In a recent Insurance Journal Website story, it was reported that Wisconsin residents have collected more than $2 million in reimbursements in a multistate settlement with State Farm Insurance Co. over vehicle titles.
Wisconsin Attorney General Peg Lautenschlager announced the settlement agreement in a written statement on Friday, April 28th and the Associated Press issued a story on the settlement.
According to Lautenschlager’s press release and the AP article, State Farm reached a $40 million settlement with Wisconsin and 48 other states in January 2005 over allegations the insurance company was improperly titling damaged vehicles it took ownership of from policyholders.
State Farm spokesperson Jeff McCollum refuted the “allegations.
“There were never any ‘allegations’ that we were improperly titling vehicles,” McCollum said. “In fact, State Farm discovered that some titles were not properly obtained during internal reviews and brought it to the attention of the attorneys general nationwide, then went on to reach an agreement with the attorneys general.”
“We (State Farm) are not in the business of repairing and reselling cars. We just don’t do it. Salvage companies do that. We have undertaken steps to prevent this from happening again.
As the nation’s largest auto insurer, State Farm handles in excess of 6 million auto insurance claims each year. We are committed to meeting our responsibilities as an auto insurer under the various state branded vehicle title laws,” McCollum added.
Lautenschlager said 1,089 people in Wisconsin have received a total of $2.5 million.
State Farm is still taking late claims for possible compensation.
Claims may be sent to: Title Compensation Claims Administrator, P. O. Box 1751, Faribault, Minn. 55021-1.
Source: Associated Press; State Farm Insurance Company, Wisconsin Attorney General’ Office