State Farm Hit On Auto Glass Claims

Minnesota regulators have charged State Farm with more than 13,000 insurance law violations, exposing the company to potential fines of over $130 million for its handling of auto glass claims.

The alleged misconduct, which the company denied, led Minnesota Commerce Commissioner Jim Bernstein to denounce the firm. "State Farm claims to be a good neighbor, but it acts more like a neighborhood bully to consumers and glass shops," he declared in announcing the charges.

In a statement of charges and order to appear, the Department of Commerce, which regulates insurers, accused the Bloomington, Ill.-based company of engaging in unfair trade and claim settlement practices for glass damage claims this year and in 2001.

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