Farmers was by no means the only insurance company systematically denying claims. Some of the nation's biggest insurance companies -- Allstate, AIG, and State Farm among others -- have earning reputations as aggressive claim fighters in an attempt to boost their bottom lines. Allstate gave employees who denied valid claims rewards such as portable fridges, and used a "boxing gloves" approach to policyholders who refused to accept lowball offers. When AIG units lost money, former CEO Maurice Greenberg would put in place new teams of staff to systematically reject thousands of valid claims. State Farm went so far as to engage in fraud to deny claims. After the 1994 Northridge earthquake in California, which killed 57 people, injured 9,000, and caused an estimated $33.8 billion in damage, company officials forged signatures on waivers of earthquake coverage to avoid paying quake-related claims.
Ethel Adams eventually prevailed after Farmers' denial sparked an outcry and intervention from the state insurance commissioner. However, for many others whose valid claims have been denied there is no such luck.
