Sen. Josh Hawley (R-MO) questioned executives from Allstate and State Farm about what he called "a system of institutionalized fraud." (Credit: Diego M. Radzinschi/ALM)

A U.S. Senate subcommittee questioned executives from State Farm and Allstate on Tuesday after hearing testimony from clients and adjusters alleging fraud and abuse in the system.

The disaster management subcommittee hearing of the U.S. Senate Committee on Homeland Security and Governmental Affairs was called to look at claims practices following natural disasters. Sen. Josh Hawley, the subcommittee’s chair, said devastating catastrophes were leaving families homeless and in debt because insurance companies wouldn’t pay out their claims.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Corey Dahl

Corey Dahl is assistant editor with PropertyCasualty360.com. Reach her at [email protected].