Cyrus Dugger

State Farm’s Pattern of Deceit

From the Scruggs Katrina Group Blog:

State Farm’s Pattern of Deceit

E-mails the Scruggs Katrina Group has obtained through the litigation process between State Farm and Forensic Engineering Company (one of the main engineering companies State Farm used to inspect damaged and destroyed homes on the Mississippi Gulf Coast) confirm just how far State Farm was willing to go to deny payment for hurricane damage claims — no matter what the evidence showed.

It is hard to be shocked by anything State Farm has done in responding to Katrina claims, but I have to confess that these e-mails made me shiver. See the Scruggs Katrina Group website for some of the e-mails and the media coverage they are attracting.

These e-mails reveal that State Farm, through Lecky King (the person that was in charge of all State Farm adjustments on the Mississippi Gulf Coast), pressured and coerced engineering firms to conclude that all damage was caused by water (supposedly not covered) rather than wind (which is indisputably covered). The e-mails show that State Farm expected its engineers to conclude that all the damage was caused by water and even sent a “suggested” draft report around to all its engineering firms instructing them on how to write the report in such a way to show that all the damage was caused by water. It is no wonder all the engineering reports that State Farm has used to deny coverage look exactly the same, and every report I have seen looks exactly like the draft that State Farm instructed Forensic to use. Any report that did not come back looking exactly like the State Farm draft report was bounced. The e-mails also show that State Farm instructed all of its engineering firms to IGNORE eyewitness testimony of wind damage and just conclude that the damage was caused by water: “Don’t believe your lying eyes.” (keep reading)

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Posted at 12:49 PM, May 01, 2007 in
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