Where is The Department of Insurance?

May 1, 2007

How can this be? Where is the government regulators in all this? When such a huge tragedy takes place, shouldn’t there be a sort of an oversight body looking over the shoulder of corporations whose interest is squarely opposite to the interest of the victims?

State Farm’s Pattern of Deceit — Scruggs Katrina Group Blog

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.

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