One individual who recently contacted my office would be forced to pay over $5,000 out-of-pocket as a result of State Farm’s decision. Your company has decided - despite requests from me, insureds and the Connecticut Insurance Commissioner - to keep the hurricane deductible in place even though the storm was downgraded to a tropical storm before reaching Connecticut. Regrettably, State Farm was not one of those companies.
This unprecedented, wide-spread industry action was commendable, demonstrating a commitment to the people of Connecticut. Cleaning up after Irene and repairing the damage is emotionally devastating and financially draining. In response to this concern, sixty-four insurance companies decided to either waive the hurricane deductible on their property casualty policy or to not apply the higher level of deductible because the storm did not qualify as a hurricane. State Farm is the largest insurance company not to waive the deductible and continues to apply the charge to claims it received because the storm was downgraded less than twenty-four hours before causing damage in Connecticut.Īs you know, Tropical Storm Irene caused significant damage to houses, personal property, and businesses throughout Connecticut. Many people lost homes that were in their families for generations. In a letter to Edward Rush, Chairman and CEO of State Farm Insurance, Blumenthal wrote, “Your company has decided - despite requests from me, insureds, and the Connecticut Insurance Commissioner - to keep the hurricane deductible in place even though the storm was downgraded to a tropical storm before reaching Connecticut…Particularly in these difficult economic times, this is a significant sum of money who is trying to rebuild in the wake of a devastating storm.”Īfter Tropical Storm Irene, sixty-four insurance companies decided to either waive the hurricane deductible or did not apply it because Irene was downgraded to a tropical storm. Blumenthal was joined at the press conference by Elizabeth Wachsler, a resident from Bridgeport who sustained extensive damage to the lower level of her house. State Farm has only agreed to cover the damage if she first pays approximately $10,000 in a hurricane deductible. During Rust’s 30 years leading the company, State Farm saw an eightfold increase in equity, standing at approximately $80 billion with more than 82 million insurance policies and financial accounts.(Hartford, CT) – Senator Richard Blumenthal today called on State Farm Insurance to drop their hurricane deductible for victims whose homes were damaged by Tropical Storm Irene. This philosophy served him well as his tenure became the longest in the history of State Farm. He believed the strength of the company depended on developing a reliable team of employees. While some had been in favor of looking outside the company to a more experienced candidate, once in office Rust proved his abilities and was named chairman of the board in 1987. He was appointed vice president in 1981 and in 1983 was appointed executive vice president and chief operation officer and named a director.Īt the young age of 35, Rust was appointed chief executive officer of State Farm after his father’s passing in office.
From there he moved on to marketing and sales within the company before eventually moving into general management. He joined State Farm as a management trainee in 1975 at the company’s Dallas, Texas, regional office before moving to Bloomington, IL to become an attorney in the State Farm corporate law department.
Rust had interest in State Farm Insurance Company from a young age as both his grandfather and father had served as CEO. A graduate of Illinois Wesleyan, Rust holds both juris doctor and master of business degrees from Southern Methodist University.