Farmers Sues Body Shop in Contra Costa County to Combat Insurance Fraud

    LOS ANGELES--July 16, 2002--Farmers Insurance Exchange and Truck Insurance Exchange began serving summons and complaints today upon a Contra Costa County body shop and its owners, accusing them of taking part in a large scale scheme designed to defraud the companies' policyholders. Using a statute that the California Legislature passed specifically to help combat insurance fraud, Farmers' effort represents a continuation of its efforts to combat fraud.
    The suit, which first became public today, details how these unscrupulous individuals billed Farmers for services that were never rendered, inflated repair costs and submitted phony repair invoices.
    "We are determined to take the profit out of fraud. It is unfair for honest individuals to pay for the actions of a few dishonest people. Farmers is committed to fighting fraud and controlling the cost of insurance for our customers," said Doug Ashbridge, Director of Special Investigations at Farmers.
    The Contra Costa County action seeks over one million dollars based upon an investigation that began in April of 2002. The investigation revealed that the shop inflated invoices up to three times the actual services rendered and billed for services never provided.
    The suit served today is similar to other successful cases pursued by Farmers against body shops and are part of Farmers' nationwide commitment to protect its customers from added expense directly linked to insurance fraud.
    Farmers is represented by Dennis B. Kass of Manning & Marder, Kass, Ellrod, Ramirez, LLP.
    Farmers Insurance Group of Companies includes the nation's third-largest group of home and auto insurers. Headquartered in Los Angeles and doing business in 41 states, the Farmers Insurance Group of Companies provides home, auto, business, life insurance and financial services to more than 10 million households through 17,000 exclusive and independent agents and district managers.