NAIC Begins Investigation Into State Farm Practices

The National Association of Insurance Commissioners is investigating reports that State Farm, the nation’s largest auto insurer, improperly denied claims for treatment of injuries in accidents.

NAIC President George Nichols III said it was not immediately clear how widespread the practice might be, but investigators will study claims for treatment of injuries in all the states. Initially, the investigation will concentrate on medical review utilization organizations. But the ultimate scope of the investigation will be decided by a core group of regulators. State Farm has acknowledged that some claims might have been improperly handled and welcomed the NAIC probe.