State Farm: Difference between revisions
| Line 151: | Line 151: | ||
===Services=== |
===Services=== |
||
State Farm Safety Patrol - State Farm, in partnership with several U.S. highway authorities, operates a service called the State Farm Safety Patrol which provides free roadside assistance to stranded motorists on participating highways, when you call the designated telephone number for the Safety Patrol they will respond and provide the following services: fuel refills; radiator refills; engine oil refills. Safety Patrol personnel are also CPR and Automated External Defibrillator certified. They work to reduce accident rates, minimize the duration time of incidents, assist disabled drivers and remove [[road debris]]. Highways which currently participate includes |
State Farm Safety Patrol - State Farm, in partnership with several U.S. highway authorities, operates a service called the State Farm Safety Patrol which provides free roadside assistance to stranded motorists on participating highways, when you call the designated telephone number for the Safety Patrol they will respond and provide the following services: fuel refills; radiator refills; engine oil refills. Most Safety Patrol personnel are also CPR and Automated External Defibrillator certified. They work to reduce accident rates, minimize the duration time of incidents, assist disabled drivers and remove [[road debris]]. Highways which currently participate includes, [[Florida's Turnpike]] in the State of [[Florida]]<ref>[http://www.floridasturnpike.com/tools_safetypatrol.cfm State Farm Safety Patrol on Florida's Turnpike and the Sawgrass Expressway official website]</ref> and the [[Pennsylvania Turnpike]] in the Commonwealth of [[Pennsylvania]].<ref>[http://www.paturnpike.com/tools/statefarm/info.html State Farm Safety Patrol on the Pennsylvania Turnpike official website]</ref> |
||
State Farm also sponsors similar patrols provided by the Departments of Transportation in Georgia, New York, New Jersey, Maryland, and Indiana. |
|||
| ⚫ | |||
| ⚫ | |||
Youth Advisory Board - The State Farm Youth Advisory Board, composed of thirty students from across the United States and Canada, helps the company design and implement their largest service-learning initiative, which is targeted at addressing issues important to State Farm and communities across the United States and Canada. Every year, the Board is granted $5 million to distribute to local community projects across the United States and Canada. |
Youth Advisory Board - The State Farm Youth Advisory Board, composed of thirty students from across the United States and Canada, helps the company design and implement their largest service-learning initiative, which is targeted at addressing issues important to State Farm and communities across the United States and Canada. Every year, the Board is granted $5 million to distribute to local community projects across the United States and Canada. |
||
Revision as of 19:57, 15 June 2012
| File:New State Farm Logo.png | |
| Company type | Mutual (main company) |
|---|---|
| Industry | Finance and Insurance |
| Founded | June 7, 1922[1] |
| Founder | George J. Mecherle |
| Headquarters | , U.S. |
Number of locations | 17,700 agents 343 claim offices 30 operations centers[2] |
Area served | USA and Canada |
Key people | Edward B. Rust, Jr. (Chairman/CEO) |
| Services | Insurance, Banking, Investing |
| Revenue | US$61.611 billion (2007)  1.8%[3] |
| US$3.664 billion (2007) US$687 million[4] | |
| Total assets | US$104.842 billion (2007) US$6.494 billion[4] |
| Total equity | US$58.142 billion (2006)[5] |
Number of employees | 66,000[2] |
| Divisions | Insurance; mutual funds; State Farm Bank |
| Subsidiaries | see Companies below |
| Website | www.statefarm.com |
 | This article needs attention from an expert on the subject. Please add a reason or a talk parameter to this template to explain the issue with the article. (September 2010) |
State Farm Insurance is a group of insurance and financial services companies in the United States. The company also has operations in Canada.
The group's main business is State Farm Mutual Automobile Insurance Company, a mutual insurance firm that also owns the other State Farm companies. The corporate headquarters are in Bloomington, Illinois.
State Farm is ranked 37th in the 2011 Fortune 500, which lists American companies by revenue.[6] According to the Fortune Global 500, State Farm is also the world's largest mutual "P&C" (property & casualty insurance) firm.[5]
History
State Farm was founded in 1922 by retired farmer George J. Mecherle as a mutual automobile insurance company owned by its policyholders. The firm originally specialized in auto insurance for farmers. The company later expanded its services into other types of insurance, such as homeowners and life insurance, in addition to banking and financial services.
