Farmers Insurance Group has been fined $1 million following settlement negotiations about how it handled consumer claims.
Farmers, consisting of Farmers Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Co., and Truck Insurance Exchange, agreed to the settlement to resolve a California Department of Insurance enforcement action. The action covered approximately 1,000 violations of the California Insurance Code and Fair Claims Regulations from Jan. 2, 2002, through Aug. 8, 2004. An investigation by the Claims Services Bureau of CDI found violations arising from some 350 claims handling complaints filed by consumers from 2001 to 2004.
The majority of the complaints and violations involve claims handling delays; failure to commence investigation of a claim within 15 days; failure to properly notify policyholders of the need for additional investigation time; failure to pay a claim within 30 days after liability was accepted; and failure to respond to CDI within 21 days of receipt of communication.
The settlement includes an additional $125,000 to be paid if Farmers does not adhere to terms of the agreement and improve its claims handling practices, CDI said.
Topics Claims Agribusiness
Was this article valuable?
Here are more articles you may enjoy.
Prices for New Cars Have Soared. Here’s One Big Reason Why 
Georgia Appeals Court Reverses $345M Judgment Against Insurers in School Sex Abuse 
Travelers Stranded by War Learn Insurance Won’t Cover Flight Cancellations 
Greek Oil Tanker Exits Hormuz Shipping Strait With Signal Off From This Issue
