Oklahoma AG Intervenes in State Farm Homeowners Insurance Case Over Claim Denials

The Oklahoma Attorney General Gentner Drummond has intervened in a homeowner insurance dispute involving State Farm, citing alleged systematic wrongful denials of hail damage claims statewide. The case originated from Bill and Lacy Hursh's claims regarding hail damage to their roof, which State Farm denied after inspections showed no damage. Drummond's intervention stems from concerns over widespread practices by State Farm that may breach the insurer’s duty of good faith under Oklahoma law, potentially violating several state statutes including the Oklahoma Consumer Protection Act and the Oklahoma Deceptive Trade Practices Act. The Hurshes' lawsuit alleges that State Farm’s tactics to limit indemnity losses under its Hail Focus Initiative result in wrongful claim denials by attributing damage to wear and tear rather than storm-related causes. Drummond has launched a formal investigation into these practices, accusing State Farm of civil conspiracy and unjust enrichment. He is seeking access to all relevant case files, including confidential materials, to support enforcement actions. Oklahoma ranks among the highest in the nation for homeowners insurance premiums, a situation Drummond attributes to insurer profiteering rather than weather risk alone. He has called on the Oklahoma Insurance Department to collaborate on addressing rising insurance costs. State Farm maintains it acted in good faith with justified claim denials. This case highlights regulatory scrutiny of insurer claim handling practices within a high-premium market and underscores the state’s efforts to enforce consumer protection laws in the homeowners insurance sector. The outcome may influence insurer behaviors and regulatory compliance standards statewide.