Farmers Sues Radiological Corporations for $3 Million

December 19, 2013

Los Angeles-based Farmers Insurance Exchange filed a lawsuit in the Superior Court of California against two radiological corporations and their owners for allegedly submitting false documentation to get paid for services they didn’t provide.

The civil complaint seeks restitution for unfair business practices, insurance fraud and seeks a cease and desist order to prevent the companies from engaging in alleged improper billing practices.

The lawsuit alleges that the corporations and their owners billed Farmers for 3D Rendering of MRI and CT scans that were never performed in more than 200 bodily injury and workers’ compensation claims under Farmers-2013.New-Logo1-300x162 (2)policies issued to Farmers policyholders.

The complaint also alleges that one of the corporations was improperly owned and structured, because a lay person was the majority owner, and not a licensed physician. That would be a violation of state law.

The Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange), including their subsidiaries and affiliates, owned by their policyholders. Farmers Group, Inc. is wholly owned by the Zurich Insurance Group.

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Latest Comments

  • December 23, 2013 at 8:44 pm
    Mike says:
    Who are the two Radiological corporations? If you are going to have a headline, at least give us the news instead of just an advertisement for Farmers.
  • December 20, 2013 at 1:57 pm
    Joseph Pettit says:
    With billions of dollars being siphoned from Medicare,illegally, I applaud the actions of the Farmers Insurance Group in exposing these cheaters. Not only should the stolen fu... read more
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