Truth About Mold

Insurance Bad Faith

Insurance Company Bad Faith

Our Mold Stories page has many personal stories that talk about the problems with insurance companies and the bad behavior involved in the handling of mold and water damage claims.

If you are involved in litigation against an insurance company, be sure to check out our Litigation Tips.

The law says that insurance companies are required to act in "good faith," but this law is commonly ignored by some insurance companies.  This page will help you learn more about the "good faith" versus "bad faith" insurance companies.  

BREAKING NEWS!!  May 11, 2017: California Supreme Court Rebuffs Insurance Industry Assault on Proposition 103 Rate Protections.Read the article.

The California Supreme Court has rebuffed an assault by Mercury Casualty Co., State Farm, Allstate, Farmers and other insurance companies on Proposition 103, the landmark insurance reform law that has saved California consumers over $100 billion since voters passed it in 1988. The Court let stand a lower court ruling that upheld a $16 million reduction in the homeowners rates charged by Mercury.

Proposition 103 requires insurance companies to open their books and justify their rates before they go into effect. Regulations bar insurance companies from charging excessive rates and passing through unjustified expenses to policyholders. And the law allows consumers to challenge applications for excessive rates.

BREAKING NEWS!!  May 1, 2017: State Farm "wiretapper" attorney David V. Jones leaves his own law firm to join Akerman LLC law firm. Read the article.  Did Akerman conduct any due diligence before hiring him?

December 6, 2016:  Justices Uphold Katrina Fraud Verdict Against State Farm

A unanimous Supreme Court on Tuesday upheld a jury verdict that State Farm Fire and Casualty Co. committed fraud against the federal government after 2005’s Hurricane Katrina.

Their case gave rise to other claims that Illinois-based State Farm defrauded the National Flood Insurance Program. Last year, Mississippi filed its own civil fraud lawsuit against State Farm, saying the state paid as much as $522 million to State Farm policyholders after the company manipulated the reports of adjusters and engineers to limit its responsibility.

November 26, 2016:  State Farm Ordered To Refund Rate Inflations Back to California Policyholders

A court has ordered insurance company State Farm to repay California policyholders millions of dollars in a case that stems from a petition filed by the Consumer Federation of California (CFC) questioning the company’s decision to raise rates in July 2015.

As a result of the decision, 1.7 million policyholders will be refunded about $104 million.
September 19, 2016:  State Farm Policyholders Get Class-Action Status in $1 Billion RICO Lawsuit

A federal racketeering lawsuit involving State Farm and allegations of funneling money into the election of a state judge has been granted class-action status, potentially benefiting more than 4 million policyholders.

The 2012 case, if successful, could result in a more than a $7.6 billion payout from State Farm for the class

One of the best examples of bad faith practices is the case of State Farm Insurance Company versus Joe Radcliff. 

Here are the highlights:

September 16, 2014:  State Farm filed a second appeal with the Indiana Supreme Court.  The court ruled against State Farm again!!  Here's an excerpt from the court ruling:

"Simply put, the record does not reveal fraud or any unfair impediment to State Farm’s ability to fully and fairly defend against Radcliff’s claim of defamation. After all, State Farm had at its beck and call the complete panoply of pretrial discovery devices, including deposition notices and demands for document production. It was offered access to depose Richards, if it had chosen to take advantage of that opportunity. State Farm availed itself of none of these measures. Had it done so, common sense suggests that it easily could have discovered this ‘new’ evidence prior to the entry of the verdict. Based on the record before us, State Farm’s quest in uncovering this evidence was hampered by its own reluctance to undertake a detailed investigation. Because we will not grant State Farm relief from its own omissions, we affirm the trial court and conclude that it properly denied State Farm’s T.R. 60(B) Motion."

Indiana Supreme Court ruling against State Farm (September 16, 2014)

October 11, 2013:  The Indiana Supreme Court rules against State Farm.  Congratulations to Joe Radcliff!!  State Farm tried every dirty trick in the book (as usual), but Joe won!!  Read more about Joe's story at the following links.

Indiana Court of Appeals rules against State Farm (April 2013)

Here's information from the original trial:

State Farm Loses!! $14.5 Million Jury Verdict Against State Farm (July 2011)

Judge: State Farm owes man $14.5 Million (video)

State Farm filed fraudulent felony charges against the contractor.  He was cleared of all charges, and the court said "there was an indication it was an adjustor working for State Farm who actually caused the damage."

