https://jalopnik.com/state-farms-attempt-to-steal-a-grieving-familys-payout-1851021707
19 replies (most recent on top)
Something seems off to me.
None of it makes sense New Mexico Liability is 25/50/10 LIABILITY Pure state.
"She boosted her coverage to $1 million per accident from $25,000 per motorist and $50,000 per accident" That is NM state min Liability. Why was that updated shortly after a comprehensive claim? Did she change to a business policy because typically only $1,000,000 would be a business vehicle and that is for the other party - LIABILITY not PIP/MPC
How was at fault ?
Yes there could be other potential coverage in NM under another policy
Updating to 1M in coverage, stolen vehicle before hand seems to be a HUGE NICB fraud indicator but I don't know anything about insurance just lurking.
@5hwa…..Using LKQ parts again because body shops can’t even get OEM. Supply chain crashed after COVID. So LKQ is what’s being put on cars, even though we were paying for OEM
Was this an EC suit ? Which is handled by the corporate lawyers who do not try these cases. They hire a defense lawyer who does in the venue the sf lawyer guides them according to corporate instructions. I would bet there are alot of EC suits within the company based on how the claims operation is handling claims. Of course, the verdicts of these suits is hush hush unless it makes the news.
This doesn't add up. The jury decided the liability was 50/50. The SF insured increased her policy limits to $1,000.000.00 less than a week or so before this accident? Underwriting at SF is incredibly slow to do or approve anything having to do with a policy change. VERY slow, even when it's a very small change. There is not automation in underwriting that I've ever seen with a big change like the one that's described. One that says you have a million dollars of coverage now? I actually hope some garbage robot sent out something like that to make them realize that robots cannot replace a rational person. Robots and low wage ILR & Express, promoting the inexperienced, firing the experienced, and pay millions to execs as a reward for "managing expenses" by going after labor instead of what the real issues are.
Whatever happened to 250 milion RICO suit? Oh yeah! A business decision. These types of cases scream of company decision making process. Someday they will admit error.
If we don't appeal it would signify we had no solid defense for what happened. If we do, remember the LKQ parts judgment? $ 1 billion plus.....overturned on appeal and now we are using them again.
@4ydn exactly!
@3gmt. I’m afraid you are correct. We had a few experienced Claim Consultants left who were triaging all the risky cases. The last of them retired recently. We are now at a point where less than half of the Section Managers are technically competent. Too many brand new TMs that never learned how to evaluate. Very few CSs left that didn’t learn to evaluate with a tool. The safety net is gone. The tech stuff won’t save us from mucking up the big decisions.
Is State Farm in huge financial trouble? Asking for a friend...
There are many more of these coming. Claims used to be bullet proof because of being well versed on venue. Today they streamline venues making it vulnerable to large payouts.
Seems like a complete failure by management from bottom to top. Par for the course I guess...losers
The claim went to trial and there was a judgment entered with punitive damages. That is enough for me to say huge mistakes were made especially with the extent of the loss. Bad Faith? OUCH!
I would love to read the lawsuit to understand what the material issues that are/were at play. It's very wild that someone would go from having the state's minimum limits of $25k, and then decide to up them to $1M. That decision to change her liability/UM policy was supposed to because her car got stolen before? Comprehensive coverage for your stolen car has nothing to do with liability/uninsured coverage. Was the other car's driver at fault and uninsured/underinsured?
I can't say if it was a fair or unfair decision because the story doesn't have enough details to understand what exactly happened. It doesn't really make enough sense just reading these blurbs.
No details as to why coverage was denied. According to the people post here our policy always has coverage is grieving. I wish more people who actually worked for state farm posted here.
Morally bankrupt
fake news
State Farm is truly a terrible company with no ethics.
Keyboard/laptop warriors who have never investigated one claim and consider it all a process creates and endorses these results. From agent, to claim rep, to section manager, and claim consultant. All chronyism failures.
wow, that's disgusting