Indianapolis, IN, May 20, 2009: In an Agreement adopted today by Indiana Department of Insurance (IDOI) Commissioner Jim Atterholt, State Farm agrees to reevaluate 7,000 closed-without-payment policyholder claims and to work with IDOI examiners on an additional 29,000 claims related to the hail storm of 2006. In addition, State Farm will pay $275,000 to the IDOI which will then be deposited into the State of Indiana’s General Fund. As a result of IDOI’s examination process, State Farm has already revisited and paid policyholders an additional $1,799,544.
On April 14, 2006 a hail storm hit the greater Indianapolis area. That hail storm proved to be the largest disaster in the country for that year. After receiving over 200 complaints from State Farm policyholders, the IDOI launched an examination of the company’s claims handling processes on March 6, 2007. To date, 425 State Farm policyholders have lodged a complaint with the Department.
The Agreement adopted by the Commissioner today includes the following: the continued review of the 35,000 total policyholder claim files, the monetary payment to the General Fund, a monitored remediation, a review of policies and procedures, as well as a toll free number for policyholder contact (Copy of Final Order and Agreement and attached for your reference).
“Those consumers insured by State Farm who have additional concerns should call 1-866-873-6952, a special toll free number made available as a result of the settlement. IDOI examiners will be monitoring how these calls are handled by State Farm. A settlement at this time brings to a close a long investigation process and allows for the best possible relief for consumers,” stated Commissioner Atterholt.
Chief Deputy Commissioner and Counsel of the Consumer Protection Unit of the Department of Insurance, Carol Mihalik stated that, “This agreement resolves our specific areas of concern as to claims handling. This included the use of independent adjusters, consistency of use of engineering reviews, the application of the appraisal provision within the insurance policies, and the need for multiple estimates and re-inspections prior to a final payment. Our examiners will be reviewing all of State Farm’s remedial efforts and reporting back to the IDOI in December of 2009.”
Source: Indiana Department of Insurance
