The Book

THE FARM BUREAU BIBLE

BOOK #1

THE MCKINSEY SLIDES

BOOK #2

BAD FAITH LITIGATION IN MISSOURI

BOOK #3

ARSON FRAUD AND FIRST PARTY INSURANCE LAW

#1: The McKinsey Slides. This Is not an actual book, it is a report consisting of 12000 presentaion slides and over 13,000 pages, prepaired for the insurance industry by the Worlds largest consulting firm. Farm Bureaus policies will follow this report exactly as written. The report was started in 1992 and finished in the year 1997. It is the result of the insurance company leaders getting their heads together and deciding they wanted to raise their already high profits even more. McKinsey advised them the only way to raise profits was to payout less in claims payments. The only way to do that was to change the existing structure of insurance companies having a fudiciary duty to the policyholders to putting the stockholders first at the direct expense of the policyholders. This was especially suited to Farm Bureau because Farm Bureau is the sole stockholder of their Town and Country Insurance Company. These slides have been ordered opened to the public by a Judge but so far the insurance company holding them is in contempt of court for refusing to release them. They will probably never be released because of the flood of lawsuits that would follow, as these slides contain absolute, direct evidence of criminal activity by Farm Bureau and many other insurance companies which would prove they engaged in unfair and bad faith claim practices. I will list a small fragment of the contents that have leaked out:
(These are exact quotes used in the Mckinsey Slides.)
1) Radically alter your approach to the business of claims.
2) Aggressively pursue increased profits at the direct expense of policyholders.
3) Work to alter rules and regulations concerning bad faith laws because this new scheme will violate existing laws.
4) Force innocent policyholders to litigate legitimate claims rather than settle with them.
5) Initiate the "good hands strategy" (pay small claims quickly and fairly) or the "boxing gloves strategy" (fight to the end).
6) Promote the use of the "Colossus" program for estimating claims which automaticly cheats to the tune of 20%.
7) Offer low "take it or leave it" settlements based on "Colossus" estimates.
8) Expect 90% of policyholders to succumb with in six months due to economic pressures and give up without a fight.
9) Deliberately abuse the civil justice system as a weapon of attrition against the 10% who refuse to accept the low offers.
10) Expect aggressive litigation to yield positive results.
11) To activly incite significantly higher levels of needless, frivolous litigation as a tactical strategy to delay or diminish legitimate claims.
12) McKinsey stated that fewer policyholders and their lawyers would be willing or able to litigate, and their only other choice would be to accept about 40 cents on the dollar for legitimate claims.
13) One McKinsey slide depicts an alligator sitting and waiting for a victim. The caption reads by postponing payment, insurance companies can hold money longer and wear down policyholders to the point of dropping a challenge.

#2: Bad Faith Litigation In Missouri. This is the book a Brown and James lawyer Mr. Robert W Cockerham co-authored which I claim would be better titled "how to deny policyholders claims". It is a very long and technical book. It sells for several hundred dollars at a legal book publishing company. I was able to find a copy at the UMKC law library in Kansas City Missouri. I believe it will be clear it's not written to assist insurance policyholders. It would be closer to a trainning manual for insurance companies to avoid paying claims.

Title Bad Faith Litigation in Missouri / David P. Bub, Robert W. Cockerham, John G. Simon.
Published Eau Claire, WI : National Business Institute, c1997.
MU LAW REFERENCE KFM7951.F7 B82 1997 LIB USE ONLY OCLC # 38115277
Description 119 p. ; 28 cm.
Contents: The elements of bad faith -- Related causes of action -- Pre-suit investigation -- The in's and out's of discovery -- plaintiff's view -- The in's and out's of discovery, defendant's view -- Ethics it's legal, but is it right? -- Trial strategy, the beginning of the end.
Subjects Bad faith (Law) -- Missouri.
Insurance law -- Missouri.
Actions and defenses -- Missouri.
Civil procedure -- Missouri.

#3: Arson fraud and First Party Insurance Law.  Copyright 2001, Lawyers research Institute. This book is by Robert W. Cockerham, Russell F Watters, Michael B. Mcguire, and David P. Bub, all Brown and James lawyers being either shareholders or principles in the firm. Even Robert Brady and David Laws were complicit in the books creation by cite checking and reviews. I previously thought book 1 and 2 were trainning manuals for insurance defence lawyers but this one really takes the cake. It not only assist defense lawyers but assists insurance agents, adjusters, and executives in how to delay or even avoid paying claims all together. Explicitly, giving instruction in how to begin a delay or avoidance in the early days of a loss claim.

