CNN: State Farm penalized in suit over tornado claims.

[Dr.Phool]

These suits were for claims filed in a wave of tornado's that swept through Oklahoma in 1999. The case could have an effect on Gulf Coast claims from Katrina.

Anybody else think it's time to get insurance companies out of the health and homeowners insurance business? They're cherry picking in Florida. My homeowners insurance is triple what I paid on a similarly valued home in Cleveland. And I can understand that, because of the hurricane situation. But pay the damned claims. I have State Farm on both homes.

Speaking of the home in Cleveland, I had a Major water damage claim there last summer. I owned the home for 14 years, and had made only a small, $1500
wind damage claim during that period. They started jerking me around on the water damage claim (broken pipe), so I hired a Certified Public Adjuster to settle the claim for over $60,000. Then they immediately canceled me.

http://www.cnn.com/2006/US/05/26/statefarm.verdict/index.html

State Farm penalized in suit over tornado claims
Verdict could affect similar lawsuits involving Katrina

By Kathleen Johnston
CNN
Friday, May 26, 2006; Posted: 10:03 p.m. EDT (02:03 GMT)

A jury says State Farm "recklessly" and "maliciously" mishandled its clients' cases after a spate of tornadoes.

(CNN) -- State Farm acted "recklessly" and "with malice" in handling insurance claims from dozens of families whose homes were damaged when a wave of tornadoes, including the strongest in recorded history, swept through Oklahoma in 1999, a jury has decided.

The verdict, announced late Thursday, delivered millions to the lead plaintiffs and could have repercussions in the Gulf Coast states, where residents allege State Farm acted in bad faith when using engineering firms to assess damages after Hurricane Katrina destroyed thousands of homes and businesses.

The jury in the District Court of Grady County, Oklahoma, awarded Donald and Bridget Watkins almost $13 million in total damages for their part in the class action suit against the nation's largest insurer. The Watkinses are the lead plaintiffs in the case.

Jeff Marr, who represents the 70 families in the class action, said he thought the insurance company underestimated Oklahomans' willingness "to put an end to corporate arrogance."

(snip) much more.

[sarcasmo]

1. In seven years you will hear that their was another penalty against

them for Katrina claims. Kick and Nom for the pur EVIL of the Insurance company.

[merh]

14. Maybe (hopefully) sooner than 7 years

The MS AG is investigating State Farm, trying to determine if there has been criminal fraud in their "evaluations" of claims.

Additionally, US District Judge Senter denied State Farm's motion to dismiss, finding the exclusionary language in their policies that they have relied upon to deny paying claims to be ambiguous.

Judge: Insurer must pay State Farm policy 'ambiguous'

(snip)

State Farm cannot rely on "ambiguous" policy language to deny coverage for wind and rain, Senter decided.

He wrote: "To the extent State Farm contends that the hurricane itself, i.e. the hurricane winds and rain, would constitute a weather condition that would completely relieve State Farm of liability for damage to the insured property, I find that the policy is ambiguous and its weather exclusion therefore unenforceable in the context of losses attributable to wind and rain that occur during a hurricane."

Senter was referring to "anti-concurrent cause" language exclusive to State Farm policies. The clause purports to deny coverage when wind acts in any sequence with an excluded event, in this case tidal surge or water, to cause the damage.

This language in the State Farm policy was particularly ambiguous, Senter wrote, because other provisions in the same policy cover wind and rain damage and because the policy includes a "hurricane deductible."

(snip)

http://www.keepmedia.com/pubs/BiloxiSunHerald/2006/05/25/1595516?ba=a&bi=0&bp=1

[CountAllVotes]

2. why am I not surprised?

I loathe State Farm Insurance. I had to sue them when I was about 20 years old being some rich idiot ran into my car and totaled it. Did they pay? Hell no. They figured some 20 year old wouldn't be able to pursue it. Sadly State Farm Insurance was wrong. I found a lawyer and sued them alright and I got my money back!

[uppityperson]

3. I've not had trouble with State Farm since have a good local office

Main SF office sucks, but I have a decent local office that runs interference so have not had major problems. Only time I've had problems with home office I've gone to my local people and they've helped me out. Our local owner sold to another guy and we were worried, but so far there are some decent agents. Will be trouble if they all leave though.

[Boomer]

4. My local State Farm is great

I live within walking distance of my State Farm office, and they've been wonderful. They paid a claim that I was hesitant to file because of all the horror stories about being dropped after filing claims. The local agent assured me there would be no repercussions, and so far she's been right.

The other plus is that they didn't even blink at the joint car insurance policy that my partner and I needed. Although we've never formally announced that we're gay, the agents quite obviously treat us as a couple when discussing policies for car, house, life, etc. Considering that I live in a relatively conservative part of the country, that kind of treatment is really important to us.

[rocktivity]

5. Randi Rhodes says the insurance companies aren't paying Katrina victims

by claiming that they can't pay out on their flood policies because the flooding was caused by the hurricane, and they can't pay out on their hurricane policies because too much of the damage to their homes was caused by the flood!

:headbang:
rocknation

[SoCalDem]

10. It's the "Catch-22" disclaimer..

I think that every policy should be required to have a PLAIN ENGLISH DECLARARIONS PAGE where the payouts are clearly defined so there is NO question in the mind of the customer..BEFORE they have paid thousands into the policy, only to have their claim denied because of a fine print clause..

People who CHOOSE to live in coastal regions, prone to hurricanes, should have extra fees attached (like we have here for earthquakes), but if they pay for these, then coverage should include ALL damage that's there AFTER a hurricane.. Perhaps each year in May, all customers should file a video ONLINE of their property's roof, contents, conditions of trees, etc..and if that's done, there should be NO QUESTION about insurance re-imbursment.

Storm surge is PART OF A HURRICANE.and should NOT be used as a disqualifier of payment of claim.. :grr:

[Joe Bacon]

6. If corporations want to be "artificial people" treat them like it!

I'm sick of Corporations getting away with murder. If they want to be artificial people, they should be TREATED as people. When Corporations deliberately break the law, they should be arrested--seized by and run by the government for a period of time. Their shareholders should also be hurt--double taxed.

[proud2BlibKansan]

7. The only reason I stay with State Farm is our agent is great

But I am disgusted with stories like this and their refusal to pay many Katrina claims is despicable.

[lonestarnot]

8. Other companies have great agents.

[proud2BlibKansan]

9. Ours is an old family friend

His dad and my dad were good friends. I have literally known the guy all my life. My husband and I were some of his first clients. And he is good to us.

He also knows how I feel about State Farm. I called him most recently a few months ago and railed on him over this refusal to pay Katrina claims. He said I was one of several clients who had contacted him. He said this is a very real dilemna for him and he is investigating leaving State Farm.

[lonestarnot]

11. That does make it difficult to part ways. Tell him to check out AmFam

[proud2BlibKansan]

12. Will do - thanks!

[sakabatou]

13. "Like a bad neighbor, State Farm doesn't care."