Q: Overview. We use State Farm for auto insurance. Got into car accident. State Farm determined car to be a total loss.
State Farm determined value of car. A State Farm claim rep called me and send they are emailing documents that need signatures (limited POA). I have not signed any documents yet. Despite this, the State Farm claim rep has already paid the financier (lien holder) without our knowledge. Irregardless if the lien holder needs to be paid first to pay off the loan, and then we receive the rest of what the car is worth, is it legal for State Farm to unilaterally decide to reach out to the financier and send them a check without receiving permission to do so from the insured. Without the knowledge of the insured. the State Farm claim rep claims that when she called me and told me that she will be sending over a power of attorney authorization and I said okay to her sending the documents, that this itself authorized her to act on my, the insured’s behalf, and move forward with reaching out car max, the lien holder, and sending them a payout for the value of the loan
A: She should not take any actions on your behalf without your consent. It is not clear to me if this was a single car accident or if someone else was involved? But that can also have implications.
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