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The examiners reviewed files drawn from the category of Closed Claims for the period September 1, 2002 through August 31, 2003, commonly referred to as the "review period". The examiners reviewed 42 State Farm Life Insurance Company claims files. The examiners cited one claims handling violation of the Fair Claims Settlement Practices Regulations and/or California Insurance Code Section 790.03 within the scope of this report. Further details with respect to the files reviewed and alleged violation are provided in the following tables and summaries.

The following is a brief summary of the criticisms that were developed during the course of this examination related to the violations alleged in this report. This report contains only alleged violations of Section 790.03 and Title 10, California Code of Regulations, Section 2695 et al. In response to each criticism, the Company is required to identify remedial or corrective action that has been or will be taken to correct the deficiency. Regardless of the remedial actions taken or proposed by the Company, it is the Company's obligation to ensure that compliance is achieved. There were no recoveries discovered within the scope of this report.

1. The Company failed to maintain hard copy claim files. In one instance, the Company failed to maintain hard copy files or claim files that are accessible, legible and capable of duplication to hard copy for five years. The Department alleges this act is in violation of CCR §2695.3(b)(3).

Summary of Company Response: Although it is the Company's policy to maintain file copies, in this isolated instance the requested file could not be located at the time of the examination. A substitute file was provided for review.

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Last Revised - July 07, 2005
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