Bay Area Insurance Agent Alleges Farmers Issued Questionable Cancellations
A Fremont-based Farmers Insurance agent is speaking out against the company, alleging that it sent cancellation letters to his clients claiming they had requested to cancel their policies when, in fact, they hadn’t.
Jeffrey Carvalho, a 37-year veteran of the insurance industry and owner of a Farmers Insurance franchise, says he’s seen hundreds of cases where clients were unaware of the cancellation requests.
“Is this the new normal?” Carvalho questioned. “They need to stop it.”
Carvalho shared emails with 7 On Your Side where he raised his concerns with Farmers’ upper management. He specifically asked why the company was sending out letters to his clients claiming they had requested to cancel their coverage when they hadn’t.
Carvalho said that many of his clients, mostly elderly individuals aged 65 and older, were upset upon receiving these letters. He claimed that his team had to “fight on the phone” to get their clients’ coverage back, resubmitting thousands of documents to no avail.
Farmers Insurance responded to the allegations, stating that “insured request cancellations are only processed when requested by the insured.” They encouraged customers with questions to connect with their agent or a customer service representative.
However, Carvalho said that his clients had been trying to resolve the issue for over a year with little success until 7 On Your Side got involved. After the investigation, Carvalho claimed that Farmers changed their approach, addressing the concerns of both agents and customers.
The situation highlights the importance of consumers reviewing their denial letters carefully, as Carvalho noted that there are often errors that need to be reported to their agent.
7 On Your Side continues to investigate claims of questionable practices in the insurance industry, including issues with policy cancellations and non-renewals.
For those in the San Francisco Bay Area with consumer-related issues, 7OYS’s consumer hotline offers a free mediation service. Consumers can report their concerns and seek assistance.
