Attorney General Gentner Drummond has been granted the right to intervene in a lawsuit against State Farm Fire and Casualty Company. The case alleges that State Farm ran a coordinated program, known as the “Hail Focus Initiative,” to reduce or deny valid insurance claims related to roof damage from hail and wind.
Oklahoma County District Court Judge Amy Palumbo approved Drummond’s Motion to Intervene on Tuesday, overruling State Farm’s effort to prevent his involvement.
“We are pleased with the court’s decision rejecting State Farm’s attempt to block our involvement in this case,” Drummond said. “This ruling is a significant win for Oklahoma consumers and affirms the state’s authority to step in when the collective interests of insurance consumers are at risk.”
Earlier this month, Drummond filed his motion, claiming that State Farm marketed its policies as offering full roof replacement-cost coverage but allegedly predetermined claim outcomes based on corporate savings goals instead of honoring policy commitments. He is asking the court for penalties, damages, structural reforms, and recovery of profits that State Farm may have gained through these practices.
Drummond also stated that increasing premiums while reducing claims undermines trust in the insurance system and puts Oklahoma homeowners at risk.
The Attorney General’s move comes after he sent a letter on August 12 to Oklahoma Insurance Commissioner Glen Mulready requesting cooperation between their offices to address rising homeowners insurance premiums in Oklahoma.
