State Farm, an insurance company, is set to pay out millions of dollars to a family in a settlement after attempting to offer a lower amount following a woman’s death. The incident began with the tragic demise of Andrea Lovato, who was killed in a car accident in 2017. Lovato swerved to avoid a minivan that was speeding at 70 mph in a 35 mph zone, resulting in a fatal head-on collision. Remarkably, her four-year-old nephew, who was also in the vehicle, survived. Just a week before the accident, Lovato had taken measures to upgrade her State Farm Insurance policy after her car was stolen.
However, State Farm sought to play dirty in this case. When the family discovered evidence establishing that Lovato’s policy had higher limits, the insurance company attacked Lovato’s character. According to the family’s lawyers, State Farm even went as far as claiming that Lovato had intentionally caused the crash as an act of suicide. In response, the family decided to sue State Farm in 2020.
After a trial in late October, a jury delivered a special verdict on October 31, awarding $36 million in total. This amount included $12 million in damages to family members and Lovato’s estate, as well as $24 million for bad-faith practices and breach of contract. Of the $24 million, $20 million was assigned as punitive damages. The jury determined that State Farm had violated its contract with Lovato by offering a settlement significantly lower than what her policy guaranteed. Additionally, the company was found to have willfully violated New Mexico’s Unfair Practices Act and Insurance Practices Act, as well as acted in bad faith towards Lovato’s family.
A final ruling on the verdict is expected soon. State Farm expressed disappointment in the verdict and asserted that it did not act in bad faith. The company plans to explore all available legal options, including appealing the verdict. While the family is satisfied with the outcome, their lawyer, Maier, described State Farm’s behavior as “the most egregious conduct I’ve ever seen by an insurance carrier.”
