Archives: State Farm

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Federal District Court Weighs in on Whether Labor Can Be Depreciated in Arriving at an Actual Cash Value Loss Settlement

Whether labor can be depreciated in arriving at an actual cash value property loss settlement has been a hot topic of debate over these past five years. A federal district court in Ohio recently weighed in on the issue in ruling on motions to dismiss two putative class action lawsuits, one against State Farm Fire … Continue Reading

State Farm Claims Whistleblowers Win in United States Supreme Court and May Get Additional Evidence of Wrongdoing

The Rigsby sisters have now prevailed in the highest court of the land in their decade long fight against State Farm.1 The Rigsby sisters were catastrophe adjusters working for State Farm on Hurricane Katrina claims. I have noted this case for some time: The Insurance Adjuster’s Dilemma: Tell the Truth and Face the Consequences By … Continue Reading

State Farm Operation Guidelines Regarding Wind and Hail Damage to Composition Roofs

Insurance companies routinely have instructions for their claims adjusters on how to adjust various types of losses. State Farm has some of the most detailed claims guidelines in the industry. I have often stated that for first-party claims, relevant claims guidelines should also be provided to the policyholders who suffer losses. Why not?… Continue Reading

State Farm Overcharged Texas Policyholders

I have to admit, I missed this story when it first came out a few weeks ago. Although State Farm did not admit wrongdoing, read the article and draw your own conclusions (the italicized portions are key). As reported by The Dallas Morning News on February 27, 2015:… Continue Reading

State Farm’s ACE Program

I have previously blogged about the decisions coming out of the United States District Court of Arizona in the Barten v. State Farm case. Recall, my Barten blogs have largely concerned State Farm’s corporate profit augmentation programs, whether the programs are called ACE or something else. Well, good orders just keep coming out of the … Continue Reading

State Farm More Concerned With Its Own Interests Than Policyholder Safety

In Florida, when a policyholder reports a sinkhole loss, carriers are required to conduct a subsidence investigation. The purpose of this law is to protect Floridians’ lives and property. In this situation, policyholders are concerned damages to their properties are getting worse, and it is common for them to fear the worst, a catastrophic event.… Continue Reading

The Insured Customer is Still the Customer After the Loss

An insurance customer who has a loss is often treated as a threat by the insurance company. Claims managers and managers of claims managers are often to blame for creating a claims culture in which their customers are treated as common criminals because the claims department wants to minimize benefits paid rather than fully indemnify … Continue Reading

State Farm Guilty of Defamation

The Indiana Court of Appeals affirmed a $14.5 million dollar defamation verdict against State Farm in State Farm Fire & Casualty Company v. Radcliff.1 State Farm was found guilty of defaming a roofing contractor following hail storms in Indiana in 2006. Roofers, restoration construction contractors, State Farm policyholders, and consumer advocates should study this case because it … Continue Reading

State Farm Found Guilty of Fraudulent Claims Conduct in Rigsby Qui Tam Case

One of the last remaining Hurricane Katrina cases is the Qui Tam litigation involving the Rigsby sisters’ allegations that State Farm fraudulently overcharged the government when handling NFIP flood claims. The Rigsby sisters alleged State Farm overpaid NFIP flood claims it adjusted to reduce the amount owed under the all risk policies State Farm issued. … Continue Reading

State Farm Under Investigation in Texas Confirms the Importance of Consumer Protection Laws

On September 7, 2012, Bloomberg Businessweek published an article regarding an investigation by Texas District Attorney Gregg Cox into State Farm Lloyds alleged misconduct in purposely underpaying and wrongfully denying policyholders’ Hurricane Ike claims: Cox, whose office has state-wide jurisdiction, would not confirm the substance of the investigation or say whether it is related to … Continue Reading

State Farm Faces Criminal Probe Regarding Roof Claim Handling

State Farm advertises extensively to promote an image of providing "Good Neighbor" service. Since many insurance companies have a less than sterling reputation, this marketing strategy is important. So, when ABC News has a headline that reads, State Farm Faces Criminal Investigation Over Hurricane Claims, you can bet executives at State Farm’s home office are asking … Continue Reading

State Farm Rigsby Qui Tam Matter is Ready for Trial

Reports indicate that District Court Judge Halil S. Ozerden, sitting in the Southern District of Mississippi, is ready to set the trial date in the Rigsby case. If you have not followed the litigation, Chip Merlin wrote about the case in his posts, State Farm Whistle-Blower Suit Regarding Altered Expert Reports Continues and Thoughts Regarding … Continue Reading

State Farm Allegedly Defrauded the Illinois Supreme Court and Gave Millions to a Judge Who Would Overturn a Billion Dollar Verdict Against It

The Chicago Tribune reported that State Farm allegedly defrauded the Illinois Supreme Court by covering up that it funneled millions of dollars into the campaign of Illinois Supreme Court Judge Lloyd Karmeier. After he was elected to the Illinois Supreme Court, Karmeier refused to recuse himself from a pending State Farm appeal and voted to … Continue Reading