Sunday, June 30th, 2002 — Minnesotas regulators charged State Farm with more than 13,000 insurance law violations--exposing the company to maximum fines of more than $130 million for its handling of auto glass claims.
The alleged conduct, which the company denied, led Minnesota Commerce Commissioner Jim Bernstein to denounce the firm. "State Farm claims to be a good neighbor, but it acts more like a neighborhood bully to consumers and glass shops," he declared in announcing the charges yesterday.
The Department of Commerce he heads, which regulates insurers, accused the Bloomington, Ill.-based company, in a statement of charges and order to appear, with engaging in unfair trade and claim settlement practices for glass damage claims this year and in 2001.