Hawley Grills All State CEO: ‘You Haven’t Changed a Lick; We’ve Got Your Word Against Everybody Else’s’

HAWLEY Let s take ░░░░░░░░ little trip down memory ░░░░░░░░ As early as 1998 ░░░░░░░░ State was sued because ░░░░░░░░ had multiple times reported ░░░░░░░░ to policies This is ░░░░░░░░ far back as the ░░░░░░░░ earthquake All State was ░░░░░░░░ because reports have been ░░░░░░░░ to indicate the damage ░░░░░░░░ unrelated to the earthquake ░░░░░░░░ thus not reimbursable by ░░░░░░░░ homeowners policy That was ░░░░░░░░ 1998 Or how about ░░░░░░░░ Katrina in 2007 In ░░░░░░░░ a federal grand jury ░░░░░░░░ that All State had ░░░░░░░░ adjustment and engineering reports ░░░░░░░░ defraud homeowners and the ░░░░░░░░ government Exact same thing ░░░░░░░░ these gentlemen testified to ░░░░░░░░ today They also found ░░░░░░░░ judge also found that ░░░░░░░░ State had paid 3 ░░░░░░░░ 2 8 to be ░░░░░░░░ to hire a forensic ░░░░░░░░ that falsified engineering reports ░░░░░░░░ same type of behavior ░░░░░░░░ these gentlemen testify to ░░░░░░░░ Then there was Superstorm ░░░░░░░░ where All State was ░░░░░░░░ of engaging in widespread ░░░░░░░░ of engineering reports to ░░░░░░░░ insurers I mean it ░░░░░░░░ goes on and on ░░░░░░░░ on What s amazing ░░░░░░░░ it s exactly what ░░░░░░░░ two gentlemen said is ░░░░░░░░ happening in your company ░░░░░░░░ your testimony is that ░░░░░░░░ of this ever happened ░░░░░░░░ My testimony is that ░░░░░░░░ wasn t involved with ░░░░░░░░ HAWLEY Yeah but you ░░░░░░░░ responsible for it now ░░░░░░░░ you re here before ░░░░░░░░ committee FIATO Correct HAWLEY ░░░░░░░░ this happened You acknowledge ░░░░░░░░ this has been a ░░░░░░░░ and practice of your ░░░░░░░░ since the 90s FIATO ░░░░░░░░ s not a pattern ░░░░░░░░ practice today HAWLEY What ░░░░░░░░ changed it You re ░░░░░░░░ you rooted this out ░░░░░░░░ some point FIATO That ░░░░░░░░ not the way we ░░░░░░░░ claims HAWLEY It has ░░░░░░░░ the way you ve ░░░░░░░░ claims historically We ve ░░░░░░░░ it from the 90s ░░░░░░░░ the 2000s and then ░░░░░░░░ had today two additional ░░░░░░░░ here under oath and ░░░░░░░░ have multiple whistleblowers and ░░░░░░░░ testimony who say it ░░░░░░░░ exactly the same thing ░░░░░░░░ haven t changed a ░░░░░░░░ We ve got your ░░░░░░░░ against everybody else s ░░░░░░░░ should we believe you ░░░░░░░░ Because I m telling ░░░░░░░░ truth senator HAWLEY Laughs ░░░░░░░░ Right Just like you ░░░░░░░░ to Ms Miguel right ░░░░░░░░ it s really extraordinary ░░░░░░░░ re asking us to ░░░░░░░░ at all the evidence ░░░░░░░░ don t believe our ░░░░░░░░ eyes right I mean ░░░░░░░░ ignore the fact that ░░░░░░░░ company has over and ░░░░░░░░ and over again been ░░░░░░░░ lost lawsuits paid out ░░░░░░░░ dollar verdicts all for ░░░░░░░░ exact same thing_ falsifying ░░░░░░░░ interfering with adjusters reports ░░░░░░░░ firms to send in ░░░░░░░░ estimates all to pad ░░░░░░░░ profits And you re ░░░░░░░░ sitting here saying it ░░░░░░░░ it never happens don ░░░░░░░░ believe it It s ░░░░░░░░ alternate reality isn t ░░░░░░░░ FIATO I don t ░░░░░░░░ so No HAWLEY On ░░░░░░░░ basis What world do ░░░░░░░░ live in FIATO On ░░░░░░░░ basis that I lead ░░░░░░░░ organization every day HAWLEY ░░░░░░░░ which means you re ░░░░░░░░ for it which is ░░░░░░░░ I can t believe ░░░░░░░░ wouldn t come in ░░░░░░░░ and take responsibility for ░░░░░░░░ your company is doing ░░░░░░░░ can t believe you ░░░░░░░░ t turn around and ░░░░░░░░ to Ms Miguel We ░░░░░░░░ make this right no ░░░░░░░░ what And I can ░░░░░░░░ believe you won t ░░░░░░░░ responsibility for the fact ░░░░░░░░ your company as we ░░░░░░░░ heard from sworn testimony ░░░░░░░░ continuing to engage in ░░░░░░░░ behavior continuing to engage ░░░░░░░░ this behavior and now ░░░░░░░░ also engaging in retaliation ░░░░░░░░ s a pattern and ░░░░░░░░ if I ve ever ░░░░░░░░ one Mr Fiato It ░░░░░░░░ unbelievable Do you have ░░░░░░░░ else you d like ░░░░░░░░ say in defense of ░░░░░░░░ State FIATO It s ░░░░░░░░ our pattern of practice ░░░░░░░░ We ve just seen ░░░░░░░░ record and it is ░░░░░░░░ a fraudulent behavior to ░░░░░░░░ your policyholders rip off ░░░░░░░░ public rip off the ░░░░░░░░ government too by the ░░░░░░░░ which you did multiple ░░░░░░░░ in past years when ░░░░░░░░ moved over funding and ░░░░░░░░ to the federal governments ░░░░░░░░ FEMA would have to ░░░░░░░░ more the taxpayer would ░░░░░░░░ to pay more and ░░░░░░░░ would have to pay ░░░░░░░░ And I have to ░░░░░░░░ you it worked great ░░░░░░░░ you I mean your ░░░░░░░░ are unbelievable What do ░░░░░░░░ make FIATO I d ░░░░░░░░ happy to discuss that ░░░░░░░░ the hearing HAWLEY You ░░░░░░░░ tell us I mean ░░░░░░░░ do you make a ░░░░░░░░ Your CEO makes 26 ░░░░░░░░ a year What do ░░░░░░░░ make FIATO I m ░░░░░░░░ comfortable discussing that in ░░░░░░░░ forum HAWLEY Why not ░░░░░░░░ mean I wouldn t ░░░░░░░░ comfortable either if I ░░░░░░░░ a company like this ░░░░░░░░ won t tell us ░░░░░░░░ I won t I ░░░░░░░░ t HAWLEY It s ░░░░░░░░ It s amazing Well ░░░░░░░░ Fiato all I can ░░░░░░░░ is I think your ░░░░░░░░ here today is pretty ░░░░░░░░ Just like I think ░░░░░░░░ company s behavior is ░░░░░░░░ shameful.”