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(Courthouse News photo/Amanda Pampuro)
OKLAHOMA CITY (CN) Home insurer Farmers Insurance will pay $25 million to settle allegations it underpaid or denied over 1,000 earthquake damage claims relating to a spike in seismic activity in the wake of fracking in the Woodford Shale.
Oklahoma Attorney General Mike Hunter and Oklahoma Insurance Commissioner Glen Mulready, both Republicans, announced the deal Monday. They say Farmers “overwhelmingly denied” the claims filed after the increase in earthquakes began in 2013.
“In certain cases, Farmers justified denial of coverage based on its claim that the damage to the insureds’ property was not caused by an earthquake and/or predated the seismic activity,” their six-page complaint filed April 1 states. “However, Farmers, in most instances, had not conducted inspections of the property prior to issuing the earthquake policy to support such denial of coverage. In other cases, Farmers utilized inadequately trained claims adjuste
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