Erie Insurance Says It Handled Former Judge’s Claim Correctly

January 8, 2008

  • January 8, 2008 at 4:55 am
    Big D says:
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    You know this just very seriously sucks. Did anyone see the expose on TV about a judge that was caught taking bribes? He was a slug. A disgusting slob of a human and somehow he gets in office. He was making comments about females like they were breeding animals, property, not humans with rights. They had a hidden camera on him showing him “fixing” his own judgements prior to the dispensation in the court. He took an actual cash-money bribe from an attorney….Pig. A true Pig. If judges think Insurance Companies and lawsuits are sure-win lotteries, how can we ever get the general public to think otherwise?
    It seems so hopeless that humanity is ever going to get on track…

  • January 8, 2008 at 5:21 am
    BLONDE says:
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    NOTHING NEW- SAME OLD, SAME OLD, …
    CAN THE JUDGES COMMIT FRAUD IN FRONT OF THE WHOLE WORLD AND STILL RETAIN THEIR SEAT?

  • January 9, 2008 at 8:53 am
    wudchuck says:
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    is this article about a judge whom bilked 2 insurance companies for $$$. basically fraud was committed but has to be proved in court. so it’s not a matter of what state farm or ed rust did. it not about the blog of state farm antics over the usa. this article is about FRAUD! here we have a judge whom is suppose to uphold the law. there should never be any question ( in most cases), when done be someone of this standard – but is there?! i believe, that in most cases, there should have not had to scrutinize the case. they are held to a higher standard because they know the law. they know that fraud cost money not only to the insurance company but to th consumer and the state because of the costs of a trial. again, though, a judge is no different – he needs to abide by the same law that we are. he should know better than to pad a claim. remember, this case is only an alleged case so far – it has not gone to court. at least the company did a review to make sure that the internal measures were in place and appeared to be working properly.

  • January 9, 2008 at 10:28 am
    Anonymous says:
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    industry as a whole is grossly over inflated and spend more money trying to find out how not to pay claims then actually helping people- this great county say no more and to the Judge’s that look the other way
    the forgotten subject wudchuck investigation Patriot .. We need mean dog,s on but of the CEO in this Insurance game.

  • January 9, 2008 at 10:45 am
    BLONDE says:
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    State Farm has history of not releasing records
    By Anita Lee
    McClatchy Newspapers

    In some cases, State Farm’s top leadership prefers not to share or even keep records that offer insight into how policyholder claims are handled, according to court records.

    Chairman and CEO Edward B. Rust Jr. said in sworn testimony earlier this month that no minutes are kept of quarterly meetings held by the company’s top management, the Chairman’s Council, and that policyholders have no right to information about an investigation State Farm Insurance Cos. has ordered of its relationship with Haag Engineering Co.

    State Farm spokesman Phil Supple said the company doesn’t “intend to—;try this—;case in the media.”

    “State Farm stands by testimony given by President and Vice Chairman Vince Trosino, who said when asked about these allegations, ‘It’s not part of our system. It’s not part of our core values. It’s not what made us the most successful property and casualty insurer, life insurer, in the country.'”

    Juries in two states, Texas and Oklahoma, have found Haag provided biased reports to State Farm to minimize or deny policyholder claims. Mississippi’s attorney general currently is conducting a grand jury investigation to determine whether State Farm and other insurers denied Hurricane Katrina claims through the use of fraudulent engineering reports.

    Haag denies bias, but State Farm suspended business with the company in June and ordered an independent investigation after an Oklahoma jury awarded a total of $13 million to a policyholder over tornado damages. Subsequent trials are set to determine damages for 70 other policyholders, all of whom had claims investigated by Haag.

    In past court cases, judges have chastised and even fined State Farm for withholding records the company was ordered to produce. Evidence the company destroyed documents has been presented in several cases.

    In the Oklahoma case, after State Farm finally turned over to the court a “claims legal research” DVD and other records, Judge Richard G. Van Dyck told company attorneys

    “As I was watching these tapes I just want to say this for the record, the hair on the back of my neck did — did stand up because I was seeing things there that early on in this case I was told by (State Farm) defense counsel didn’t exist and couldn’t be produced. So I’m not real happy with that and I want to remind all counsel that their ethical responsibilities as attorneys outweigh the wishes of their clients.”

