Incident 425: State Farm Allegedly Discriminated against Black Customers in Claim Payout
Description: State Farm's automated claims processing method was alleged in a class action lawsuit to have disproportionately against Black policyholders when paying out insurance claims.
Entities
View all entitiesAlleged: State Farm developed and deployed an AI system, which harmed Black State Farm customers.
Incident Stats
Incident ID
425
Report Count
2
Incident Date
2021-06-12
Editors
Khoa Lam
Incident Reports
Reports Timeline
nytimes.com · 2022
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Jacqueline Huskey, a Black woman living in suburban Illinois, tried more than a dozen times to get help from State Farm after a hailstorm punched holes in her roof. Now, thanks to a broad study of how the insurer handles claims like hers, s…
courthousenews.com · 2022
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CHICAGO (CN) — Black home insurance policyholders brought a federal class action against State Farm on Wednesday morning, alleging the multibillion-dollar company subjects their claims to greater scrutiny than it does those of white clients…
Variants
A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.