Complaint Review: State Farm Insurance Co

I'm a retired Insurance Law Instructor and Independent Insurance Claim Specialist. I do consulting and field work for General Contractors in Pennsylvania.

State Farm Insurance Company is guilty of Unfair Claims Settlement Practices, this is a violation of the Mandatory Provisions in every insurance contract in the USA. Ed Rust, CEO and his cronies are betting that most consumers don't have a clue about insurance law and their rights, and he's right.

I can't explain everything here, but here's enough information to make you dangerous to any insurance company.

There are Mandatory Provisions in every insurance contract, these are designed to protect the consumer NOT the insurance company, State Farm typically violates at least 2, but the consumer never reports them.

When you begin to suspect that you are being treated unfairly, ask for the adjuster's supervisor. Tell whoever you get on the phone that you are filing an Unfair Claims Settlement Practices case with your state's Insurance Commission. Get the person's first and Last name, it seems that everyone at State Farm only has a first name.

File a complaint with your insurance commission either on line or by mail, should you suspect that you're not being taken seriously send the complaint by Certified Mail, Return Receipt and copy your governor. The governor typically appoints the Insurance Commissioner. Usually this isn't a problem as all the insurance commissioners belong to the NAIC and share information back and forth. Individual complaints are always investigated, massive numbers of complaints cause the insurance company to be investigated and audited.

Remember that the purpose of insurance is to restore the insured to the position they held prior to the loss.

A couple of years ago Ed Rust CEO, promised shareholders that State Farm would never lose money again, Unfair Claim Settlement Practices seems to be his way of doing it.

Finally, you as the consumer are ignorant of insurance law, you are purposfully being kept in the dark hopefully this helps enlighten you.

Ignorance is the absence of knowlege, gaining that knowlege and acting upon it cures ignorance.