State Farm(R) Details Hurricane Claims Work, Pledges Complete, Continued Response to Concerns

BLOOMINGTON, Ill., April 11 -- State Farm agents and employees remain dedicated to helping customers recover from the devastating storms of 2005, according to Susan Q. Hood, Claims Vice President, State Farm Insurance.

"It's a monumental undertaking that continues today," said Hood, "and we stand ready to address any concerns -- old or new -- as the work goes forward." State Farm has received over 657,000 claims as a result of hurricanes Katrina, Wilma and Rita and has paid policyholders over $5.4 billion. "A series of storms of this magnitude obviously presents extraordinary challenges. Despite our best efforts," Hood said, "a small number of disputes will occur."

"Our associates are dedicated to conducting themselves in an ethical and appropriate manner," she continued. "Suggestions to the contrary are simply wrong. State Farm does not accept anything less from our employees, agents and vendors."

Hood said State Farm occasionally asks outside experts to help evaluate damage, adding, "In Mississippi, State Farm has asked for assistance from qualified professional engineering firms in less than two percent of the 84,000 homeowners claims filed there. When we seek an outside opinion, we expect an objective opinion based on the facts."

Approximately 6,000 State Farm employees and agents live and work in the storm impacted areas, many who were personally affected by the storms. They were joined by thousands of additional State Farm claim representatives mobilized to the affected areas. Many are still on site assisting policyholders.

State Farm continues to handle claims directly with its policyholders and is participating in the mediation processes established by the departments of insurance in Mississippi and Louisiana. "This was obviously a tragic and hopefully unusual series of storms," Hood said. "We encourage policyholders or others to share concerns or additional information with us at any time."

NOTE TO EDITORS: Please note that the State Farm executive quoted in this press release, Susan Q. Hood, Claims Vice President, State Farm Insurance, has a last name similar to the last name of another party to litigation involving State Farm in Mississippi. We ask you to take care not to inadvertently confuse the identity of Ms. Hood should she be quoted in stories that include the other party with a similar name. Please also note that the two people are not related; the similarity of name is a coincidence.