Torchmark Ranked One of Ten Worst Insurance Companies in America

Torchmark, a holding company for subsidiary companies who sell low cost burial, cancer and life insurance policies, was ranked one of the ten worst insurance provider companies in America by the American Association for Justice (AAJ) for its bad faith and discriminatory insurance practices.

Torchmark’s bad faith insurance practices

According to the AAJ report, Torchmark and its subsidiaries, Globe Life and Accident Insurance Company, United American Insurance Company and Liberty National Insurance, have been accused of bad faith insurance practices, such as:

• Discriminating against minorities. Torchmark has been accused of discriminating against minorities by using race-based underwriting practices and refusing to provide insurance to non-English speaking persons. Liberty National paid $6 million in a lawsuit where the insurer charged black customers a third more than white customers for burial policies.
• Lying to policyholders. Both Globe Life and United American have been accused of lying to elderly policyholders by telling them that their insurance would be discontinued once they reached the age of 65 – even though the policies were guaranteed for life. In 2003, United American settled charges in Minnesota of pressuring elderly clients into buying more expensive insurance that provided fewer benefits than they already had.
• Engaging in fraudulent activity. United American agents were accused of sending out mass mailings to the elderly concerning Medicare supplement insurance. However, they merely used the mailing as an opportunity to sell other products. Ironically, the scam was reported to authorities by one of the company’s own employees.

FreeAdvice.com survey: 50% or more of Torchmark’s customers very unsatisfied

According to customer satisfaction ratings on FreeAdvice.com, 50% or more of Torchmark’s customers are very unsatisfied with the insurer and its subsidiaries. Here’s how survey respondents rated the insurers:

Globe Life and Accident Insurance Company

Extremely Satisfied: 0%
Very Satisfied: 25%
Somewhat Satisfied: 25%
Unsatisfied: 0%
Very Unsatisfied: 50%

United American Insurance Company

Extremely Satisfied: 29%
Very Satisfied: 2%
Somewhat Satisfied: 0%
Unsatisfied: 7%
Very Unsatisfied: 61%

Notes: Since Torchmark is a holding company for subsidiary companies, survey information is not available for Torchmark individually. Survey information was not available for Liberty National Insurance.

Customers posted the following comments about Torchmark and its subsidiaries on the website:

• Terrible customer service, nobody knows what is going on. Nobody returns emails at all, and only one person who said they would return my call ever did. I am going on over a month now getting a refund on a premium that was not supposed to be debited in the first place. I canceled my policies and would not recommend them at all. – referring to Globe Life and Accident Insurance Company.
• They misled us about the coverage and were overall very unhelpful. The amount that was covered was actually surprisingly limited. I would not recommend them to anybody. Regardless of their decent price… pay more to get better coverage. – referring to United American Insurance Company.

Notes: Since Torchmark is a holding company for subsidiary companies, customer comments are not available for Torchmark individually. Customer comments were not available for Liberty National Insurance.

If Torchmark or one of its subsidiaries has acted in bad faith regarding your valid insurance claim, contact an attorney whose practice focuses in this area of the law. Consultations are free, without obligation and strictly confidential.

Case Studies: Exploring Insurance Practices and Customer Experiences

Case Study 1: Delayed Claim Settlements

John, a policyholder with Torchmark’s subsidiary, Globe Life and Accident Insurance Company, filed a claim for a significant medical expense. However, the insurance company continuously delayed the claim settlement, causing financial strain and frustration for John. This case study examines the impact of prolonged claim processing times and the potential consequences for policyholders.

Case Study 2: Denial of Coverage

Sarah, a policyholder insured by United American Insurance Company, suffered a serious injury in a car accident. Despite having what she believed to be adequate coverage, the insurance company denied her claim, citing unclear policy terms and exclusions. This case study explores the challenges faced by policyholders when their claims are wrongfully denied and the steps they can take to seek justice.

Case Study 3: Underpaid Claims

Mark purchased a life insurance policy from Torchmark’s subsidiary, Liberty National Insurance. When his spouse passed away, Mark submitted a claim for the life insurance benefits. However, the insurance company undervalued the claim, providing him with significantly less than the policy’s stated coverage. This case study examines the issue of underpaid claims and the importance of understanding policy terms and coverage limitations.

Case Study 4: Discriminatory Practices

Lisa, a customer of Torchmark, experienced discriminatory treatment when attempting to purchase a burial insurance policy. Despite meeting all the eligibility criteria, she faced unfair hurdles and was ultimately denied coverage based on her age and pre-existing medical condition. This case study sheds light on the issue of discriminatory practices in the insurance industry and the impact on individuals seeking coverage.