Oklahoma Accuses State Farm of ‘Corporate Scheme’ To Deny Claims for Tornado Damage

Oklahoma Attorney General Gentner Drummond accused State Farm of orchestrating a "corporate scheme" to unfairly deny homeowner claims for wind and hail damage on Wednesday. Drummond filed a lawsuit in Cleveland County District Court, alleging that State Farm implemented an internal program designed to reduce and minimize claim payments to its Oklahoma customers. The lawsuit claims this scheme threatens the integrity of Oklahoma's insurance marketplace and erodes public confidence in the industry. State Farm has denied the allegations, stating in a response to Realtor.com® that Drummond's claims are "politically motivated" and that the company has paid $1 billion to Oklahoma customers for wind and hail damage. The insurer asserted its commitment to helping customers recover after storms and working constructively with regulators. The suit specifically targets State Farm's Hail Focus Initiative, which Drummond claims began altering its approach to wind and hail claims in 2020, employing "restrictive, extra-contractual standards" to deny or minimize legitimate claims. Drummond is seeking to enforce consumer protection and anti-racketeering laws, along with civil penalties and restitution for affected policyholders. State Farm is the largest homeowners insurance provider in Oklahoma, serving approximately 300,000 policyholders.