Insurance Commissioner Group’s 2008 Budget Anticipates Revenue Growth

October 2, 2007

  • October 3, 2007 at 8:07 am
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    handling by its employees. The documents show close to 28 years of
    intentional destruction, concealment and distortion of claim practices
    records.”

    In some cases, company executives did not keep records.

    Jeff Marr, the attorney suing State Farm in Oklahoma, took sworn testimony
    Sept. 6 from Rust. Topics included Rust’s Chairman’s Council, made up of top
    State Farm executives. The group, which includes the company’s general
    counsel, meets quarterly.

    Marr was fishing for records of those meetings that he could subpoena for
    his lawsuit.

    “Certainly,” Marr asked Rust, “you keep records of the quarterly meetings
    where the entire Chairman’s Council is present?”

    “We have an agenda,” Rust said, “but minutes in that, no.”

    “Why not?” Marr asked.

    Rust replied, “Never felt a need to.”

    Marr later asked, “Are there any written agendas that are available should I
    choose to request them in the lawsuit?”

    “I’m not sure what might be available,” Rust said.

    Rust also said policyholders, who essentially own the private mutual
    company, are not entitled to know what the Chairman’s Council discusses or
    decides about litigation against State Farm, citing attorney-client
    privilege.

    Marr questioned why the company would withhold information from
    policyholders, who own State Farm.

    “Well, again,” said Rust (who has a law degree), “I’m not an expert in the
    area, but I think as you find — even if I’m a shareholder in a publicly
    traded company, there are things that are not — you know, I do not have
    access to.”

    Marr later asked if policyholders have a right to see documents from State
    Farm’s investigation of Haag.

    “No,” Rust said.

    “Why not?” Marr asked. “Is it privileged?”

    Rust said, “I believe



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