“The department’s examination seeks zip-code level nationwide data about State Farm’s homeowners policies, including the total premiums collected by State Farm, the types of policy coverage and insurance limits, and the number of claims against those policies,” Raoul’s office said.
Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm, the largest property and automotive insurance company in the state, and is now demanding that it turn over sensitive data to the Illinois Department of Insurance.
According to CBS News, in a press release, Raoul said that State Farm failed to comply with a regulatory examination of its nationwide business practices as part of an investigation that was launched in November of last year.
In his lawsuit, Raoul accuses State Farm of increasing the average cost of its premiums by a significant rate.
“State Farm’s obstruction does not just violate the law. It prevents the Department of Insurance from obtaining information to help make sure all Illinois homeowners are being treated fairly,” Raoul said in a statement. “State insurance departments are the primary regulators of insurance companies, so it is crucially important that State Farm, headquartered in Illinois, cooperate with the department’s oversight of its business practices.”
The Attorney General’s Office notes that State Farm is headquartered in Bloomington, Illinois, which gives the state Department of Insurance “primary oversight nationwide.”
“The department’s examination seeks zip-code level nationwide data about State Farm’s homeowners policies, including the total premiums collected by State Farm, the types of policy coverage and insurance limits, and the number of claims against those policies,” Raoul’s office said.
State Farm has denied any and all wrongdoing, telling CBS News that “it did not violate the law” and that the lawsuit is “without merit.”
“State Farm did not violate the law,” State Farm said. “This lawsuit is without merit and has nothing to do with Illinois customers or the cost of their insurance.”
“State Farm has called Illinois home for more than a century, and our focus remains solely on helping our customers. More than 21,000 State Farm agents, agent team members, and State Farm employees proudly serve millions of customers in Illinois,” the company said in its statement. “State Farm remains committed to collaborating with the Illinois Department of Insurance to benefit Illinois customers. We value our partnerships with state leaders and continue to work together toward finding solutions that allow us to best serve customers and promote a healthy and competitive insurance market.”
Raoul, though, says that the state repeatedly requested zip-code related information about State Farm policies but, “[i]n violation of the Illinois Insurance Code, State Farm has refused to provide the data. Attorney General Raoul, on behalf of the department’s director, is asking the court to order State Farm to comply with the examination and provide important information for assessing the challenges that plague the homeowners insurance market for Illinoisians and all Americans.”
Sources
Illinois Attorney General Kwame Raoul suing State Farm over homeowners insurance data
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