Shane Smith wrote about a big policyholder win against Allstate in this weekend’s post, Another Court Ruling on Improper Depreciation of Labor. Today, the same Court of Appeals ruled the same way against State Farm.1
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Repairability of Damaged Portions of a Structure: Is Rot or Wear and Tear Always Excluded?
Property which simply wears out or is damaged by rot is never covered, right? That is what most insurance company adjusters and attorneys will say. Indeed, they will defiantly state something like: “This is a property insurance policy and not a maintenance contract.”
So, what happens if the damaged portion of the property cannot be repaired because the underlying property has pre-existing rot or is simply worn out?
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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 & Casualty Company1 and one against Allstate Indemnity Company.2
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State Farm Buys It Way Out of a Billion Dollar Judgement for $250 Million
Law360 reported yesterday that State Farm settled a RICO lawsuit against it for $250 Million. I previously have noted this amazing, made-for-movie case in Did State Farm Buy Its Way Out of a Billion Dollar Judgment.
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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 Raising Claim Practice Misconduct
- State Farm Whistle-Blower Suit Regarding Altered Expert Reports Continues
- State Farm "Qui Tam" Hearing Raises Issues of Wrongful Adjustment
- Flood Adjustment Methods Discovered in Qui Tam Case
- Financial Pressures on Insurance Vendors and Experts
- State Farm Rigsby Qui Tam Matter is Ready for Trial
- State Farm Found Guilty of Fraudulent Claims Conduct in Rigsby Qui Tam Case
- Rigsby Sisters Beat State Farm Again and HAAG Qui Tam Settlement Disclosed
- Rigsby Sisters Win Qui Tam Appeal Regarding Fraudulent Handling of Katrina Flood Claims
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?
State Farm Employee and McKinsey Insurance Consultant Accused of Fraud
Ed Rust must have muttered, "you’ve got to be kidding," after learning that a McKinsey & Company consultant and State Farm employee were accused of siphoning about $900,000 in consulting fees and expenses.
Rigsby Sisters Win Qui Tam Appeal Regarding Fraudulent Handling of Katrina Flood Claims
Cori and Kerri Rigby have won their appeal and have been granted the ability to expand their claims of fraud regarding the adjustment of NFIP claims from Hurricane Katrina.1 The Fifth Circuit Court of Appeals found:
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:
Another Good Discovery Order Concerning State Farm
I have published on four occasions concerning good orders coming out of the Barten v. State Farm case.1 Well, it seems more courts are issuing favorable discovery orders, including a recent ruling from a federal district court in Arkansas.2