State Farm's jingle ("Like a good neighbor, State Farm is there") was written by American songwriter Barry Manilow in 1971. A cover was released by Weezer in 2011.[7][8]
As of December 2008 State Farm had 67,000 employees and 17,000 agents. March 2009 figures show the group servicing 77 million policies in the United States and Canada, of which over 40,000,000 are for automobiles, and more than 2 million bank accounts.[2]
Edward B. Rust, Jr. is the current chairman and CEO of State Farm Mutual Automobile Insurance Company,[2] as well as president and chief executive officer of State Farm Fire and Casualty Company, State Farm Life Insurance Company, and other principal State Farm affiliates.[citation needed]
On March 1, 2007, State Farm Mutual Automobile Insurance Company announced it will pay $1.25 billion in dividends to its mutual auto insurance policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick.[9]
Logo
State Farm's interlocked tri-oval logo was first created in the mid-to-late 1940s and was later updated in 1953.
On December 15, 2011, State Farm updated its tri-oval logo.[10]
Companies
State Farm Mutual Automobile Insurance Company is the parent company of several wholly owned State Farm subsidiaries:[1]
- State Farm Fire and Casualty Company
- State Farm Life Insurance Company
- State Farm Life and Accident Assurance Company (NY/CT/WI)
- State Farm County Mutual Insurance Company of Texas (TX auto)
- State Farm Mutual Insurance Company of Texas (TX preferred auto)
- State Farm Indemnity Company / State Farm Guaranty Insurance Company (NJ auto)
- State Farm General Insurance Company (CA home)
- State Farm Florida Insurance Company (FL home)
- State Farm Lloyds (TX home/commercial)
- State Farm Bank, F.S.B.
- State Farm Investment Management Corp. (SFIMC)
- State Farm VP Management Corp. (SFVPMC)
![[icon]](/enwiki/wiki/File:Wiki_letter_w_cropped.svg){kind=small} | This section needs expansion. You can help by adding to it. (June 2008) |
CEOs
| CEO | Years Served |
|---|---|
| George J. Mecherle | 1922–1937 |
| Raymond Mecherle | 1937–1954 |
| Adlai Rust | 1954–1970 |
| Edward B. Rust, Sr. | 1970–1985 |
| Edward B. Rust, Jr. | 1985–Present |
Financial services
State Farm has expanded into the financial services arena, such as banking and mutual funds. The bank opened in May 1999 and is operated by State Farm Financial Services, FSB, a subsidiary of State Farm Mutual Automobile Insurance Co. These are separate from its insurance products. State Farm Bank does not have branch offices. Its regular banking services, which include checking and savings accounts, certificates of deposit, and money market accounts, are available to consumers countrywide via the Internet or over the phone, and through agents in Arizona, Illinois, Missouri, Nevada, or New Mexico. Home mortgages are available countrywide over the phone or through agents in those five states.[11]
Back in the 1950's, State Farm held a contest, among the agents, to come up with ideas to expand State Farm's business. Robert H Kent, agent in Chicago, came up with the idea of providing auto loans to existing policyholders. Robert H Kent was friends with a local bank president at LaSalle NW, and the two teamed up to pilot the auto finance program. State Farm liked the idea so much, that it was rolled out to all the agents. Robert H Kent received royalties on the program for 20 years. This is a significant event, as it created the first marketing patnership between insurance companies and banks.
Florida withdrawal and reentry
| This section needs expansion. You can help by adding to it. (March 2009) |
In early 2009, State Farm's Florida subsidiary, the state's largest insurer, threatened to withdraw from writing property insurance business in Florida after state regulators refused to approve a 47% property rate increase. State Farm said that, in Florida, it had paid out $1.21 in claims for every dollar in premiums since 2000. Several other home insurers have pulled out of Florida as well; many homeowners are now using the Citizens Property Insurance Corporation run by the state government.[12] State Farm has since decided to remain in Florida, although with a reduced amount of property policies.[citation needed]
In 2010 State Farm and Renaissance jointly formed DaVinci Reinsurance Ltd. which insured more than 3.5 million homes in 2010.[13]
Criticism
A 2007 investigation by CNN reported that major car insurance companies, including State Farm and Allstate Insurance, are increasingly fighting claims from those injured by their insured members. In some cases, the settlement proposed amounts to just $50 or the threat that any lawsuit would be made so expensive and time-consuming that it would not be worth the victim's time. State Farm and Allstate have denied these allegations.[14] This followed on the heels of criminal investigations by the states of Louisiana and Mississippi, which found that State Farm had wrongly denied claims stemming from Hurricane Katrina.[15] Richard F "Dickie" Scruggs pleaded guilty in March for his role in trying to pay Judge Henry Lackey of Mississippi a $50,000 bribe for a favorable ruling in a dispute involving a $26.5 million settlement after Hurricane Katrina.[16]
Competition
State Farm's top automobile insurance competitors, based on premium written, include Allstate, Progressive, GEICO, Zurich Financial Services, Nationwide, USAA, Liberty Mutual, American International Group, and American Family Insurance Group.[17]
Non-insurance-related
Sponsorships
- State Farm Arena, a multi-purpose complex that features concerts and sports events.
