NEW YORK STATE INSURANCE DEPARTMENT

IN 1997, WE WENT THROUGH A LARGE SCALE CLAIMS REORGANIZATION WHICH CENTRALIZED CLAIM EMPLOYEES FROM 7 STATES INTO THE UPSTATE NEW YORK AREA. PART OF THE NEW YORK STATE ADJUSTER LICENSING INVOLVED COMPLETING A "CHARACTER" FORM IN WHICH YOU NEEDED TO LIST 4-5 PEOPLE YOU KNEW, WORKED WITH, AND LIVED IN THE SAME COMMUNIY WITH FOR AT LEAST 5-YEARS. A REQUIREMENT NEAR IMPOSSIBLE FOR SO MANY NEW PEOPLE MOVING INTO A NEW AREA. STATE FARM APPROACHED THE INSURANCE DEPARTMENT WHEN WE LEARNED THAT SOME OF THE "5 YEAR" FORMS PRESENTED MAY HAVE CONTAINED INACCURATE INFORMATION. I INFORMED THE INVESTIGATOR THAT OF THE 5 PEOPLE ON MY FORM, THERE WAS 1 THAT I HAD KNOWN FOR ONLY 4.5 YEARS -- BUT NOT 5. THOUGH A MINOR DETAIL, IT WAS FALSE JUST THE SAME. AS FAR AS I KNOW, THE INSURANCE DEPARTMENT AND STATE FARM AGREED TO RESOLVE/DISMISS THE MATTER IF A FINE OF $500 PER IMPACTED EMPLOYEE WAS PAID -- STATE FARM PAID THIS AMOUNT ON OUR BEHALVES SINCE WE COMPLETED THE FORMS UNDER THEIR SUPERVISION AND AT THEIR DIRECTION. AS AN ASIDE, NEW YORK STATE HS SINCE ALTERED THE LANGUAGE OF THE "5 YEAR" FORM TO MAKE COMPLIANCE POSSIBLE.

Settled

Monetary/Fine

$500.00

N/A -- THE FINE WAS PAID AND, I BELIEVE, NEW FORMS SUBMITTED. THERE WAS NO FURTHER ACTION OR MENTION OF THE SITUATION. AS AN ASIDE, NEW YORK STATE HSA SINCE ALTERED THE "5 YEAR" FORM TO MAKE COMPLIANCE POSSIBLE.