Share this on:
 E-mail
108
VIEWS
0
COMMENTS
 
SHARES
About this iReport
  • Not verified by CNN

  • Click to view Concerned49's profile
    Posted October 21, 2012 by
    Concerned49
    Assignment
    Assignment
    This iReport is part of an assignment:
    Breaking news

    More from Concerned49

    Corporate Greed - Alive and Well in Michigan

     
    As a policyholder for over 20 years, I had reason to believe that my personal information was compromised so I requested a computer log to verify who within Frankenmuth’s organization had accessed my policy information which includes significant personal and financial data. Frankenmuth's policy per it's web page specifically purports to protect customer privacy and limits access internally to employees who have a business need to know. In actuality however, by their own admission, Frankenmuth Insurance does not have a computer system that allows them to determine who has viewed customer information.
    When asked for information on who accessed my information, I received a letter from their corporate attorney communicating what I would consider to be bogus rhetoric claiming “as a result of technology-related problems in retrieving such information” my request was declined A subsequent letter confirms that Frankenmuth’s computer systems purportedly do not allow them to track usage and determine who is viewing/accessing claims and customer information which means they have no way of managing customer and privacy for either first party insured’s or third party claimants. I can provide their corporate lawyer's letter's if you'd like - what insurance company has a corporate attorney not directly employed by the company answer a policyholder inquiry unless there is something to cover such as a system that doesn't allow for tracking usage.
    Frankenmuth Insurance company also purports in its commitment statement to policyholders to:

    Frankenmuth Insurance built a solid foundation adhering to its fundamental
    principles of honesty, integrity, unsurpassed customer service and conservative
    business practices.

    With much emphasis on Corporate Governance and common sense, this company located in Frankenmuth Michigan regularly violates its own commitment to policyholders by engaging in egregious conflicts of interest with board members that not only lack integrity, but are of blatant poor judgment for personal gain and detrimental to policyholders.
    The only policyholders invited to their annual policyholder meetings are employees and retirees of the company so that no one will vote against or challenge their elections.
    The board members are taken on annual trips with their spouses the week of the annual board meeting wherein on the last day, they (the board) are asked to vote on executive pay and bonuses. After a week of being wined and dined at exclusive resorts such as the One and Only Palmilla in Cabo and the Winn in Vegas the Frankenmuth executives know that the board will give them exorbitant raises and bonuses which is information they again refuse to disclose because of the public outrage their behavior would cause, adversely impacting their business. Getting what they want from the board afforded CEO Stanton a 12,000 sq foot retirement home newly constructed on a 1 million dollar plot of land at Bay Harbor overlooking Lake Michigan.
    One trip that Frankenmuth executives took 90 people on (those people were executives and spouses and agents and spouses) cost 5 million dollars for one week. That translates to about $53K per person. Bill Schutte pretends to care about the taxpayers dollars and how they are spent yet he thus far has refused to require Frankenmuth to disclose it's egregious spending of lavish trips and entertainment and or investigate the clear conflicts of interest with its board that are costing the taxpayers of Michigan huge dollars in increased premiums. On top of all of this, Frankenmuth admittedly has a computer system that does not track its employees use of policyholder information meaning the public is not safe from potential identity theft nor is the company safe from internal theft.
    Frankenmuth uses credit reports to jack prices of policyholders up - someones credit has no bearing on their ability to drive and the executives are laughing all the way to the bank with the board in their pocket from canned elections.

    I would implore you to write to CEO John Benson (address is One Mutual Ave, Frankenmuth Mi 48787) and ask where they hold their annual board meetings, who attends, who funds them and what the executive travel/spending budget is for the year. Ask him about a trip in 2008 for 5 million to Greece for 90 people and ask how this all impacts the premiums Michigan policyholders pay. You will get stonewalled due to the cover up that has gone on for years with this company. As a mutual company owned by their policyholders, they should reveal this information however they refuse.

    What do you think of this story?

    Select one of the options below. Your feedback will help tell CNN producers what to do with this iReport. If you'd like, you can explain your choice in the comments below.
    Be and editor! Choose an option below:
      Awesome! Put this on TV! Almost! Needs work. This submission violates iReport's community guidelines.

    Comments

    Log in to comment

    iReport welcomes a lively discussion, so comments on iReports are not pre-screened before they post. See the iReport community guidelines for details about content that is not welcome on iReport.

    Add your Story Add your Story