OKLAHOMA CITY – Attorney General Gentner Drummond said he appreciates the court’s decision to allow his office to intervene in a case against State Farm Fire and Casualty Company, alleging that the company operated a coordinated program to limit roof-related insurance payouts by denying or reducing valid hail and wind claims.
Judge Amy Palumbo granted Drummond’s Motion to Intervene in Oklahoma County District Court, rejecting State Farm’s attempt to block Drummond’s involvement.
“We are pleased with the court’s decision rejecting State Farm’s attempt to block our involvement in this case,” Drummond said. “This ruling is a significant win for Oklahoma consumers and affirms the state’s authority to step in when the collective interests of insurance consumers are at risk.”
Drummond filed the motion to intervene earlier this month, asserting that while State Farm marketed its policies as providing full roof replacement-cost coverage, the company predetermined claim outcomes to meet corporate savings targets rather than honoring policy promises. Drummond is asking the court to award penalties, damages, structural reforms and the recovery of profits State Farm allegedly obtained through its scheme.
Drummond said profiting from increased premiums while reducing claim fulfillment undermines public confidence in the insurance system and places Oklahoma homeowners at unacceptable risk.
The motion to intervene followed an Aug. 12 letter to Oklahoma Insurance Commissioner Glen Mulready in which Drummond asked the Insurance Department to collaborate with his office to combat rising homeowners insurance premiums in Oklahoma.
