Oklahoma Attorney General Takes Legal Action Against State Farm Over Homeowners Insurance Claims

The Oklahoma Attorney General, Gentner Drummond, has initiated a significant legal intervention against State Farm, Oklahoma's largest homeowners insurer, by invoking the state's police powers. The lawsuit alleges that beginning in 2020, State Farm implemented a strategy to reduce wind and hail claim payments by 50%, which purportedly resulted in substantial savings for the company both within Oklahoma and nationwide. This initiative has led to accusations of a fraudulent scheme, with State Farm allegedly settling 125 claims through confidential agreements to conceal the extent of the scheme. The settlements included one claim settlement amounting to $3 million, and additional policyholders continue to be represented in ongoing litigation.