Oklahoma AG Intervenes in State Farm Wind-Hail Claims Litigation

Oklahoma Attorney General Gentner Drummond has intervened in Hursh v. State Farm, a significant case among approximately 200 others filed against State Farm by the Oklahoma City law firm Whitten Burrage. These cases allege a scheme by State Farm to reduce payments on wind and hail damage claims, impacting thousands of policyholders. The Attorney General's petition accuses State Farm of violating multiple state laws, including the Oklahoma Consumer Protection Act and Racketeer-Influence and Corrupt Organization Act, framing the issue as a broad consumer protection and regulatory matter rather than isolated individual disputes. State Farm reportedly implemented a goal in 2020 to reduce wind and hail claim payouts by 50%, generating substantial profits while denying claims. Whitten Burrage has represented numerous policyholders in litigation resulting in high-value settlements that were kept confidential. The Attorney General’s intervention aims to address the alleged systemic fraudulent practices and seeks penalties, damages, and structural reforms to protect Oklahoma insurance consumers. The legal basis for Drummond's involvement includes powers under the Oklahoma Consumer Protection Act and parens patriae doctrine, which allows the state to act on behalf of its residents for economic and health matters affecting the public. However, questions linger about jurisdictional overlaps and tensions between the Attorney General’s office and the Insurance Commissioner, especially after the recent Insurance Data Security Act granted significant authority to the Insurance Commissioner. This case highlights regulatory challenges in overseeing large insurers dominating the Oklahoma homeowners market, with about 30% control. The Attorney General's broader efforts to counter rising homeowners insurance premiums further underline state-level consumer protection and regulatory dynamics. Whether the intervention will lead to transparency, restitution, or broader market reforms remains under judicial review.