When a insurance agent of State Farm has the agency in his name . . . who actually owns the agency?
State Farm has captive agents who have agencies in their names, along with the name of State Farm. For Example, John Jones Agent, State Farm & address. However, neither John Jones nor State Farm appear in the corporate records of the Secretary of State, nor does either name appear in the Tax Records of the County?
State Farm in Katrina claims . . . is telling the Courts that the named agents are actually the individuals who own these agencies . . . but these individuals do not show up in any public records . . . as the owners of the agencies or of anything else.
Who actually owns the agencies which State Farm’s captive agents operate out of? How can we prove who owes these agencies . . . since State Farm is not telling even the Courts the truth?
Help needed from Katrina victims of State Farm.
agents own the agency, they buy into the franchise much like owning a mcdonalds. but state farm is the insurer, the contract is between the customer and state farm, not the agent
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The agent owns the agency, and operates according to a number of rules set by State Farm. State Farm is the insurer and is responsible for paying the claims, although the agent facilitates the claim and handles much of the paperwork.
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Insurance agents are licensed through their state.
If you go to the State Farm website you can look for an agent in your area. Or enter that agent’s name and it should bring up his information.
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I have known and dealt with State Farm agents and with the company for years. Both the agents and company have always claimed that the agents are independent contractors. There are written agreements that can be claimed during the discovery process.
From what I have seen, it always appeared to me that agents acted as employees. I am sure this issue has been raised and challenged many times before.
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Retired claims adjuster.
agents own the agency, they buy into the franchise much like owning a mcdonalds. but state farm is the insurer, the contract is between the customer and state farm, not the agent
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An agency is actually a form of separate business (it is a wholesaler which represents one party to negotiations – in this case, it represents State Farm), so the agents SHOULD be registered as owners of the agencies. Presumably the agents would have incorporated themselves to do this in order to avoid personal liability. State Farm would not own the agencies (although that doesn’t mean they have no liability at all regarding the actions of those agencies, especially if it can be shown that the agents were acting at the direction of or according to the policies of State Farm).
This would certainly be the case in places like Mississippi, but Louisiana has a whole different basis for its legal system (based on French civil law, as opposed to all other states, which are based on English common law), so since I’m not an expert in civil law, if you are in Louisiana, you will probably need someone trained in that system of laws to help you.
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member of the California State Bar.
Sounds like a bunch of franchises like MacDonalds and Bush is to blame for the problems where you are not your State reps It could happen again and I’ll bet you are not ready! Instead of having a good old time in Afghanistan (what the heck is that all about?) Bin Ladin is not Afghani!!!!!!! the troops shuld be in the Southern States helping to restore the peace and well being of Americans who have suffered unbelievable hardships since Katrina
P.S. I am Canadian and Katrina was worse than 911
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Others may tell you the legalities but I just had to vent!
The agents own their insurance agencies. But they are franchisees of State Farm, and have to conform to State Farm policies and practices in order to retain their franchises.
In the last analysis State Farm is the principal and its agents are, well … agents (a legal term for those who represent principals and act under orders from their principals).
So the issue is not who owns the agencies. The issue is that the agents are merely representatives of State Farm, and are there to carry out its instructions.
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Insurance agents in the U.S. are licensed by the state and as such really aren’t wedded to one agency. They can work for any agency that will hire them. As I recall, State Farm used to have several rules regarding the writing of auto policies.
I’m sure that if it says John Jone’s State Farm, John Jone’s either owns or leases the building but I’m guessing he a franchise owner.
There have been so many claims that several insurance companies are trying every trick in the book to get out of paying claims. I read something about a company not paying claims because they claimed it was a flood that caused the damage.
I had been told a long time ago that insurance companies had heavily invested in real estate and we all know where that market has gone recently.
I think the way the people have been treated by the government (FEMA) and insurance agencies is criminal.
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