Part 3/11:
McDonald deposited the check on June 30 but was told a week later that it wasn't available because the insurer lacked the necessary funds. When she contacted her bank—Chase—it revealed that State Farm’s account had a negative balance. Despite reassurances from State Farm representatives that the issue would be resolved, a follow-up indicated it might finally clear, leaving her in limbo during a critical recovery period.
This incident is extraordinary. McDonald, an expert in insurance defense, emphasized she had never experienced a bounced check or similar issue in her two-decade career. The situation reflects a deeper concern: could the insurer be experiencing insolvency or severe liquidity problems?