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State Farm

Illinois Supreme Court

A federal judge in Saint Louis has granted class action certification in a civil racketeering case against Bloomington-based State Farm Insurance.

The Clifford Law Office in Chicago alleges State Farm employees ran a dark money campaign to elect Lloyd Karmeier to the State Supreme Court, believing he would support the insurance company once a certain case reached the high court.

State Farm HQ
Staff / WGLT

State Farm Insurance is getting its agents out of the financial advisory game.

Starting in April, about 12,000 agents who are licensed to sell mutual funds and other retirement investment products will no longer do so.

Downtown SF building
Staff / WGLT

More than 12 years after Hurricane Katrina ravaged the gulf coast, a fraud case involving State Farm Insurance will go before the U.S. Supreme Court. Justices have agreed to hear arguments in the Bloomington-based company's appeal of 758,000 dollars in damages.

State Farm HQ building
Ralph Weisheit / WGLT

State Farm Insurance reported a $2 billion increase in net income in 2015, but much of that resulted from capital gains on stock investments State Farm has in other companies.

Net income for 2015 was $6.2 billion compared to $4.2 billion the previous year. State Farm spokesman Dave Phillips said the company benefited from its investment in the stock of companies that merged last year.

"Two mergers between four companies, specifically pharmaceuticals, and that helped with investment strategy and the investment profits of the company."

Ralph Weisheit / WGLT

McLean County Board Chairman Matt Sorensen faces a federal fraud indictment. The document alleges Sorensen conspired with an outside consulting firm when he was an internal consultant at State Farm Insurance to engage in false billing for work never done. Sorensen allegedly personally benefited by more than $370,000 in the scheme. State Farm says it alerted federal prosecutors to the situation in 2012 and Sorensen has not worked for State Farm since.

Normal Mayor Chris Koos sits during a town council meeting.
Ralph Weisheit / WGLT

Mayor Chris Koos is taking a wait and see approach on the indictment of McLean County Board Chair Matt Sorensen.  He spoke with WGLT's Mike McCurdy.

Sorenson is accused of using his position as an internal consultant at State Farm Insurance to collude with an outside firm to file phony consulting work invoices. The indictment also alleges Sorenson steered State Farm work to fellow defendant Navdeep Arora a former partner at the firm of McKinsey and Company, who was arrested Sunday. 

State Farm Insurance is raising its rates for auto coverage in Illinois. The 2.6% average hike goes into effect in February. It's the second time in less than 12 months State Farm has raised Illinois rates. April's increase was less than a percent. Even together, the two hikes are less than the increase most other insurers have announced. Allstate rates are going up 5.7%. Geico has increased auto premiums significantly as well.

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