About 100,000 current or former clients of State Farm Insurance will receive refunds averaging $1,224 each. These customers did not receive the discounts after they better prepared their homes to withstand hurricanes. Former policy holders should expect their checks to come within 6 months, current policy holders will probably be “rewarded” through credits on their accounts. The payments should include 7% interest because State Farm wrongfully held their policy holders’ money when it should have never been collected in the first place. This behavior is just further evidence of how insurance companies are losing focus and not performing their end of the contract they have with their insured. The real purpose of insurance is to pool and distribute risk amongst its policy holders. It is not to try to pay as little as possible to each for trying to make a claim, or overcharging them. It’s akin to being a member of a club, except that this club does not provide you with the benefits when you need them and continually raises the price without increasing its service.
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