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Insurance provider State Farm will pay a US$2 million settlement following a two-year investigation by the Montana State Commissioner of Securities and Insurance (CSI) into the insurer’s claims handling practices.The investigation revealed that State Farm had underpaid some drivers who had been in accidents with State Farm’s insureds from November 1, 2018, through April 15, 2022.The settlement and order also require State Farm to reevaluate all affected claims and pay any additional money that may be owed to Montana customers. If State Farm does not take corrective actions, CSI will fine the insurer an additional US$2 million. As a result of CSI’s investigation, State Farm reports that it has reviewed more than 2,436 Montana claims and made an additional US$1,182,927.43 in payments to Montana customers.
