for the next quake.

    Hurricane Season Is Time to Review Insurance Coverage Homeowners policies don't coverage most hurricane damage. Californians should review their landslide coverage.

    Ohio Sues AIG Ex-CEO Greenberg Suit seeks to stop transfer of $2 billion worth of stock to Greenberg's wife.

    New York Sues AIG State cites "pattern of fraud" at nation's largest business insurer.

    Insurers Defend Use of Credit Scores Reviewing customers' credit scores saves consumers money, insurers claim.

    West Virginia Sues Acordia for Insurance Steering Attorney general says company led clients to companies based on secret commissions.

    Disability Insurance: A Broken Promise Inadequate regulation, seamy business practices leave frugal, hard-working policyholders helpless when their insurers desert them.

    Chicago Insurance Broker Settles Kickback Probe for $27 Million Arthur J. Gallagher & Co. threw business to pre-selected insurers.

    Nationwide Insurance To Make Restitution Company deceived consumers into buying policies beyond their financial means, Massachusetts charged.

    Congress Set to Gut State Insurance Protections, Groups Charge SMART Act called an industry "wish list" that removes consumer protections.

    Report Finds No Link Between Doctors' Premiums and Malpractice Suits While premiums climb, malpractice payouts decline, study finds.

    North Dakota Limits Use of Cars' Black Boxes By Insurers Many motorists don't realize their car may be recording their every actgion.

    Florida Sues Company Selling Phony Insurance Bonds Global Healings Society claims its bonds make insurance unnecessary.

    One-Fourth of Workers Will be Uninsured by 2013: Study More than 4,500 additional annual deaths likely, researchers warn.

    No-Fault Insurance More Expensive, Study Finds Rates decline when no-fault eliminated, researchers say.

    Car Dealers May Offer Walkaway Insurance Policy would cover owners who were "upside down" in their equity.

    Aon Settles Insurance Corruption Case Company will pay $190 million to its policyholders and reform its business practices.

    Florida Files Racketeering Charges Against Tenet State charges Tenet inflated charges for medical procedures to the detriment of Florida public hospitals.

    Study: Insurance Consumers Often Don't Get What They Pay For Higher commissions usually mean higher premiums, not better service.

    Florida Lawsuit Accuses Chubb, Prudential of Bid-Rigging, Price-Fixing Agents offered kickbacks to disregard client needs, suit charges.

    Three More Guilty Pleas in Insurance Scandal A senior executive at Marsh & McLennan and two AIG employees have pleaded guilty to criminal charges in the insurance bid-rigging scandal.

    Marsh & McLennan to Pay $850 Million Giant insurance broker apologies for "unlawful" and "shameful" actions.

    Class Action Suit Targets Major Insurers Boston attorney preparing class action suit accusing major insurance companies of price-fixing and consumer fraud.

    State Farm Pays $40 Million to Settle "Branded" Car Title Issue In multi-state agreement, insurer will compensate owners of vehicles that had been wrecked or stolen.

    Unum Provident Agrees to Review Denied Disability Claims Cost of New York settlement estimated at $100 million.

    California Insurance Corruption Probe Advances Universal Life signs consent decree, agrees to cooperate with prosecutors.

    Zurich American Insurance Executives Plead Guilty Two are expected to testify in New York probe of insurance industry corruption.

    Florida Subpoenas Insurers The subpoenas seek documents and records that involve questionable fee arrangements and possible bid-rigging.

    NY Insurance Broker Charged With Fraud, Antitrust Violations Attorney General Spitzer charges ULR steered business to insurers in exchange for lucrative payoffs.

    California Joins Insurance Crackdown State proposes new measures to ensure brokers put client's interest first.

    Widespread Insurance Corruption, NY Charges Marsh & McLennan Companies and two executives charged in a widening investigation of fraud and anti-competitive practices.

    Court Extends Deadline to File Claims Against Warranty Gold No new date established for consumers who bought extended warranties on their cars.

    CVS Settles Pennsylvania Suit Pharmacy chain failed to grant state-mandated discount to auto accident victims.

    Massachusetts Drills Delta Dental State charges dental plan used misleading advertising, marketing practices.

    Bumper Matching a Mish-Mash Difference in bumper height between cars and sport utility vehicles leads to costly accident repairs

    College Bound? Don't Forget the Insurance College students should have renters' and health insurance.

    Insurance Riles Kansans Auto insurance leading cause of consumer complaints to Kansas agencies, report finds.

    Homeowners Hung Out To Dry By Arbitration Clauses Public Citizen wants insurance commissioners to take action.

    Cigarettes' Role in Fires Growing Fire safety group wants more states to require self-extinguishing cigarettes.

    GEICO v. Google Insurance company tries to block consumers' access to ads for anyone but itself.

    States Study Insurers Use of Credit Scores Companies challenge legality of study. Alabama withdraws.

    Class Action Charges Insurers Chiseled Hurricane Victims Insurers low-balled damage estimates, suit claims.

    Class Action Targets Caremark Forced policyholders to order drugs through mail-order pharmacy, suit charges.

    Major Employers Will Form Insurance Pool For first time, part-time and contract employees will have access to coverage.

    Reverse Mortgage Can Help with Long-Term Care Many elderly could escape nursing homes with cash from home equity.

    Texas Wins Refunds for Policyholders Companies charged customers for "betterment" when paying claims on auto repairs.

    Florida Insurance Scam Hits Seniors Five arrested in fraud ring that allegedly netted more than $2 million in phony sales commissions.

    Long-Term Care Premium Hikes Surprise Policyholders "Guaranteed" premiums increase as much as 50 percent.

    Health Plans Withhold Coverage Information, NY Charges Half of all plans surveyed failed to tell consumers whether their conditions would be covered.

    Eight Insurers Hardest Hit by Isabel A few big companies face up to $1 billion in claims.

    Life & Health Insurers Profits Plunge 38% Industry profitability in first three months of 2003 reached its lowest level in 10 years.

    9/11 Losses Reach $9.3 Billion Effects felt by consumers and businesses in higher insurance premiums, reduced dividends.

    Pennsylvania Recovers Another $9 Million from Summit Life Case Money will be used to pay consumers' policy claims.

    Health Insurance Scams Hit Thousands Poor economy drives many to unlicensed insurance plans.

    Auto Premiums Up, Satisfaction Levels Off J.D. Power study finds consumers tolerating higher premiums.

    PayPal - The New Blackbeard? States probe PayPal insurance scheme as consumers fume and SEC looks at money-market management practices.

    General Electric, Merrill Lynch, Clarica Insurance Downgraded Weiss Ratings downgrades 54 companies, upgrades 21.

    Florida Set to OK Credit-Insurance Link Gov. Bush set to sign industry-sponsored bills.

    72 Health Insurers Upgraded, 11 Downgraded

    Montana Slaps Farmers Insurance for Credit Scoring Premiums higher for consumers with department store credit cards than for those with oil company cards, state charges.

    Georgia Fines UnumProvident $1 Million A.M. Best lowers Unum's debt rating.

    Associates Insurance, 72 Others Downgraded in Latest Ratings Only two property, casualty companies upgraded.

    71 Life and Health Insurers Downgraded; 22 Upgraded in Recent Review Stock market losses deplete assets.

    Maryland Fines CareFirst $400,000 Company blames problems on "rapid growth."

    Court Order Closes MedPlan Canadian scheme targets Americans with phony health discount, credit protection, FTC charges.

    California Doctor Wins $31 Million in Suit Against UnumProvident At least 2,500 other suits pending against nation's largest disability insurer.

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    Consumer News

    May 12 2008

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