Drummond files motion to intervene in case against State Farm over ‘Hail Focus Initiative’ scheme
OKLAHOMA CITY (Dec. 4, 2025) – Attorney General Gentner Drummond filed a motion to intervene today in a case against State Farm Fire and Casualty Company, alleging that the company operated a coordinated program to limit roof-related insurance payouts by denying or reducing valid hail and wind claims.
In an accompanying petition for intervention filed in Oklahoma County District Court, Drummond asserts that while State Farm marketed its policies as providing full replacement-cost coverage, the company predetermined claim outcomes to meet corporate savings targets rather than honoring policy promises. Drummond is asking the court to award penalties, damages, structural reforms and the recovery of profits State Farm allegedly obtained through its scheme.
“Oklahomans are paying rising homeowners insurance premiums yet receiving less protection in return, as State Farm simultaneously pursues additional rate increases while allegedly escalating its claim denials and underpayment practices,” Drummond said in the motion. “Oklahomans can weather inflation and Oklahoma storms, but they cannot withstand a system in which they are charged more while effectively insured less. Inflation and weather do not explain, let alone justify, the widening gap between what Oklahomans pay and what they receive.”
Drummond said profiting from increased premiums while reducing claim fulfillment undermines public confidence in the insurance system and places Oklahoma homeowners at unacceptable risk.
“Protecting consumers from unfair and deceptive insurance practices is a core sovereign responsibility, and intervention is necessary to ensure that insurers operating in this State do not engage in unlawful conduct that leaves Oklahomans paying more for coverage they do not truly receive,” he said.
The petition alleges that State Farm implemented an internal program, commonly referred to as the “Hail Focus Initiative," to drastically reduce roof indemnity payments in Oklahoma.
“Rather than adjust claims according to coverage language in its policies, State Farm secretly substituted restrictive, extra‑contractual standards and used those hidden standards to deny or minimize payment of legitimate covered losses,” Drummond said in the petition.
The petition accuses State Farm of violating the Oklahoma Consumer Protection Act, the Oklahoma Racketeer-Influence and Corrupt Organization Act and the Oklahoma Deceptive Trade Practices Act. It also accuses State Farm of Civil Conspiracy and Unjust Enrichment.
The intervention follows an Aug. 12 letter to Oklahoma Insurance Commissioner Glen Mulready in which Drummond asked the Insurance Department to collaborate with his office to combat rising homeowners insurance premiums in Oklahoma.
Read the filing.
