State Farm Executive Fired Over Comments on Rate Hikes and Racial Remarks
Background
A top State Farm executive, Haden Kirkpatrick, was fired this week after making controversial comments about the insurer’s California rate hikes and making disparaging remarks about Pacific Palisades homeowners. The comments were recorded on an undercover video published by O’Keefe Media Group, a conservative outlet.
Kirkpatrick’s Comments
In the video, Kirkpatrick said that the request by State Farm’s California subsidiary for rate hikes was “kind of” orchestrated “but not in the way you would think.” He also claimed that the company’s people look at the situation and say, “S—, we’ve got like maybe $5 billion that we’re short if something happens.” He continued, “We’ll go to the Department of Insurance and say, ‘We’re overexposed here, you have to let us catch up our rates.’ … He’ll say ‘Nah.’ And we’ll say, ‘OK, then we are going to cancel these policies.'”
State Farm’s Rate Hike Request
State Farm General, the subsidiary and California’s largest home insurer, has filed for an emergency 22% rate hike for its homeowners policies, citing the fires and a $5-billion decline in its surplus account over the last decade. The insurer has said it is now left with just over $1 billion in surplus to handle another big catastrophe.
Kirkpatrick’s Racial Remarks
During the video, Kirkpatrick also made racial remarks about Pacific Palisades homeowners, saying, “They should not have been built in Pacific Palisades… they want to have natural areas around them for their ego.” He also mentioned that he tasked the company’s HR team to create a workforce that is more “Hispanic and Latino” by the year 2040, which he said was being “biased… away from my own kind.”
State Farm’s Response
State Farm released a statement saying that “the individual in the video is no longer associated with State Farm” and that his assertions are “inaccurate and in no way represent the views of State Farm.” The company also stated that it does not condone or agree with Kirkpatrick’s remarks about the victims of the tragedy or its hiring practices.
Consumer Watchdog’s Response
Los Angeles advocacy group Consumer Watchdog sent a letter to Insurance Commissioner Ricardo Lara calling on the commissioner to investigate Kirkpatrick’s remarks, which it said “suggest that State Farm is not simply reacting to financial risk but is deliberately using cancellations and the threat of future cancellations to pressure the Department of Insurance for rate increases.”
Conclusion
The controversy surrounding Kirkpatrick’s comments has raised concerns about the insurer’s motives and practices. The incident has also sparked calls for an investigation into State Farm’s rate hike request and its hiring practices.
FAQs
* What did Haden Kirkpatrick say in the video?
Kirkpatrick made controversial comments about State Farm’s rate hikes and made disparaging remarks about Pacific Palisades homeowners.
* Why was Kirkpatrick fired?
Kirkpatrick was fired for making the remarks, which were recorded on an undercover video.
* What did State Farm say about the video?
State Farm said that the individual in the video is no longer associated with the company and that his assertions are inaccurate and do not represent the views of State Farm.
* What did Consumer Watchdog say about the incident?
Consumer Watchdog called on Insurance Commissioner Ricardo Lara to investigate Kirkpatrick’s remarks and State Farm’s rate hike request.
