OKLAHOMA CITY (AP) — Oklahoma’s attorney general and state insurance commissioner announced Monday a $25 million settlement with Farmers Insurance over the company’s handling of earthquake claims.
A state investigation into the California-based insurance company found that Farmers denied or failed to properly pay about 1,000 earthquake claims submitted by Oklahomans who had purchased earthquake coverage, according to a press release from Attorney General Mike Hunter and Insurance Commissioner Glen Mulready.
As part of the settlement, the company will re-evaluate claims using an independent administrator, the release states. Oklahomans who had earthquake claims denied will receive a written notice that their claims have been reopened for review.
In a statement, Farmers said it believes the actions taken with respect to earthquake claims in Oklahoma “are in good faith and correct.”
“It is important to emphasize that Farmers has not admitted to any wrongdoing in this settlement, and our decision to settle should not be misconstrued as an admission that we believe any claims were improperly denied,” Farmers said.
Thousands of earthquakes have been recorded in Oklahoma in recent years, many linked to the underground injection of wastewater from oil and gas production.