Oklahoma Attorney General Gentner Drummond has filed a motion to intervene in a lawsuit involving a Broken Arrow family and State Farm Insurance. This action comes in response to reports alleging that State Farm may have systematically underpaid claims related to storm damage.
Background of the Lawsuit
The lawsuit was initially brought forth by a Broken Arrow family against State Farm. Drummond’s request to intervene aims to clarify whether the issues faced by this family are isolated or indicative of broader practices by State Farm across Oklahoma.
Allegations of Racketeering
Drummond’s office is investigating serious allegations against State Farm, including potential racketeering. This term suggests a coordinated effort similar to organized crime activities. Drummond specifically pointed out the need to determine if there has been a systematic approach by State Farm to deny or underpay claims.
Current Investigation Status
Before the lawsuit gained media attention, Drummond’s office had already been conducting an investigation into State Farm for three months. Reports indicate that there may be over 200 cases being tracked, but the Attorney General believes the actual number of affected individuals could reach the thousands.
Role of State Farm
In response to these allegations, State Farm issued a statement asserting that each claim is handled based on its unique circumstances. The company emphasized its commitment to ensuring policyholders receive the benefits they are entitled to.
Potential Outcomes of Intervention
- If Drummond’s motion is granted, he could uncover evidence of systemic abuses.
- A successful intervention may result in a significant settlement for affected Oklahomans.
- This could establish a resource pool for individuals who believe their claims were mishandled.
Comments from Oklahoma Insurance Commission
Although the Oklahoma Insurance Department is not a party to the lawsuit, Commissioner Glen Mulready acknowledged the Attorney General’s intervention. His department has also been investigating claims handling practices, particularly regarding roofing claims, for several years.
Mulready noted that the department has implemented unique measures, like hiring third-party engineers to evaluate the work of insurance adjusters, to ensure consumer protection. The investigation is expected to conclude in the first quarter of 2026.
Next Steps
The final decision on Drummond’s motion to intervene lies with the presiding judge. If granted, the findings could lead to significant accountability measures for State Farm regarding their claims practices in Oklahoma.
