Attorney General Gentner Drummond has filed a motion to intervene in an ongoing lawsuit against State Farm Fire and Casualty Company, alleging the insurer ran a coordinated program to limit roof-related insurance payouts by denying or reducing valid hail and wind claims.
In documents submitted to the Oklahoma County District Court, Drummond contends that State Farm marketed its policies as providing full replacement-cost coverage but allegedly predetermined claim outcomes to meet corporate savings goals rather than fulfill policy promises. The Attorney General is seeking penalties, damages, structural reforms, and recovery of profits State Farm is accused of obtaining through these practices.
“Oklahomans are paying rising homeowners insurance premiums yet receiving less protection in return, as State Farm simultaneously pursues additional rate increases while allegedly escalating its claim denials and underpayment practices,” Drummond said in the motion. “Oklahomans can weather inflation and Oklahoma storms, but they cannot withstand a system in which they are charged more while effectively insured less. Inflation and weather do not explain, let alone justify, the widening gap between what Oklahomans pay and what they receive.”
Drummond stated that increasing profits from higher premiums while decreasing claim fulfillment undermines public confidence in the insurance industry and puts Oklahoma homeowners at risk.
“Protecting consumers from unfair and deceptive insurance practices is a core sovereign responsibility, and intervention is necessary to ensure that insurers operating in this State do not engage in unlawful conduct that leaves Oklahomans paying more for coverage they do not truly receive,” he said.
The petition alleges that State Farm implemented an internal program called the “Hail Focus Initiative” to significantly reduce roof indemnity payments across Oklahoma.
“Rather than adjust claims according to coverage language in its policies, State Farm secretly substituted restrictive, extra‑contractual standards and used those hidden standards to deny or minimize payment of legitimate covered losses,” Drummond said in the petition.
State Farm faces accusations of violating several state laws: the Oklahoma Consumer Protection Act, the Oklahoma Racketeer-Influence and Corrupt Organization Act, and the Oklahoma Deceptive Trade Practices Act. The company is also accused of civil conspiracy and unjust enrichment.
This legal action comes after Drummond sent a letter on August 12 to Insurance Commissioner Glen Mulready requesting cooperation with his office to address rising homeowners insurance premiums within Oklahoma.
