Oklahoma Attorney General Gentner Drummond has filed a new lawsuit against State Farm Fire and Casualty Company, alleging the insurer used deceptive practices to deny or underpay hail and wind damage claims filed by Oklahoma homeowners.
The lawsuit, filed in Cleveland County District Court, comes one day after the Oklahoma Supreme Court ruled the state’s claims against State Farm had to be pursued in a separate legal action.
According to the petition, State Farm used an internal program known as the “Hail Focus Initiative” to reduce roof replacement approvals and limit claim payments. The lawsuit alleges the company relied on undisclosed claims-handling practices and engineering reviews to reduce payouts while marketing policies that promised replacement-cost coverage.
“This case is about more than individual claim disputes,” Drummond said. “The allegations describe a corporate scheme that threatens the integrity of Oklahoma’s insurance marketplace and undermines public confidence in an industry families rely on when disaster strikes.”
The lawsuit seeks relief under the Oklahoma Consumer Protection Act and the Oklahoma Racketeer-Influenced and Corrupt Organizations Act, along with claims for civil conspiracy and unjust enrichment. The state is seeking civil penalties, restitution, disgorgement of profits and other relief.
“It is unacceptable that Oklahomans are paying rising homeowners insurance premiums yet receiving less protection in return,” Drummond said. “This new action will prevent State Farm from continuing to delay the matter with procedural posturing.”
State Farm Spokesman Tom Hartmann provided a statement to The McCarville Report responding to the Oklahoma Supreme Court’s decision and Drummond’s new lawsuit.
“We are pleased with the Oklahoma Supreme Court’s unanimous decision on this matter. The Attorney General’s lawsuit does not change the facts. State Farm remains committed to helping customers recover after storms, providing access to insurance, and working constructively with the regulator to benefit Oklahoma consumers. 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. We fairly and diligently evaluate every claim and pay what we owe under the policy based on the facts and coverage purchased. Unfortunately, the continued focus on these allegations appears driven more by political motivations than by the facts or the needs of Oklahoma consumers,” the statement read.
