State Farm has ordered an independent investigation into one of its vendors and suspended work with Haag Engineering Co. based on an Oklahoma jury’s finding that the insurance company used Haag reports to maliciously deny policyholder claims.
State Farm’s top executives did not publicly announce the “moratorium” on work with Haag or the investigation, but they recently were forced under court order in Oklahoma to submit to questioning about the company’s claims practices, The Associated Press reported.
The practices are now being scrutinized in Mississippi as a result of suits brought over Hurricane Katrina claims.
In the Oklahoma case in May, a jury awarded Donald and Bridget Watkins $13 million and found State Farm “recklessly disregarded its duty to deal fairly and act in good faith” with the them.
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