State Farm could owe $50 billion to California policyholders

State Farm could owe $50 billion to California policyholders: "Branson West, MO. Oct 25,2002 - Wendy L. Gramm is the wife of Texas Senator Phil Gramm, (R-Tex). Sen. Gramm fathered the Gramm, Leach, Bliley Financial Modernization Act of 1999 that allowed banks to go into the insurance business and insurance companies to go into the banking business.

Mrs. Gramm was given a position on the Board of Directors of State Farm Mutual Auto Insurance Company where she served from 1994 until March, 2002. During approximately the same period of time Mrs. Gramm was also on the Board of Directors of Enron.

While on the State Farm board, Mrs. Gramm was charged with the responsibility of overseeing State Farm's internal audit activities. While on the Enron Board, Mrs. Gramm was charged with the same responsibility.

State Farm is a mutual insurance company. This means that each policyholder is a part owner of the company. When the premiums State Farm collects is greater than what is necessary to cover policyholder claims, operating expenses and appropriate reserves to cover foreseeable and unforeseeable catastrophic losses, the excess funds (premium overcharges) are to be returned to State Farm policyholders."