HELENA — Troy Downing, the Montana Commissioner of Securities and Insurance, announced on Tuesday, a settlement with State Farm Mutual Automobile Insurance Co.
State Farm agrees to pay a $2 million fine and to be subject to an additional fine of $2 million, which will be discharged upon State Farm satisfactorily implementing corrective actions.
The settlement arises out two-year examination of State Farm’s claim handling practice.
It revealed that State Farm had underpaid some drivers who were in accidents occurring from Nov. 1, 2018, through April 15, 2022.
In addition, the settlement and associated order will require State Farm to re-evaluate all affected claims between those dates.
This is one of the largest settlements of its kind in the insurance commissioner's history, according to the agency.
In addition, Downing joined 26 other states on Wednesday in a $3 million settlement with an unregistered crypto program.
The settlement resolves allegations that TradeStation violated state and federal securities laws by offering and selling securities without proper registration.
TradeStation provides crypto-asset-related financial services in the United States.
From around August 2020 to June 2022, TradeStation offered a crypto interest-earning program to United States investors.
Under this program, investors could passively earn interest on crypto assets by loaning them to TradeStation.
The company offered and promoted its crypto interest earning program in the United States without registering the securities, in violation of state law.
TradeStation has repaid investors, including interest and earnings.
The settlement stems from a comprehensive investigation led by State Securities Regulators and coordinated through the North American Securities Administrator’s Association Enforcement Section Committee.
