Exclusive: Whistleblowers Say State Farm Cheated Katrina Victims

[Herman Munster]

http://blogs.abcnews.com/theblotter/2006/08/state_farm_insi.html

State Farm Insurance supervisors systematically demanded that Hurricane Katrina damage reports be buried or replaced or changed so that the company would not have to pay policyholders' claims in Mississippi, two State Farm insiders tell ABC News.

Kerri and Cori Rigsby, independent adjusters who had worked for State Farm exclusively for eight years, say they have turned over thousands of internal company documents and their own detailed statement to the FBI and Mississippi state investigators.

In an exclusive interview with ABC news, to be broadcast on 20/20 -- Watch 20/20 tonight at 10 --and World News, the Rigsby sisters say they saw "widespread" fraud at the State Farm offices in Biloxi and Gulfport, Miss.

"Katrina was devastating, but so was State Farm," says Cori Rigsby. At one point, they say State Farm brought in a special shredding truck they believe was used to destroy key documents. State Farm says shredding is standard to protect policyholders' privacy. The sisters say they saw supervisors go to great lengths to pressure outside engineers to prepare reports concluding that damage was caused by water, not covered under State Farm policies, rather than by wind.

[OzarkDem]

1. Good for the whistleblowers

How wonderful they stepped forward to expose State Farm's fraudulent practices. It takes a lot of guts.

[pitohui]

2. trent lott may get his claim paid yet

he is part of this lawsuit

[beyurslf]

3. Thank goodness I fired them 2 years ago and have American Family

[Phoebe Loosinhouse]

4. Judge rules policy excluded flood damage

http://news.yahoo.com/s/ap/20060815/ap_on_bi_ge/katrina_insurance

Judge rules policy excluded flood damage
By MICHAEL KUNZELMAN, Associated Press Writer
Tue Aug 15, 5:58 PM ET

GULFPORT, Miss. - A federal judge ruled Tuesday that an insurance company's policies do not cover damage from flood waters or storm surge in a decision that could affect hundreds of upcoming cases related to property damage from Hurricane Katrina.

skip

Senter said Paul and Julie Leonard of Pascagoula could be compensated for damage that they could prove was caused by high winds, however.
Nationwide and other insurers say their homeowners policies cover damage from a hurricane's wind, but not in cases where it resulted from a combination of wind and water.

"This reading of the policy would mean that an insured whose dwelling lost its roof in high winds and at the same time suffered an incursion of even an inch of water could recover nothing under his Nationwide policy," he wrote.

My translation:
No compensation for wind-driven water like storm surge, etc.
BUT, where the sleazy insurance companies had been trying to deny ANY claims if there was water damage, this judge says if there is a combination of factors, you could still be compensated for the wind damage isolated from the water damage.

My new beliefs:

We need nationalization of some industries that HAVE PROVEN they are incapable of balancing private profit from public need.
We should nationalize:

All Insurance (Especially health and homeowners) The insurers want YOU to pay, but that money is to go towards executive compensation, not paying out claims.

Utilities - the way Enron gamed the system is proof enough

Oil

Transportation

And I don't need to hear anymore crap about how privatization results in gains to the consumer thru a competitive market. There are no gains to the consumer and the market is not competitive. NEXT!

[annabanana]

5. We pretty much knew this was afoot...

because it is standard operating procedure for Insurance companies to do whatever they think they can get away with to avoid paying any claims at all..

One of the most under regulated industries in the world......

[C_U_L8R]

6. Like a good neighbor ???

maybe if you live next to a crack house.
These jerks are robbing people who put their trust in them.
State Farm has singlehandedly destroyed their own brand.
Way to go.

[Booster]

7. If there ever was a reason for a boycott, surely this is it.

Everyone who has State Farm for an insurance carrier should change carriers and cite this as their reason. Any company that exploited these poor people should pay where it hurts the most. Damn, this makes me mad.