State Farm Accused of Cheating Katrina Customers

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Kerri Rigsby and Cori Rigsby, two independent insurance adjusters who worked exclusively for State Farm for eight years, say they have turned over to the FBI and Mississippi investigators thousands of documents proving that the insurance company systematically cheated victims of Hurricane Katrina. In an interview with ABC News, Rigsby and Rigsby describe what they call “widespread fraud” in State Farm offices in Biloxi and Gulfport, Mississippi.

The adjusters say that the insurance company brought in a shredding truck to destroy documents; however, State Farm maintains that shredding documents is standard procedure to protect customers’ privacy. However, Rigsby and Rigsby also said that outside engineers were pressured to prepare reports stating that structural damage was caused by water (not covered in State Farm policies), not wind. Furthermore, they reported that when wind was listed as the cause of damage, the reports were hidden and new reports were ordered.

Hundreds of homeowners in the areas damaged by Katrina have complained that they cannot get paid by their insurance companies, and State Farm is often mentioned as an especially difficult company to get money from. One of the most frequent reasons cited for refusing to pay is that house damage was caused by water, not wind. However, it is not unusual to hear homeowners say that they were told this even if their house did not flood.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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