State farm insurance colorado
The State Farm Insurance set up in 1922 by George Mecherle, is one of the largest insurance agency in the country with its unprecedented presence in Colorado also. A Fortune 500 company with 17,000 agents and 68,000 employees all over the country caters to around 76 million automobile, fires, life and other varied policies to suit to the particular requirements of the customers. In July 16th, 2003, the company has cut the premium percentage to 7.2% of the policy and also has shifted the auto insurance system from No fault to tort on July 1, 2003. This, as estimated by the company, has resulted in a 3.8 million savings to its customers. The company also boasts of nationwide lowest insurance premium strategies (customising to the insurers needs) in comparison to the other insurance companies.
Many rating agencies like A.M. Bests, Fitch ratings, Moodys, Standard and Poors and Weiss have according best ratings to the company.
The Black magazine has praised it as the best company for adversity.
The company itself has assured that it has already responded to 12.5 claims in U.S.
The state farm insurance has its office in Colorado in Denver at 1100 Acoma Street. It boasts of covering at least 20% market presence in that state and also has a wide range of insurance policies as it offers in the other states.
But, of late there have been a lot of discrepancies happening in relation to the insurance company in the state of Colorado and the insurance company is trying its level best to bury the truth by taking advantage of its large presence in the country. The company is of more than 80 years old and has the influence to buy the government and the courts so that bad faith claims reported against the company may be subdued without much talk in the public. However, as truth can never be hidden for a longer time, there are reports of incidences wherein the State farm insurance in Colorado has behaved callously towards its clients just to avoid repayment of the claims which it was supposed to repay legally.
On a country wide basis, there are some 7,19,000 bad faith cases reported against the insurance giant and in Colorado, the recent cases of bad faith have been discussed below:
The first case is about Salazar vs. The State Farm Automobile Insurance company in Colorado. In 1999, Salazar suffered an automobile accident when Edward Ren was driving. She first of all, sued Ren for damages. But as her personal medication charges exceeded Rens insurance policy of $25,000, she had to claim for the underinsured motorist insurance through her insurer the State Farm. However, State Farm denied to repay anything to Salazar as the company felt that she was already compensated adequately by Rens insurance. It only offered an amount of $100 as a compensation to Salazar in return of withdrawal of the claim. Salazar proceeded further with the claim and demanded that she needs to be repaid the policy amount of $50,000 as a compensation for medical costs, interest, court fees etc.Following the trial, the jury returned a verdict in favour of Salazar in the amount of $402,971 in damages for physical impairment, lost income, future loss of income, medical expenses, and noneconomic losses. The State Farm then reducing the jurys verdict to the UIM policy limit of Salazar of $50,000 and agreed to repay $25,000 after taking into account the earlier $25,000 which was earlier compensated by Ren.
In a way, the State Farm has avoided the other $25,000 which was repaid by Rens policy though, the verdict has estimated the loss to the extent of $402,791. Salazar, already suffering from the injuries and mental trauma could not pursue further against the insurer for the chisel they have put on her righteous claims.
The Second case is about Clinton and Laura Shaffer vs. State Farm automobile insurance company. The verdict which was pronounced on January 31st, 2005, is described as a monumental impact in favour of consumers against the insurance agency. On account of an automobile accident Laura Shaffer suffered Lumbar Spine disc herniation which was of permanent in nature and claimed their insurer the State Farm to repay for the medical costs. The State Farm agreed to compensate only $6,500 for them which was unacceptable by the couple and so they proceeded to the Colorado court with the help of the noted attorney William Muhr who argued that higher compensation needs to be granted to the couple according to the Underinsured Motorists Policy. Accordingly, the court has conducted medical tests to Laura Shaffer and affirmed that the consumer need to be compensated to the extent of $950,000 for medical, interest and non-economical costs.
The above are the examples of successful consumers cases wherein the State Farm was forced to compensate the appellants according to the courts verdict. These are successful because they have seen the light of the media and have become noted to everyone. There are many more cases lying in this way in Colorado courts only. All these bad faith claims are a result of the State Farms deliberate practise of
Underpaying the claims
Chiselling the claims
Dragging the appeals in the courts through merit less objections and false privileges etc.
Further, there are people who complain that even punitive judgements against the State Farm do not make any difference to the company. The company is said to be beyond the reach of judge and jury.
It is very disheartening to note that the dream which Mecherle has seen of providing cheaper insurance to one and all has been disfigured for achieving worthless aims of high profitability and market monopoly. Its high time that the company realises that it has to mend its ways, failing which; its competitiveness would be hurt as the consumers are no longer willing to support fraudulent companies in the future.
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