Farm Bureau Insurance Faces Federal Fraud Reporting Lawsuit Including New Mexico

A federal lawsuit was filed against Farm Bureau Insurance Company and its affiliates, alleging deliberate concealment of evidence and obstruction of legally mandated fraud reporting across multiple states, including New Mexico. The lawsuit originates from a 2023 fire investigation in Nebraska where a Farm Bureau claims adjuster reportedly entered a non-insured premises without consent. Farm Bureau executives allegedly directed employees to create a hidden 'shell' claim file with another customer's identification to hide this unauthorized entry. This practice is alleged to be part of a broader company pattern suppressing fraud-related information from state regulators, with plaintiffs claiming they were terminated after raising concerns. New Mexico's insurance laws regarding fraud reporting are cited, suggesting potential widespread regulatory non-compliance by Farm Bureau in that state as well. The New Mexico Office of Superintendent of Insurance is reviewing the complaint and may pursue investigative or enforcement actions depending on findings. The case is pending in federal court in Iowa, with Farm Bureau yet to respond publicly to these allegations. The outcome may have significant implications for claims handling and regulatory compliance standards within the insurance industry, especially in fraud detection and reporting protocols.