OKLAHOMA CITY, Okla. — State Farm has agreed to a more than $45 million dollar settlement with the Oklahoma Insurance Department, which says State Farm improperly denied roof damage claims.
The State says the settlement includes a minimum of $35 million that will be set aside to help consumers who may have been wrongfully denied payment.
They say that policyholders who had a wind or hail damage claim that denied or unpaid from the January 1, 2021 to December 31, 2025, will now have a chance to get their claim reviewed again, this time by an independent third party.
State Farm will be required to send out notices, approved by the Oklahoma Insurance Department, to affected policyholders to explain how they can opt in to the process.
The settlement also includes $10 million for Oklahoma’s Strengthen Oklahoma Homes grant program, and an additional $2.86 million in fines and examination expenses payable to the Department.
Even though State Farm agreed to the settlement, the company issued a statement saying that it “disagrees with findings and characterizations in the Oklahoma Insurance Department’s market conduct examination report. We evaluate each claim based on the facts of the loss and the customer’s policy. Over the past five years, State Farm has responded to more than 100,000 claims in Oklahoma. A limited review of individual claims should not be mistaken for a complete picture of our overall claims-handling practices.“
