Monday, August 6, 2007

Bloomberg News Reveals Insurance Secrets to Obscene Profits

by Ana Maria

From the Mississippi Gulf Coast to the Mid-West to California, insurance companies routinely low ball claims estimates at a time when policyholders are most vulnerable. Bloomberg News recently published Home Insurers' Secret Tactics Cheat Fire Victims, Hike Profits, a riveting and insightful article that disclosed the industry’s dirty, unknown secrets.

''Fighting an insurance company is like staring down the wrong end of a cannon,'' Dr. Bennett said after fighting his insurance company. The New Hampshire physician lost his five-bedroom home in a 1993 fire filled with antiques and fine art. Replacement costs? $20 million. The insurance company offered $1.7 million. Not quite 20% of the policy’s worth.

Read more at A.M. in the Morning!

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