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Whistleblowers Say Katrina Claims Shredded

Two independent insurance adjusters who worked on claims for State Farm Insurance Company accused the firm of destroying or altering important documentation so that damage claims from Hurricane Katrina would not have to be paid out to policy holders.

 

Kerri and Cori Rigsby, who both had processed State Farm claims for more than eight years, said in a recent interview on the ABC television program 20/20 that they witnessed “widespread” fraud in State Farms offices located in Biloxi and Gulfport, Mississippi. The adjusters claim that the company had even hired a shredding truck to destroy important documentation crucial to policy holder claims. The sisters have turned over internal State Farm documentation and provided witness statements to law enforcement authorities. More than 84,700 claims were filed with State Farm in Mississippi related to Hurricane Katrina.

 

According to the Rigsbys, State Farm pressured engineers investigating claims to conclude that structural damage was caused by water and not wind. Water damage is not covered under many insurance policies. Many homeowners have reported difficulties in collecting insurance money after the catastrophic damage caused by the Category 3 hurricane that plowed through the Gulf of Mexico region and destroyed the city of New Orleans one year ago. A number of class action lawsuits have been filed against insurers by homeowners in the Gulf states for the denial of claims. Famed attorney Richard Scruggs, featured in the Russell Crowe film The Insider for his role as lead counsel in the landmark tobacco litigation, is handling a number of the cases. Mississippi Attorney General Jim Hood has also filed suit against insurers for denial of claims.

 

A spokesperson for State Farm said the insurance firm was “outraged” over the report that was aired on 20/20 on August 18. “How the program characterized State Farm's claims handling is grossly unfair," responded State Farm Insurance Claims Vice President Susan Q. Hood in a statement.

 

Hurricane Katrina crashed into Louisiana, Mississippi, and the Alabama Gulf Coast on August 29, 2005. More than 1,800 persons were killed, 800,000 persons were displaced from their homes and billions of dollars in structural damage resulted. Full Washington Policy Brief

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Confidata document destruction located in Utica New York, is a member of NAID and follows FACTA and HIPAA records destruction requirements. CONFIDATA is a division of Empire Recycling Corporation

 

 

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