1963 Consent Decree

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The US Department of Justice prepared for a scheduled meeting on November 22, 1963 for documents to be signed pertaining the insurance industry and their dishonest behavior. However, the meeting was delayed due to an assassin’s bullet. Our US Attorney General was compelled to continue while he was grieving the loss of his brother and our Nations 35th President.

While our Nation mourned, Bobby Kennedy and his administration completed their undertaking and signed the documents 5 days later.

Why was it important? - Nearly 20 years of dishonesty, insurance adjusters, appraisers, taking bribes from body shops thus sending people to their favored repair facility.  Insurance Companies / adjusters were convincing accidents victims to get their automobiles repaired at their designated repair facilities, thus, controlling labor rates and repair methods, in an exchange for a continuance of workflow, turn the faucet on and look the other way!  

Investigation -  The US Attorney Generals office commanded a lengthy investigation and concluded, this behavior needed to halt.  Due to egregious activities by insurance companies and others involved, a suit was eminent.  The insurance companies pleaded with then Attorney General Kennedy not to file suit, if they would cease and desist from their dishonest activities. 

Resolution - The 1963 Consent Decree was designed to halt these practices. Representatives from 265 insurance companies signed this legal document; stipulating they would cease from this type of dishonest behavior. “Agreeing not to channel, attempt to channel, coerce, or attempt to coerce people to use certain repair facilities, not to boycott any appraisers or repair shops”.  Lastly “  Not to dictate where shops purchased their goods, services and not to control shop’s labor rates”.  

50 years Later - Has it stopped?  Is this happing to you? 

Sound familiar -Today it’s much worse!  Continuing on a massive scale!  ”Coast to Coast, Northern to Southern borders, within seconds”. 

Disclaimer: This is my understanding from what I have read. You can read the 1963 Consent Decree and form your own opinion. Was it all in vain? Is History repeating itself?


Click here to view the entire 1963 Consent Decree