Farmers Insurance Declares Coverage in Ethel Adams Case

LOS ANGELES--Oct. 1, 20059, 2005--Farmers Insurance announced today that coverage is available for the losses incurred by Ethel Adams, a motorist injured in an intentional road rage incident earlier this year.

"Farmers has repeatedly stressed that we are doing everything we can to find coverage for Ethel Adams. We have believed all along that key pieces of evidence, such as the final investigative police report, and a surveillance tape, would support our belief of additional negligence in this matter and would allow us to grant coverage. These have not yet been made available," said Jeff Beyer, chief communications officer for Farmers.

"Because of our belief that the facts will ultimately support a position of coverage for Ethel Adams, and because the Washington Department of Insurance has asked us to take action, we will on this occasion act based on our own circumstantial information and in the belief that the facts, once released to us, will also support coverage for Adams," said Beyer. "We are confident in this case that the police report and surveillance tape will substantiate the circumstantial evidence we have. We look forward to getting this information."

Moving forward on a settlement of this claim, Farmers noted it needs to receive the medical records previously requested from Ethel Adams' attorney to determine the financial amount of the settlement.

Farmers today reiterated that it has never denied coverage for Ethel Adams, who has clearly suffered injuries from this incident. It has been Farmers' belief that Washington state-specific case law requires it to prove negligence on the part of someone involved in this incident, other than the intentional act of the perpetrator, for there to be coverage. Farmers would like to work with the Washington Department of Insurance to seek a legislative remedy to this matter.

Farmers has been diligent in the actions it has taken to respond to this claim since the beginning, including hiring its own private investigator, attempting to communicate with Ethel Adams' attorney, staying in close contact with the authorities, and clearly explaining its position to the Department of Insurance and to the news media.

Farmers is in the business of paying claims, and makes approximately $8 billion in claim payments each year. It has been committed to the state of Washington for more than 50 years and today is Washington's second largest insurer, providing coverage to 566,000 automobiles, 274,000 homes and 17,000 small businesses in the state.

The Farmers Insurance Group(R) companies comprise the nation's third-largest personal lines property & casualty insurance group -- helping to restore the lives of over 15 million customers when the unexpected happens. Headquartered in Los Angeles and doing business in 41 states, these companies provide homeowners, auto, business, life insurance, recreational products and financial services to more than 10 million households through 17,000 exclusive and independent agents and district managers. For an agent near you, call 1-800-FARMERS or visit www.farmers.com.