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Farmers Cheats Policyholders |By Computer, Class Action Claims

LOS ANGELES (CN) - Farmers Group, its subsidiary Truck Insurance Exchange and Xactware conspired to cheat policyholders by using "Xactimate" software that undervalues property damages and replacement costs, a class-action complaint claims in Superior Court.Plaintiffs claim that Farmers knows the computer program, which includes prices on about 10,000 items,cheats policyholders, but "uses and pays claims based on the estimates prepared by Xactimate" anyway.

Named plaintiffs Michael and Denise Maguire claim Xactware's subsidiary, Xactnet, automatically audits all claims submissions and flags any items that do not match its estimates. They claim Farmers pressures its claims adjusters to use the Xactimate estimates.

The class of California policyholders claims the defendants conspired to fix prices, breached contract, breached faith and do business unfairly. They are represented by Kabateck Brown Kellner.

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