State Farm calls ABC's 20/20 report that it cheated Katrina victims 'grossly unfair'

RAW STORY
Published: Saturday August 26, 2006

Early Saturday morning, mutual insurance company State Farm issued a press release which called an ABC 20/20 report that it cheated Katrina victims "grossly unfair," RAW STORY has learned.

"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," Brian Ross and Joseph Rhee reported on Friday at ABC's blog The Blotter.

"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," ABC reported.

Friday night's edition of 20/20 included an interview with the Rigsby sisters.

In its press release, State Farm said that it "is outraged" by ABC's "misleading story."

"How the program characterized State Farm's claims handling is grossly unfair," Vice President Susan Q. Hood said in the press release, which also noted that the insurance company "handled more than 295,000 property claims and paid (not including payments made under the National Flood Insurance Program) more than $3.1 billion as a result of Katrina."

"This evening's report inaccurately portrays State Farm's claims handling policies and our commitment to our policyholders," Hood said. "Our claims associates are committed to operating at the highest level of business and ethical standards. State Farm is committed to paying what we owe, promptly, courteously, and efficiently."

State Farm didn't deny that documents may have been shredded, but that any action would have been only to protect the privacy of shareholders.

"Like all other large companies and government entities, State Farm has a records management program, which among other things protects the privacy of its customers and appropriately maintains records for regulatory and tax purposes," said the press release.

State Farm added that the company was cooperating with various authorities investigating the allegations.

"State Farm has been working for months with, and providing documents to, the Mississippi Attorney General's office and the U.S. Attorney's office and continues to cooperate with Mississippi and federal officials as they investigate these and other allegations," said the press release.