- State Farm Classic, a golf tournament for professional female golfers that is part of the LPGA Tour.
- State Farm Holiday Classic, an annual high school holiday basketball tournament held in Bloomington-Normal, Illinois each December.
- State Farm Hall of Business, College of Business Building at Illinois State University in Normal, Illinois, since 2010.
- State Farm Lone Star Showdown, moniker for all varsity athletics competitions between Texas A&M University and The University of Texas at Austin.
- State Farm Research Center, a research extension of State Farm Insurance located at the University of Illinois at Urbana-Champaign.
- State Farm Territorial Cup Series, moniker for all varsity athletics competitions between the University of Arizona and Arizona State University.
- State Farm Sales Lab, a clinical sales training center at the University of Central Missouri, where the national State Farm Marketing and Sales Competition is held.
Services
State Farm Safety Patrol - State Farm, in partnership with several U.S. highway authorities, operates a service called the State Farm Safety Patrol which provides free roadside assistance to stranded motorists on participating highways, when you call the designated telephone number for the Safety Patrol they will respond and provide the following services: fuel refills; radiator refills; engine oil refills. Most Safety Patrol personnel are also CPR and Automated External Defibrillator certified. They work to reduce accident rates, minimize the duration time of incidents, assist disabled drivers and remove road debris. Highways which currently participate includes, Florida's Turnpike in the State of Florida[18] and the Pennsylvania Turnpike in the Commonwealth of Pennsylvania.[19]
State Farm also sponsors similar patrols provided by the Departments of Transportation in Georgia, New York, New Jersey, Maryland, and Indiana.
Road Rangers - State Farm and Florida Department of Transportation Road Rangers patrol I-95, I-595, and I-75 in Broward and Palm Beach counties, I-4 in Orlando, and the Selmon Expressway in Tampa.
Youth Advisory Board - The State Farm Youth Advisory Board, composed of thirty students from across the United States and Canada, helps the company design and implement their largest service-learning initiative, which is targeted at addressing issues important to State Farm and communities across the United States and Canada. Every year, the Board is granted $5 million to distribute to local community projects across the United States and Canada.
See also
{{{inline}}}
References
- ^ a b "State Farm Companies". State Farm Mutual Automobile Insurance Company. Retrieved 2008-05-28.
- ^ a b c d "Fast facts about State Farm". State Farm Mutual Automobile Insurance Company. Retrieved 2008-05-28.
- ^ "State Farm Insurance Cos". Fortune 500, 2008. 2008-05-05. Retrieved 2008-04-24. (Note: Based on 2006 accounting figures.)
- ^ a b "2007 Annual Report to State Farm Mutual Policyholders" (PDF). State Farm Mutual Automobile Insurance Company. 2008-03-04. Retrieved 2008-03-27.
- ^ a b "State Farm Insurance Cos". Fortune Global 500, 2007. 2007-07-23. Retrieved 2007-03-27. (Note: Based on 2006 accounting figures.)
- ^ "Fortune 500 2009: Top 1000 American Companies". CNN. Retrieved 2010-05-24.
- ^ State Farm – 1960s & 1970s
- ^ Weezer cover of State Farm jingle
- ^ State Farm Announces $1.25 Billion Mutual Auto Policyholder Dividend
- ^ State Farm Contemporizes Its Brand Logo
- ^ "Insure- State Farm Loans". Insure.com. Retrieved 2011-02-28.
- ^ "Florida's Unnatural Disaster: Charlie Crist, taxpayers and the next hurricane". The Wall Street Journal. 2009-02-04. Retrieved 2009-03-29.
- ^ Reed, Matt (3 March 2011). "Insurers still like Florida". Florida Today. Melbourne, Florida. pp. 1B.
- ^ "Auto insurers play hardball in minor-crash claims - CNN.com". CNN. Retrieved 2010-05-24.
- ^ Federal judge rejects $50M State Farm settlement
- ^ Class-Action Lawyer Gets 5 Years in Bribery Case
- ^ http://www.iii.org/media/facts/statsbyissue/auto/
- ^ State Farm Safety Patrol on Florida's Turnpike and the Sawgrass Expressway official website
- ^ State Farm Safety Patrol on the Pennsylvania Turnpike official website
External links
- State Farm — main official website
- State Farm Bank — official website
- State Farm's Youth Advisory Board — official website
- State Farm Canada
- State Farm's University of Illinois Research Center
- Articles needing expert attention from September 2010
- Companies established in 1922
- Banks based in Illinois
- Financial services companies of the United States
- Insurance companies of the United States
- Insurance companies of Canada
- Mutual insurance companies
- Companies based in Bloomington-Normal, Illinois
- Insurance companies based in Illinois
- Life insurance companies
- Mutual fund families