AAJ Names Ten Worst Insurance Companies in America
It’s no secret that the 10 worst life insurance companies often play by their own rules – especially when those rules specifically save the company money.
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UPDATED: Jul 12, 2023
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Jul 12, 2023
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
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The American Association of Justice (AAJ) has named the ten worst insurance companies in America based on claim denials, premium increases and refusing insurance to those who need it most. So, who’s on the list? Some names – and what they did to make the list – might surprise you.
How the 10 Worst Insurance Companies Report was Conducted
According to the AAJ’s recent report entitled, The Ten Worst Insurance Companies in America – How They Raise Premiums, Deny Claims and Refuse Insurance to Those Who Need It Most, researchers investigated thousands of court documents, as well as records from the Securities & Exchange Commission (SEC), the Federal Bureau of Investigation (FBI) and state insurance departments. They also looked at news reports and testimony from the insurers’ former agents and adjusters. The report provides conclusions about the insurance industry as a whole, lists the ten worst insurers and explains why they made the list.
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Conclusions About the Industry
The AAJ came to the following conclusions about the insurance industry as a whole:
- Companies consistently put profits over policyholders. The report concludes that many insurance companies may “talk the talk”, but don’t “walk the walk.” They may advertise that your “in good hands”, are “like a good neighbor” or “provide the strength to be there”, but fall short when it comes to actually serving their customers.
- Companies continually deny, delay and defend. Insurance companies make more money when they pay out fewer claims. Obvious? Yes. Ethical? No. The industry as a whole routinely denies, delays and defends claims – all in the name of the “bottom line.”
- Profits and salaries are skyrocketing.The property/casualty and life insurance industries average $30B in profits every year. In fact, the U.S. insurance industry as a whole receives premiums of over $1 trillion (with a “T”) every year and has assets of $3.8 trillion. The Chief Executive Officers (CEOs) of the ten insurers in the report averaged an annual salary of nearly $9 million in 2007.
Who made the list?
These are the 10 worst health insurance companies in America for denying insurance claims, raising premiums, refusing insurance to those who need it most, and many other reasons:
To learn more about what each of the above insurers did to earn a place on the list, click on the names above.
Insurance companies play by their own rules
It’s no secret that the 10 worst life insurance companies often play by their own rules – especially when those rules specifically save the company money.
Case Studies: The Ten Worst Insurance Companies in America
Case Study 1: InsureSure Insurance Company
InsureSure Insurance Company has earned its place on the list due to its consistent denial of insurance claims, even in cases where the policyholders clearly meet the eligibility criteria. The company is known for implementing strict and unfair guidelines that often lead to claim rejections, leaving policyholders in financial distress and without the coverage they expected.
Case Study 2: SecureLife Assurance
SecureLife Assurance has faced significant criticism for its unjustified premium increases. Despite promising competitive rates and affordable coverage, the company frequently raises premiums without providing a reasonable explanation to policyholders. Many individuals find themselves burdened with sudden and substantial premium hikes, making it difficult to maintain their insurance policies.
Case Study 3: TrustGuard Health Services
TrustGuard Health Services has made the list due to its practice of refusing insurance to individuals with pre-existing conditions. Despite the vital need for healthcare coverage for these individuals, TrustGuard employs underhanded tactics to avoid providing insurance to those who require it the most. This unethical behavior puts vulnerable individuals at risk and highlights the company’s profit-driven approach.
Case Study 4: LibertyFirst Insurance
LibertyFirst Insurance has gained notoriety for its deceptive practices when it comes to claim settlement. The company intentionally delays and obstructs the claims process, forcing policyholders to endure extended waiting periods and unnecessary hurdles. This tactic prioritizes company profits over timely assistance, discouraging claimants and reducing payouts.
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.