Fraud is generally defined as an act done with the intent to deceive or misrepresent others in order to attain or secure some unlawful gain or deprive a victim of a legal right. Different courts, states, and bodies of law throughout our country have their own unique causes of action based in fraud, or where … Continue Reading
State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. It is listed as the 35th largest company in the Fortune 500. Big companies sometimes have big problems. State Farm had a one billion dollar judgement problem that now may be a seven billion dollar problem.… Continue Reading
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
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
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.… Continue Reading
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:… Continue Reading
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
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… Continue Reading
Cori and Kerri Rigsby keep beating State Farm in their Katrina Qui Tam litigation. This case is one of the final Hurricane Katrina cases still making news.… Continue Reading
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
Tod Hindin is a Los Angeles attorney that I was fortunate enough to meet in the 1990’s. He was one of the most successful claims practice attorneys in the country at the time. His landmark case against State Farm secretly settled during trial.… Continue Reading
I have twice blogged about court orders coming out of the United States District of Arizona Court’s Barten v. State Farm case. Well, time to talk about another great Barten decision hot off the press. By order dated January 31, 2014,1 United States District Judge Cindy Jorgenson upheld the spirit of Federal Rule of Civil … Continue Reading
State Farm was a topic of my speech yesterday at the First Party Claims Conference when an audience member, and then half the room, said State Farm was refusing to accept emails about claims. I am certain many otherwise mature State Farm claims employees must be embarrassed by this unique bad faith claims practice.… Continue Reading
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
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
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
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
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
The Houston Chronicle recently reported that State Farm is seeking a 20% rate increase for all of its Texas policyholders. State Farm insures about 1 out of every 6 homes in Texas, and its rate increase request follows Farmer’s Insurance’s request to increase its rates by 15%.… Continue Reading
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
On the heels of Citizens’ rate increase request and after receiving several rate increases over the past few years, State Farm is once again looking to charge its customers more. This time, State Farm would like to increase the premiums its charges for property insurance by a statewide average of 14.2 % for homeowners policies, … Continue Reading
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
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
Ed Rust, Jr., State Farm’s Chief Executive Officer, must not have liked reading the headlines following a defamation verdict in favor of an Indianapolis restoration contractor that State Farm accused of fraud.… Continue Reading
