Thursday, April 19, 2007

State Farm Ordered to Pay Largest Fine Ever in Louisiana

State Farm was ordered to pay $18 million to about 18,000 of its auto insurance policyholders and refund about $4.7 million in overpayments to customers, plus interest. The Louisiana Department of Insurance said this seems to be the largest fine ever paid by an insurer in the state of Louisiana. State Farm reportedly included no-fault wrecks when it calculated rates for new policies written between April 2003 and March 2006, a practice which is against Louisiana law. State Farm is in the process of contacting affected customers. Rebecca Mowbray, New Orleans Times-Picayune 04/18/2007 Read Article: New Orleans Times-Picayune

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