Farmers Insurance has come into a settlement agreement with Oklahoma state over the earthquake claims which went unpaid.
Mike Hunter General attorney of Oklahoma and Glen Mulready Insurance Commissioner revealed that they have reached a settlement of $25 million with the insurer. As a component of the settlement farmers will revive the claim process and re-assess each claim with the assistant of an independent administrator. The insurer will also pass further payments for the claims as needed if the property damages surpass the agreed amount.
According to the officials of Oklahoma, only 19% of earthquake claims from 2010 were paid through May 2016. Further research on this situation also disclosed that Farmers failed to pay about 1000 earthquake insurance claims submitted by Oklahomans who had bought insurance coverage.
Attorney General Hunter said, “I am pleased to announce that after finding the middle ground, Farmers have consented to this settlement. Through a long process, we will make sure each Oklahomans who have endured damages from the earthquake and have submitted the claim to Framers will have a chance to get their claim independently reviewed and the reparation of their damaged property.”
Farmers Insurance commented in a statement that It is important to highlight that the Farmers have not accepted any wrongdoing in this settlement and our choice to settle should not be misunderstood as an acceptance that any claims were inadequately rejected.