State Farm Mutual Automobile Insurance Co. has paid back $5.2-million to Montana policyholders after completing a necessary 18,000 claim reviews as part of a settlement with the Montana Commissioner of Securities and Insurance (CSI).
The settlement, which was concluded in February 2024, addresses unfair claim practices discovered in a two-year review of the company’s methods by the state regulator. The carrier was penalized $4 million as part of the settlement with the potential deduction of $2 million in lieu of compliance measures.
CSI alleged failure to conduct reasonable investigations or provider adequate explanation for claims denial in some instances…