The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

FIND OUT WHETHER STATE FARM DECLARED YOUR USED

STATE FARM AGREEMENT INFORMATION FOR USED MOTOR VEHICLE OWNERS

On January 10, 2005, Michigan Attorney General Mike Cox and other state Attorneys General entered into an agreement with State Farm Mutual Insurance Company (see press release announcing settlement at http://www.michigan.gov/ag/0,1607,7-164-34739_34811-108022--M_2005_1,00.html). The agreement concerned State Farm not obtaining salvage titles for some vehicles that it declared "total loss vehicles" and that it had taken ownership of through insurance settlements. "Total loss vehicles" includes vehicles damaged by collision or flooding, or those which were stolen or unrecovered theft vehicles.

As part of the resolution of that matter, State Farm has agreed to pay compensation to all consumers who now own vehicles that State Farm was required to title as salvage but did not. Over the next several months, State Farm will be working with the state Attorneys General and state motor vehicle titling departments to make a final determination of which vehicles will be eligible for a compensation payment, and the names and addresses of the owners of these vehicles.

It is expected that the owners of these vehicles will be identified across the United States by early July 2005. By September, it is expected that the owners will be mailed a claim form to complete and return to the claims administrator. These payments will range from $400 to $10,000 depending on the average retail values of the vehicles. Only consumers who complete and return the claim form will be eligible for a compensation payment.

To find out if State Farm ever took ownership of your vehicle due to a total loss auto insurance claim, please write to the following address:

Title Resolution

c/o Rust Consulting

P.O. Box 1751

Faribault, MN 55021-1751

Be sure to include the following in your request:

• your name, mailing address, and telephone number;
• the year, make and model of your motor vehicle; and
• the 17 digit vehicle identification number – found on your title, and often on the dashboard or door frame of your vehicle.
• Also, make sure that you clearly state in your letter that you are asking whether State Farm ever took ownership of your vehicle due to a total loss auto insurance claim.

Please understand that not every vehicle included in the current review of records by State Farm, state Attorneys General, and state motor vehicle titling agencies will be eligible for a compensation payment.

Consumers may contact the Attorney General's Consumer Protection Division at:

Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909

517-373-1140
Fax: 517-241-3771

Toll free: 877-765-8388

www.michigan.gov/ag (on-line complaint form)