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NASFA
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Agent Alert
State Farm agents need to be aware of an embarrassing
issue that has arisen for State Farm. Numerous news
agencies have reported that State Farm donated
approximately $2.4 million to an Illinois Appellate
Judge who later voted for State Farm in the $1 billion
replacement parts case. Several attorneys have filed
class action lawsuits against State Farm over the
donations.
Regardless of the outcome of the suits, State Farm has
been painted by the media to have improperly influenced
the judge with its donations. Despite articles in such
diverse publications as the Chicago Tribune and
the Autobody News, among many others, State Farm
had remained remarkably silent.
Now, on the Intranet news hub, there is a report of
the unsuccessful attempt to further appeal the already
decided case. State Farm misses the point. It is the
appearance of impropriety, and the size of the alleged
donations that are shocking to our customers. The
American system of justice expects everyone to stand
equal before the law, not those who can contribute the
most.
NASFA wants you to know that these allegations exist.
For more in-depth coverage of this scandal, click on the
links on the right. NASFA members can also add their
thoughts on
our round table.
Given the amount of time, effort and money State Farm
has spent on ethics in the last 15 years, this conduct
is unbelievable and inexcusable. Each agent can remember
the premise upon which the mandatory ethics meetings
were ordered: State Farm wanted to show the
insurance-buying public its significant commitment to
ethical conduct and behavior. The responsibilities
imposed upon you as an agent by State Farm to act
ethically and report unethical conduct apparently were
neither heard nor followed by Bloomington executives. It
is hard to imagine that contributions of this size,
reportedly between $2.4 and $4.0 million, were not known
at the highest corporate levels.
NASFA suggests, when asked by customers about the
changes, you respond first by repeating what State Farm
has been telling you; ethical conduct to the highest
degree is constantly expected from all State Farm
employees. Nothing less has been tolerated in the past,
and you would expect that to be the case now. Further,
this sorry incident has nothing to do with the
establishment of rates or the fair and prompt adjustment
of claims. That you, as an agent of State Farm expect
the company to do the right thing discover those
involved, and terminate them. |
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