NAIC State Farm Probe Concluding
By Daniel Hays
NU Online News Service, May 21, 2:59 p.m. EST?A rough draft report on a multi-state market conduct probe of State Farm should be ready for regulators to look at in June, an official leading the inquiry said.
But after the final report goes to the National Association of Insurance Commissioners when it meets next month in Philadelphia, "it may not be public for awhile. That's something we have to discuss," said Kirk Yeager, assistant commissioner of consumer affairs in the Colorado Insurance Division.
Colorado is the lead state conducting the investigation into questionable practices by State Farm used to deny medical treatment claims after they were processed by two medical review firms.
State Farm said it no longer employs the two firms that were featured in "Dateline NBC" reports that sparked the NAIC market conduct investigation.
According to "Dateline," in some cases physicians' findings were altered and some claims were rejected by non-medical personnel.
Mr. Yeager said that at various points between 10 and 11 states have been taking a look at the Bloomington, Ill.-based company. The first part of the inquiry looked at past procedures, while the second phase examined the company's current practices.
The examination, he said, needed to look at the operating policy in the company's home and regional offices to determine which are State Farm's general business practices and which are the exceptions.
State Farm has said it welcomed the examination and that its files are open.
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