Minnesota Fines American Family, Farmers Subsidiary Over Third-Party Claims Handling

Just because a carrier can’t get a hold of their at-fault policyholder or hasn’t received word of the crash from them doesn’t excuse them from having to pay third-party claims, the state of Minnesota reminded insurers and residents last month. The message was reinforced by nearly $50,000 in combined fines levied upon Farmers subsidiary Bristol West Casualty and American Family, according to the Minnesota Commerce Department. “When there’s damage from a crash caused by the other driver, you must be treated fairly by that driver’s insurance company,” Minnesota Commerce Commissioner Michael Rothman said in a statement June 30. “Getting hit by another car is a terrible experience, but it gets even worse if the at-fault driver’s insurance company tries to stonewall and deny your claim, which is not acceptable.”