Saturday, September 23, 2006

Insurance Company + Disastor + Haag Engineering="Malicious Denials of Claims"

I've written quite a bit over the past year about how Allstate is denying the structural damage part of our claim based on a report from Haag Engineering.

A jury in Oklahoma ruled that State Farm, the nation's largest insurer, used Haag reports to "maliciously deny policyholder claims." Now State Farm is forced under court order to submit to questioning about how they handle claims practices with Haag. Chairman and CEO Edward Rust admitted that State Farm would not have used Haag to assess Hurricane Damage if they had to do it all over again. State Farm also has a moratorium on using Haag Engineering. "Based upon what I know now," Rust said, "I'm supportive of the moratorium and the review. And we, you know, did not have that knowledge prior to this."

Marr, the attorney representing the people in Oklahoma who had their homes destroyed and their claims denied, asked Rust: "Do you find it coincidental the Watkins verdict and the jury's findings regarding State Farm's use of biased engineers and the allegations being levied against State Farm in Mississippi are for the same thing?"

Rust: "I find it troublesome."

Marr: "Do you believe it is representative of a pattern?"

Rust: "No, I don't, but I do find it troublesome. If there is an issue with Haag Engineering, we need to get to the bottom of it."

Rust said he was unaware of any problems with Haag before the Oklahoma verdict. But when pressed, he admitted problems in Texas, Idaho, and several other places.

More of the testimony reveals that State Farm paid Haag much more than normal for engineer's reports. And more evidence is turning up that State Farm purposefully withholds and destroys documents. The house of cards is crumbling.


Anonymous said...

Doesn't malice indicate "lack of good faith", which entitles you to treble damages?

Anna said...

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