State Farm Unit Accused Of Routinely Denying Auto Benefits

By Jack Queen (February 21, 2020, 8:57 PM EST) -- A State Farm unit used an inadequate claims review process to deny or reduce personal injury benefits to policyholders who required medical treatment after car accidents, a proposed class alleged in Kentucky federal court.

Heather Hack told the court Thursday that State Farm Fire and Casualty Insurance Co. withheld thousands of dollars in benefits based on cursory medical necessity reviews by third-party vendors. She claims the practice violates the state's Motor Vehicle Reparations Act, which mandates speedy compensation for car accident victims in routine cases.

The so-called utilization reviews State Farm based its denials and reductions on were conducted by experts who...

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