Court Orders State Farm to
Tempe, AZ (02/12/01) - The Insurance Consumer Advocate Network is pleased to announce an Injunction issued by Muscogee County (Georgia) Superior Court which compels State Farm to Pay Diminished Value (the difference between pre-loss and post-repair vehicle resale values) to their insureds and instructs State Farm to "notify" their insureds of their right to be compensated for this damage.
PAY DIMINISHED VALUE
( Country Companies Settles ! )
This Injunction was issued on December 01,2000. State Farm immediately petitioned the Georgia Supreme Court requesting a "stay" on the trial court's Injunction. That request was "denied" by the Georgia Supreme Court on January 12, 2001 with the notation that . . . "All the Justices concur."
In issuing the Injunction, the trial court pointed out that State Farm had admitted (in deposition) they had been collecting premium for Diminished Value coverage all-along !
The Injunction further states . . . "The Court ORDERS and ENJOINS State Farm to collect, catalog and maintain any information necessary to make a determination as to the amount of any loss for diminution in value sustained by the vehicles of its insureds."
"I-Can" feels it would be appropriate for Consumers to have their opinions considered by the Court before any method for the measurement of Diminished Value is approved.
INVITATION: The Insurance Consumer Advocate Network maintains a "Diminished Value Consumer Survey" facility on their web site. Consumers wishing to express their opinion on the subject of Diminished Value are invited to visit that portion of the "I-Can" web site by going directly to . . .
Country Companies Insurance . . .
. . . has agreed to pay $6.3 Million to resolve a lawsuit alleging fraud and breach of contract for their practice of mandating the use of After-Market Body Parts in the repair of their insureds' vehicles.
Country Companies has further agreed to suspend that practice and to withdraw their support of CAPA (Certified Automotive Parts Association). The settlement included Country Companies' denial of any wrong doing.
According to a Press Release issued by the NAII (National Association of Independent Insurers) Country Companies had apparently concluded it was preferable to pay the $6.3 Million than to defend their actions in court and run the risk of having Country Companies' Internal Documents being made public.