Illegal activities by bad faith insurance companies:

Allstate and State Farm Hit With Racketeering Charges (2008)

State Farm Found Guilty of Fraudulent Claims Conduct in Rigsby Qui Tam Case (2013)

Expose' on State Farm hired gun attorney David Jones of the Jones Kurth law firm (2010)

RICO (racketeering) lawsuit against several parties including David Jones' law firm (Jones, Kurth & Andrews in San Antonio, Texas)  Contact us for a copy.

Federal Jury Finds State Farm Guilty of Fraud Against the Federal Government (2013)

State Farm Ordered to Pay Fees and Damages in Katrina Whistleblower Case (2014)

Jury Finds Farmers Insurance Guilty of Fraud (2011)

State Farm Faces Criminal Investigation Over Hurricane Claims (2012)

Congressman Gene Taylor's Report to Congress about Insurance Company Fraud after Hurricane Katrina (2007)

Insurance Execs (at Hartford Insurance Co.) Admit Taking Bribes from Houston Lawyer

Insurers Colluded--to deny hurricane claims (2007)

Prostitution, Drugs, Payola, and More in the Insurance Industry (2007)

Channel 7 & KGO Investigation Into How State Farm Does Business (Parts 1 & 2) Windows Media Video.  Tuesday, November 07, 2006.  Investigation into the way State Farm does business: State Farm cheats policyholders by forging signatures to deny coverage and orders employees to lie under oath in bad faith litigation. (17 min.)  Contact us for a copy of the video.

Channel 7 & KGO Investigation Into How State Farm Does Business (Part 3) Windows Media Video.  Monday, November 06, 2006.  Investigation into the way State Farm does business: Employees instructed to destroy documents that could be used against them and the use of "mad dog" litigation tactics in bad faith lawsuits. (5 min.)  Contact us for a copy of the video.

Insurance Company Surveillance Tactics:

Insurance Company Ordered to Pay Damages for Illicit Surveillance and Flaunting the Court's Rulings (2008)

Canada Reviews Insurance Company Surveillance Tactics

Video Surveillance Trips Up Insurer--Pennsylvania Court Ruling (2007)

Insurance Company Influence in the Legislative and Judicial System:

Justice for Sale--in the Wall Street Journal (2008)

Buy Your Own Judge (2010)

Change Way Judicial Races are Financed (2009)

Donations vs Impartiality on Docket (2009)

In Justice Shift, Corporate Deals Replace Trials (2008)

Insurers Contributed $35.7 Million to Members of Congress since 2005

State Supreme Court Justice at Center of State Farm Lawsuit (2011)

State Farm Customers Want Illinois Supreme Court to Restore Verdict in Fraud Suit (2011)
Truth About Mold - Insurance Bad Faith
Truth About Mold - Insurance Bad Faith
There is an extensive amount of information on the Internet regarding insurance company bad faith and corruption, including the following:

News articles and court documents about bad faith insurance companies:

July 16, 2015:  State Farm at Risk of Massive Class Action Lawsuit for Fraud

A recent court decision favoring whistleblowers who sued State Farm Fire and Casualty Co. for fraud in the aftermath of Hurricane Katrina has opened the door for a potential class-action lawsuit against the insurer, attorneys involved with the case say.

Monday’s decision allows the Rigsbys and the government to seek more evidence of widespread fraud against the National Flood Insurance Program.
July 14, 2015:  Whistleblowers Win Appeal of State Farm Wind vs. Water Case
"A panel of the U.S. Fifth Circuit Court of Appeals has affirmed a jury's finding in a whistleblower lawsuit that State Farm Fire & Casualty Co. committed fraud against the federal government and submitted a false report to support fraud after Hurricane Katrina.  Further, the panel has ordered the case sent back to U.S. District Court in Gulfport for investigation of other State Farm Katrina claims by the whistleblowers, sisters Cori and Kerri Rigsby, and their legal team."

"The ruling opens the possibility for a trial to determine whether State Farm's fraud was more widespread, as the Rigsbys claim. The panel found the Rigsby's allegations, coupled with the jury's verdict, justify further investigation."

