Ethics

The 1963 Consent Decree is the product of the U.S. Attorney General's Office under the leadership of Robert F. Kennedy and is still in Full Force and Effect today. The 1963 Consent Decree can be read in its entirety at: http://www.ican2000.com/documents/1963/

My understanding of the 1963 Consent Decree is that nearly every known insurance company operating at the time (see note at end) which combined to account for “ Total direct premiums earned in the United States by all insurance companies in 1960 for automobile property insurance amounted to approximately $3,327,815,566” signed the decree.

Among other things, the insurers are accused of having formed an association in early 1940, the purpose of which was ultimately “intended to depress and control automobile material damage repair cost.”

While all of the intentions and means of the 1963 Consent Decree have interest and merit one sentence from one paragraph has captured my attention. Paragraph 16: “On March 12, 1942 the CCC passed a resolution which provided for the organization of Casualty Insurance Claim Managers’ Councils (hereinafter referred to as “Councils”) in various areas of the United States to act as sub-committees of and under the direction and control of the CCC, then known as the Joint Claims Committee."

Of concern to me is primarily the date of March 12, 1942 barely three months after the bombing of Pearl Harbor on December 7, 1941. How could an American Industry, as suggested by the list of companies that signed the Decree, be concerned with claims administration at our Country’s darkest moment? This was an industry that was concerned with personal profit in a time of crisis. Has anything changed?

The ethics established in the early 1940’s should be a caution to us all in how they deal with us in the contracts we have with them.

To see the list of companies that signed the 1963 Consent Decree go to the following linked page and go to the bottom of the page to acquire a Word or Text document. http://www.consentdecree.com/documents/documents.htm