Oklahoma Attorney General Gentner Drummond filed a motion Dec. 4 to intervene in a case against State Farm Fire and Casualty Company, alleging the company operated a coordinated program to limit roof-related insurance payouts by denying or reducing valid hail and wind claims, according to oklahoma.gov.
In an accompanying petition filed in Oklahoma County District Court, Drummond said State Farm marketed its policies as providing full replacement-cost coverage while predetermining claim outcomes to meet corporate savings targets instead of 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.
The petition alleges State Farm implemented an internal program, the “Hail Focus Initiative,” to drastically reduce roof indemnity payments in Oklahoma.
“Rather than adjust claims according to coverage language in its policies, State Farm secretly substituted restrictive, extra‑contractual standards and used those hidden standards to deny or minimize payment of legitimate covered losses,” Drummond said in the petition.
The petition accuses State Farm of violating the Oklahoma Consumer Protection Act, the Oklahoma Racketeer-Influence and Corrupt Organization Act and the Oklahoma Deceptive Trade Practices Act. It also accuses State Farm of civil conspiracy and unjust enrichment.
