Friday, May 22, 2009

State Farm called Katrina a ‘water storm’ - Featured Story - SunHerald.com

State Farm Insurance sued Katrina
Rigsby and her sister, former adjuster Cori Rigsby, have accused State Farm of conspiring with two vendors to minimize what the company owed for wind damage by overcharging the federal government for water damage.

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She said State Farm told adjusters to “hit policy limits” on flood claims and tell policyholders an engineer would be sent out to determine whether State Farm owed money for wind damage.

Kerri Rigsby repeated previous allegations that State Farm claims manager Alexis “Lecky” King ordered reports changed if they failed to conclude that water was the cause of a policyholder’s damage. When too many reports reflected wind damage, Rigsby said, State Farm cancelled further reports en masse, even those for property that had already been inspected.

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