25 Aug

Whistleblowers accuse State Farm Insurance of cheating victims of Hurricane Katrina

ABC News is reporting that [tag]State Farm Insurance[/tag] supervisors demanded that hurricane damage reports be altered so that the company would not have to pay claims.

Kerri Rigsby and Cori Rigsby were [tag]independent adjusters[/tag] working exclusively for State Farm for eight years. They say that they’ve turned over documents to the FBI and Mississippi investigators relative to their claims of [tag]corruption[/tag] within the company.

The sisters say that they saw large scale [tag]fraud[/tag] in the Biloxi and Gulfport field offices, and they believe that a large shredding truck brought in by the company was used to destroy documents related to Hurricane Katrina. The sisters also say that supervisors were pressuring adjusters and consultants to attribute hurricane damage to water, rather than wind, so that claims would not have to be paid. Under the State Farm policies, water damage is not covered, but wind damage is.

State Farm says they have started an [tag]internal investigation[/tag] into the matter.