(My analysis of "Arson Fraud and First Party Insurance Law")
Chapters one and two describe the neccessity of getting a competent team of experts together to find every possible angle to delay and deny the claim. knowing that if it's not done exactly right it could result in a multi million dollar bad faith claim from the insured. A few of the experts mentioned are, adjuster, attorney, cause investigators, private investigators, accountant, engineer, appraiser, underwriter, agent, and contractor. The examination under oath is described as the most powerful tool in Farm Bureaus arsenal. Importance is placed on doing all this with-out creating any chance of the insured sueing Farm Bureau for Vexatious Refusal. The importance of protecting Farm Bureaus claim file from the insureds lawyer is stressed, and many tactics are available to prevent the insured from aquiring it. Farm Bureau has instigated a policy of eliminating all paper work and going to strictly electronic media. This in essence will eliminate the paper trail.
Chapter six describes what farm Bureau must not do to avoid legal damage suits and/or breaking state regulations. Twenty-eight specific do nots are mentioned. These do nots are designed to allow Farm Bureau to go to the most extreme limit against the insured with-out opening Farm Bureau to the danger of being liable for the repeatedly stated bad faith, vexatious refusal, punitive damages, and State violations.

1) DO NOT, upon first notification of the claim, hesitate to provide to the insured a blank proof of loss form, along with a certified letter detailing the insured's duty under the policy to provide all the information requested. This should be accomplished within 10 days of the notification.

2) DO NOT fail to request that the insured prepare an inventory of damaged personal property showing in detail, the quantity, description, actual cash value and amount of loss and provide all supporting bills, receipts or other documents when returning the completed proof of loss .
3) DO NOT accept a proof of loss which is not completely filled out and executed by the insured or the insured's authorized agent.

4) DO NOT provide to the insured estimated values of the damaged personal property or countersign inventories .

5) DO NOT provide to the insured the company's estimates concerning the loss until and unless a complete analysis of the loss has been accomplished. Avoid quick estimates of value which may later prove inaccurate .

6) DO NOT note opinions or any other information other than room descriptions, i.e., living room, bedroom, or geographical information such as looking north or looking south, in photograph logs .

7) DO NOT exchange values or scope with the insured's public adjuster.

8) DO NOT provide the insured with advance payments. If such advances are made, they should be minimal and the insured should be required to provide documentation .

9) DO NOT hesitate in obtaining a complete copy of the underwriting file .

10) DO NOT hesitate in obtaining a complete copy of the agent's file.

11) DO NOT hesitate in checking the Property Insurance Loss Register (PILR) or other similar services for prior claims .

12) DO NOT hesitate in sending a cause and origin investigator to the scene

13) DO NOT hesitate in contacting public officials to secure any reports generated .

14) DO NOT allow the insured to interfere with the recorded statement.

15) DO NOT take a recorded statement if the insured has retained counsel without the permission of the insured's counsel.

16) DO NOT state opinions or conclusions that the insured's claim is suspicious, fraudulent, etc. to the insured or any third party .

17) DO NOT discuss the claim with the insured or the insured's agents after you have retained counsel, without first consulting with your counsel.
18) DO NOT make offers of settlement.
19) DO NOT note in the claim file that settlement should be considered prior to the completion of the investigation .

20) DO NOT note in the claim file impressions concerning the insured's dishonesty, sincerity, emotional distress, and so forth .
21) DO NOT fail to send all correspondence via certified mail and marked "Personal and Confidential.

22) DO NOT send the entire claim file to any public agency requesting it before consulting your counsel.

23) DO NOT rely upon public officials, i.e., police, fire department, prosecuting attorney or public investigators, to do your investigation .

24) DO NOT hesitate to retain experts needed for a full investigation, i.e., attorneys, cause and origin experts, accountants, appraisers, investigators, and others .

25) DO NOT reference reserves or values on normal investigation reports or diary notes .

26) DO NOT participate in interviews with the electronic and print media .

27) DO NOT describe the investigation as an "arson investigation."

28) DO NOT settle any part of a claim without a complete and final release having been executed by the insured and any other person or entity which has an insurable interest.

            (will be continued as my time allows).

FARM BUREAU LIES

Missouri Farm Bureau has denied far too many claims, and sued hundreds of it's members in the last 5 yrs. If you insure with them you may be their next victim.