Farmers Insurance Enters Huge Settlement Agreement Over Unpaid Claims
Farmers Insurance has entered into a settlement agreement with the state of Oklahoma over earthquake claims that went unpaid.
Oklahoma Attorney General Mike Hunter and Insurance Commissioner Glen Mulready announced that they have reached a $25 million settlement with the insurer.
As part of the settlement, Farmers will reopen the claims process and re-evaluate each claim with the help of an independent administrator.
The insurer will also make additional payments for the earthquake claims as needed if property damages exceed the agreed upon amount.
According to state officials, only 19% of earthquake insurance claims from 2010 through May of 2016 were paid.