Oklahoma Supreme Court considers attorney general’s role in State Farm case, alleging payout scheme
By Olivia Hickey
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OKLAHOMA CITY (KOCO) — The Oklahoma Supreme Court heard arguments Monday on whether Attorney General Gentner Drummond should intervene in a legal dispute between State Farm and Oklahoma homeowners over unresolved wind and hail damage claims.
“This was my house, my family. This was our most valuable asset that we invested in because we came to State Farm,” said Billy Hursh, the plaintiff in the case.
What is State Farm accused of? Drummond, who is also running for governor, said his office has received numerous complaints from Oklahomans about State Farm’s handling of claims.
“Many Oklahomans have complained in my office that something ain’t right with State Farm. They’ve got good and valid claims, good and valid in-place insurance, and yet they’re not being taken care of,” Drummond said.
Plaintiff Billy Hursh and his family are taking State Farm, their insurance carrier to court, over an allegedly unresolved roof claim case after wind and hail damage. Their petition claims it’s part of a bigger scheme to reduce payouts and full roof replacements.
“That wasn’t just done to us. It was done to thousands of people across Oklahoma and to the tune of who knows how many millions or maybe billions of dollars,” Hirsh said.
Controversy with AG Gentner Drummond handling the case Drummond, the state’s chief legal officer, said the investigation is broadening to other insurance carriers challenging Oklahomans.
“There are documents in State Farm’s possession that I want to see, and if those documents illustrate a purposeful scheme to increase the rates of Oklahomans and decrease the rates payable, then we have a problem,” Drummond said.
State Farm’s attorney argued that insurance oversight falls under the jurisdiction of the Oklahoma Insurance Commissioner, not the attorney general, raising concerns about the separation of powers.
“The Oklahoma Insurance Department does not engage in private litigation matters and will not be involved in this case. Commissioner Mulready will not have a role in these proceedings and will not comment on the pending litigation,” said Liz Heigle, chief of communications for the Oklahoma Insurance Department.
Drummond said his involvement is about protecting Oklahomans who may not have the resources to challenge large insurance companies.
“You empower the attorney general to represent the people. This is the attorney general representing all the State Farm policyholders who cannot afford or hold access to an attorney. That’s why I’m here,” Drummond said.
Drummond said that if his motion to intervene is denied, he plans to file a separate legal action. But he said he has confidence in the courts.
“Special Justice Hubert hit the nail on the head when he said, if the insurance commissioner cannot enforce these laws and the attorney general cannot enforce these laws, then we have created this chasm through which foreign corporations can come in and injure Oklahomans with reckless disregard,” Drummond said.
State Farm releases full statement on allegations State Farm responded to the allegations in a statement, rejecting claims of wrongdoing and emphasizing its commitment to ethical practices.
“State Farm helps people, follows the law, and holds itself to the highest ethical standards. We strongly reject any allegations that suggest otherwise. Experiencing property damage can be devastating, and we work with our customers throughout their claim to help them recover. Our goal is to make sure customers get every applicable benefit their policy offers. Our Homeowner’s Policy is designed to provide some of the broadest coverage offered in the insurance industry. Over the past two years, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage to their homes and property. With 300 local independent contractor agents and hundreds of their team members dedicated to serving Oklahoma, we’re committed to helping people recover,” the statement said.
The court’s decision on Drummond’s role in the case could have significant implications for how insurance disputes are handled in Oklahoma moving forward.
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