State Farm to pay $40 million settlement

Monday, January 10th 2005, 2:27 pm

By: News On 6

LITTLE ROCK (AP) _ State Farm Mutual Auto Insurance Company has agreed to offer $40-million to thousands of car, SUV and truck owners nationwide that the insurer sold but failed to properly identify as damaged. A number of attorneys general from across the United States made announcements Monday, including Arkansas AG Mike Beebe.

Some 30,000 consumers nationwide may be eligible for payments ranging from about $400 up to more than $20,000.

Beebe's office says the payments result from State Farm's inablity to confirm that it had properly titled vehicles it had taken ownership of due to damage or theft.

Iowa Attorney General Tom Miller led an eight-state executive committee of attorneys general who negotiated the settlement.

State Farm is based in Bloomington, Illinois.

The settlement covers 49 states and the District of Columbia. Indiana reached its own deal with State Farm.