Farmers Undervalues Lost Property, Suit Says

Law360, New York (May 11, 2011, 8:21 PM EDT) -- Farmers Insurance Co. Inc. was hit with a putative class action Friday in California state court that accuses the company of improperly calculating depreciation in the amounts it pays policyholders for property lost or damaged because of fires and other incidents.

Named plaintiff Frances Marc Alexander contends that Farmers uses a standard system for determining the depreciation of property that doesn't consider the actual physical condition of the item when it was damaged or destroyed, an alleged violation of the California Insurance Code.

“Farmers' uniform practice...
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