    Gary T. Fye, an expert in the analysis of disputed insurance claims who lives in Nevada, often testifies in insurance cases. Fye, who said he has testified on behalf of policyholders and insurance companies, has provided the courts information on State Farm’s history of destroying and withholding records.

    In 1998, Fye wrote in a Florida case

    “I have been witnessing document destruction, concealment, and obstruction of discovery by State Farm for many years in connection with my review of internal claim practices documents of the insurer. I have accumulated certain Exhibits which show the company’s goals and objectives for document handling by its employees. The documents show close to 28 years of intentional destruction, concealment and distortion of claim practices records.”

    In some cases, company executives did not keep records.

    Jeff Marr, the attorney suing State Farm in Oklahoma, took sworn testimony Sept. 6 from Rust. Topics included Rust’s Chairman’s Council, made up of top State Farm executives. The group, which includes the company’s general counsel, meets quarterly.

    Marr was fishing for records of those meetings that he could subpoena for his lawsuit.

    “Certainly,” Marr asked Rust, “you keep records of the quarterly meetings where the entire Chairman’s Council is present?”

    “We have an agenda,” Rust said, “but minutes in that, no.”

    “Why not?” Marr asked.

    Rust replied, “Never felt a need to.”

    Marr later asked, “Are there any written agendas that are available should I choose to request them in the lawsuit?”

    “I’m not sure what might be available,” Rust said.

    Rust also said policyholders, who essentially own the private mutual company, are not entitled to know what the Chairman’s Council discusses or decides about litigation against State Farm, citing attorney-client privilege.

    Marr questioned why the company would withhold information from policyholders, who own State Farm.

    “Well, again,” said Rust (who has a law degree), “I’m not an expert in the area, but I think as you find — even if I’m a shareholder in a publicly traded company, there are things that are not — you know, I do not have access to.”

    Marr later asked if policyholders have a right to see documents from State Farm’s investigation of Haag.

    “No,” Rust said.

    “Why not?” Marr asked. “Is it privileged?”

    Rust said, “I believe so.”

    (c) 2006, The Sun Herald (Biloxi, Miss.).
    Subject Posted By Posted On
    I care Do you??

  • January 9, 2008 at 10:48 am
    standard? says:
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    In the Oklahoma case, after State Farm finally turned over to the court a “claims legal research” DVD and other records, Judge Richard G. Van Dyck told company attorneys

    “As I was watching these tapes I just want to say this for the record, the hair on the back of my neck did — did stand up because I was seeing things there that early on in this case I was told by (State Farm) defense counsel didn’t exist and couldn’t be produced. So I’m not real happy with that and I want to remind all counsel that their ethical responsibilities as attorneys outweigh the wishes of their clients

  • January 9, 2008 at 11:00 am
    Anonymous says:
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    Gary T. Fye, an expert in the analysis of disputed insurance claims who lives in Nevada, often testifies in insurance cases. Fye, who said he has testified on behalf of policyholders and insurance companies, has provided the courts information on State Farm’s history of destroying and withholding records.

    In 1998, Fye wrote in a Florida case

    “I have been witnessing document destruction, concealment, and obstruction of discovery by State Farm for many years in connection with my review of internal claim practices documents of the insurer. I have accumulated certain Exhibits which show the company’s goals and objectives for document handling by its employees. The documents show close to 28 years of intentional destruction, concealment and distortion of claim practices records.”

  • January 9, 2008 at 12:13 pm
    Dustin says:
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    Where do all these crazies come from? It seems that in every thread that has a remote amount of posts, this person posts the same things. Insurance companies are corrupt, they don’t play claims, blah blah blah. To you I say, self insure. Stay away from the “mean ole surance company.” Obviously there are companies that do shady things, but to paint the whole industry that way. Gimme a break!

  • January 9, 2008 at 12:19 pm
    Anonymous says:
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    GO AWAY! YOU BOTHER ME… YOUR OPINION IS LAUGHED HERE…I LIKE TO CONSORT WITH OTHERS LIKE MYSELF AND YOU DONT FIT THE BILL

  • January 9, 2008 at 12:21 pm
    wudchuck says:
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    it’s like that in any given industry. it only takes a few folks to throw a wrench and then they blame the whole industry. i used to be a driver trainer (OTR) truck driver. i have seen some drivers make it harder for us – for a variety of reasons. again, it only takes a few. so same with this industry as well. the major difference is that a major company got caught. most insurance play by the books and understand to protect the policy holder and the company.



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