Wednesday, August 21, 2013

State Farm and ALEC

I have been a policyholder with State Farm for auto, life, and homeowners insurance since the day I started driving. My parents were State Farm policyholders. Even when I was in the Navy, and could have had a better deal with USAA or other companies, I stuck with State Farm because of reasonable rates and good service. I have never had an issue with a claim or other matter with State Farm agents over the years.

Recently I learned that State Farm is a corporate sponsor of the American Legislative Exchange Council (ALEC). I sent an email to my local agent expressing concern. He passed that up the chain, and forwarded me the following response:

The American Legislative Exchange Council (ALEC) is a nonpartisan forum of conservative state legislators and private enterprise interests who work together to develop model state legislation for a variety of subject matters. The organization has a commitment to limited government and free markets. More than 400 companies participate in ALEC. As a state-based regulated enterprise, State Farm began participating in ALEC many years ago to effectively ensure our voice was heard on insurance-related legislative issues with the potential to affect the interests of our policyholders.
State Farm customers, agents and employees come from all walks of life and represent diverse political views. We "participate" in many organizations representing varied viewpoints – to hear, firsthand, what legislation or regulation may be on the horizon, and then – to have our viewpoint heard. The organizations in which we participate run the gamut of the political spectrum. We participate, but do not support all of the positions or policies adopted by these organizations.
  • State Farm’s participation in ALEC is focused on insurance and related matters. We have had no involvement in other ALEC matters, including the development of model laws like “Stand Your Ground.”
  • It is our understanding the ALEC Public Safety and Elections Task Force that worked on the "Stand Your Ground" Act disbanded some time ago.
  • We are told the organization's legislators are focusing on the core mission of economic and job development and free market support – a decision State Farm supports.

Note in the above response all the non-specific weasel-like language in the above. The disclaimer that "We have had no involvement in other ALEC matters" is bullshit, as financial support for ALEC is de facto support for the ALEC agenda in its entirety. Phrases like "it is our understanding" and "we are told" are State Farm's attempt to deflect attention from ALEC's real agenda.

I have given my State Farm agent (an independent contractor as all State Farm agents are) a chance to convince the parent company to disassociate from ALEC before I pursue other insurance options.


  1. Well said. Thanks for the cross post.

  2. I shall join you in this endeavor, being in a quite similar position myself.