The appellate panel concluded: "In this case, there was evidence that (State Farm) adjusters were effectively told to presume flood damage instead of wind damage. There was also evidence that State Farm knowingly violated (the law), concealed evidence of wind damage, and strong-armed an engineering firm to change its reports."
April 22, 2015:  Mississippi Files Katrina-Related Lawsuit Against State Farm
February 27, 2015:  State Farm to Pay $352.5 Million to Settle Case of Overcharging Texas Insurance Customers
February 27, 2015:  Judge Ordered to Give Testimony in Lawsuit Against State Farm

Storm of Money: Insider Tells How Some Insurance Companies Rig the System (2014)

Ex-State Farm Agent Changes Plea in Kansas Fraud Case (2014)

State Farm Could Owe Texans $0 to $1 Billion (2009)

Insurance Companies Forced to Pay Denied Claims (2014)

State Farm Rate Debate Hinges on $1 Billion Question (2009)

Schumer Lambasts Insurance Industry (relating to Superstorm Sandy)--November 15, 2012

Do As I Say, Not As I Sue: Exposing the Lawsuit-Happy Hypocrites of the U.S. Chamber's Institute for Legal Reform (includes State Farm)--October 2011

Read the article:  U.S. Chamber Hypocrisy on Lawsuit Abuse (2011)

The Insurance Hoax--in Bloomberg News (2007)

Is the State Farm Policy Really Worth Anything? (2009)

Tricks of the Trade--How Insurance Companies Deny, Delay, Confuse and Refuse

The Ten Worst Insurance Companies in America

10 Worst Insurance Companies in America for Homeowner Coverage (2008)

Count Up to the Ten Worst Insurance Companies and the Games They Love to Play (2013)

Is There a Chink in the Stonewall? How to Sue the Insurance Company that is Blocking Settlement

Allstate Insurance Company Claims Manual

Case Against State Farm Proves Agents Receive Same Mistreatment as Regular Folks

State Farm's Arrogance Prompts Legislative Outcry (2010)

Denise Bryan vs State Farm--Maryland case (2009)

Allstate, State Farm, Other Bad Faith Insurance Companies Rack Up Record Profits by Cheating Customers (2007)

Study Finds Institutional Bad Faith at Allstate, State Farm and Other Major Insurers (2008)

Are You in Good Hands? (2008)

Do State Farm Customers Really Hate State Farm as Much as State Farm's Attorneys Publicly Argue They Do? (The answer is Yes.)  (2009)

Coastal Insurance Crisis--State Farm cooking the books (2009)

Lana Hoffmann-Toltzman family (Minnesota)

Insurance Company Tactics Add to Americans' Financial Hardships (2008)

State Farm Stiff Arms Regulators (2010)

"State Farm is the poster child for what's wrong with the system," said Alex Winslow of Texas Watch.

The Claims Game:  When Insurers Just Won't Pay (2001)

NAIC Cites Top Insurance Complaints (2008)

State Farm's Corporate Irresponsibility (2009)

Coach Barry Switzer vs State Farm (2005)

Washington Appeals Court Says Allstate Must Reveal Claims Documents (2009)

Gitty Up! The Research that Fooled America (2009)

First Enron, Now State Farm (2002)

Insurers Maintain Record Profits by Overpricing Policies and Underpaying Claims (2007)

Court Rulings and other documents in State Farm cases:

Campbell vs State Farm (Utah Supreme Court ruling)--State Farm dragged the Campbell family through the legal system for 23 years

Victims of Insurer's Bad Faith to Get Big Award (2012)

Washington Supreme Court: Insurers Communications with Coverage Counsel Now Presumptively Discoverable (2013)

Oklahome Court issues Order for sanctions and discipline against State Farm and attorney David Jones (of the Jones Kurth law firm in San Antonio, Texas)--Order Sustaining Motion for Contempt and Sanctions

Oklahoma Couple Awarded $13 Million in Lawsuit Against State Farm (2006)

State Farm former employee--declaration of Amy Girod Zuniga (gives details of State Farm's bad faith behavior) (1996)

Deposition of State Farm Claims Vice President Susan Hood (2006)

Judge Finds Insurer Guilty of Bad Faith (2014)

Numerous documents and evidence regarding State Farm practices and procedures

Letter from Humphreys Law Firm to State Farm attorney David Jones about bad conduct during litigation

Jules Deutsch, et al vs. State Farm (David Jones is one of the defense attorneys representing State Farm)

Insurer (State Farm) Fails to Dismiss Bad Faith Count on Summary Judgment (2008)

Plaintiffs' Evidence of Out-of-State Conduct (against State Farm)--McIntosh vs State Farm Court Ruling (2008)

Discovery of Reserves and Other Policyholders’ Claims files (2007)

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