Miss. Attorney General Sues State Farm for Breach of Contract

June 12, 2007

  • June 18, 2007 at 12:21 pm
    Where Lies come out. says:
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    State Farm wake up !!! We all known your LIES>>>>> Get your hand,s out of the GOV.

  • June 18, 2007 at 1:29 am
    Jewel says:
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    Theifs
    I have lived through over a dozen hurricanes and the two companies that consistantly rip people off from storm damage are state farm and all state.

    I have seen a house that was racked ( canted diagonally) and the adjuster came out and told him that there was nothing wrong with the house and denied his claim, the house was condemmed by the way.

    I wouldnt give either of those companies a friggin wooden penny.

  • June 18, 2007 at 1:35 am
    gode says:
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    Insurance companies want your money.
    They dont want to give you money.
    They can and will do whatever they can screw you. Good Old State Farm.

  • June 18, 2007 at 1:39 am
    Anonymous says:
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    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.”

    The Sun Herald (Biloxi, Miss.).

    .

  • June 18, 2007 at 3:55 am
    Anonymous says:
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    Insurance companies are required to handle your claim with good faith and fair dealing. Most states, including Louisiana, Mississippi and Alabama, have laws governing how insurers deal with claimants. Louisiana requires insurers to make a written offer to settle a property damage claim within 30 days after receipt of a “satisfactory proof of loss” for the claim. If the insurance company fails to do this and it has no reason for failing to do so, the company may owe penalties of up to 25% on the amount due.



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