State Farm could owe $50 billion to California policyholders

State Farm could owe $50 billion to California policyholders: "State Farm's internal audit department, by and through Mrs. Gramm, is charged, among other things, with seeing to it that the rights of State Farm policyholders are protected and that appropriate premium overcharges are refunded. These duties are just like those of the Enron internal audit department. Simply replace the word 'Policyholder' with the word 'Stockholder', and the words 'Premium Refunds' with the word 'Dividends' and you have a parallel correlation.

It now appears that Enron's 'creative accounting' motives have been embraced by State Farm.

State Farm had been withholding approximately $12.6 Billion of premium overcharge refunds from its policyholders; this figure was projected in a story addressing property and casualty insurance issues, released in November, 1999 by the Insurance Consumer Advocate Network (iCan), a web-based consumer advocacy effort (www.iCan2000.com). At that time, iCan calculated State Farm owed each of its 50 million policyholders a premium refund of $252.00."