Minnesota Insurance

Minnesota Commerce Commissioner Jim Bernstein farm state is responsible for fire and accident and the State and society Farm Mutual Automobile Insurance Company, with more than 13000 offences against Minnesota insurance law.

Based on a study of market behaviour, the U.S. Department of Commerce, alleging that State Farm unfair trade and injury spending practices in the use of their car glass claims in Minnesota.

The criticisms are:

In 1832 at least, the farm state to recover the funds provided by shops or glass by paying less than the “fair and reasonable market price” for automotive glass claims. Instead, the State pays a battery of “network” of prices, arbitrarily - and, typically, 55 percent of the price list. Based on a market study, indeed, at the time, the Institute to determine a fair price and reasonable in hundreds of disputed claims, State Farm. State Farm refused to pay this amount. (State Farm has concluded agreements with several hundreds of automotive glass shops, where their network, known as “offer and acceptance programme”).

State Farm told more than 100 policyholders that the company did not pay the suppliers of their choice directly, if the seller is not in the farm state in the network. Policyholders have also said they must pay the difference between the price, the supplier of their choice and the State Farm network prices. If the request is not the payment of an insurance provider chosen is a violation of law and Minnesota, in this case, also injured a moratorium and Deist firm of State issued by the department during 2001.

State Farm contract with Lynx, Inc examine, evaluate and settle claims of glass automatic if Lynx is not licensed as a vice-vis. Lynx is in possession of PPG Industries, the maker of automotive glass products. State Farm also has a considerable financial interest in the PPG? Over $ 237million investment on the farm the Land of annual returns.

Of more than 600 events, State Farm limits the ability of the insured for the selection of suppliers and glass, in fact ran a store, that the firm agreement of the State in their pricing. State Farm, through its adjustment screw Lynx, can be read in a telephone script:

I want to tell you that you chose an activity that is no firm agreement of the State nor the tariff structure guaranteed by the State farm. If they do not accept that the state farm price for your job, you will reimburse the firm of State on the basis of the bottom two competitive bids. What this means for you is that you pay at the end moreover, as deductible. ”

The use of this script, State Farm customers were misled to believe that only the law on the amount of the refund was that State Farm are willing to pay.

On hundreds of occasions State fails to comply with the various firm legal deadlines for the automatic recognition of glass asserts that the right of acceptance or rejection, the right and timely payment. For example, in 127 cases, the farm state is not disputed or Pay claims within 60 working days, depending on the needs of Minnesota law. Of more than 1800 cases, the farm state is not insured, advice on their rights to seek arbitration, as the Minnesota No-Fault law.

State Farm not the division of the order and subpoena to provide complete files of more than 2000 automotive glass claims.

“State Farm says it is a good neighbor, but it acts more like a tyrant area consumers and businesses glass,” said Bernstein. “It is the largest bloc of the Child, State Farm judge wants at all costs may be for glass and automatic, then it is difficult for policyholders to choose a business does not accept its tariff structure. I am firmly convinced that the State closes the legislature has understood the intention and decided to do something very different.