State Farm Insurance will pay $275,000 and continue to re-evaluate thousands of unpaid claims from a 2006 hailstorm that hit Indiana.
The payment, announced today by the Indiana Department of Insurance, will go to the state’s general fund to cover the cost of the department’s examination of State Farm.
It comes on top of nearly $1.8 million that Illinois-based State Farm has paid to its policyholders after the insurance department reviewed its claims decisions.
The department received 425 complaints from Hoosiers who said State Farm denied payment for hail damage they say their homes and cars sustained in the Good Friday hailstorm of 2006.
Insurance Department examiners are still reviewing 35,000 hailstorm claims as State Farm takes several steps to remediate its claims-handling processes.
Statewide property-insurance losses totaled $1.5 billion in Indiana in 2006, the most in the nation that year, due in large part to the hailstorm.