Thursday, 16 July 2015 16:48

TX Attorney General and Insurance Commissioner Reach $84M Settlement with Farmers Insurance

Texas Attorney General Ken Paxton announced on July 6 the approval of a settlement with Farmers Insurance Group that will return $84.4 million to policyholders stemming from a 2002 case filed by the Texas Attorney General’s Office and the Texas Department of Insurance.

“People in Texas and across the country need to have confidence in the companies they depend on to insure their homes, health and property,” said Attorney General Paxton. “Any company that overcharges and deceives its customers out of their hard-earned money must be held accountable, and I’m pleased that Texas consumers will finally have closure in this case.”

In 2002, the Texas Attorney General’s Office filed a lawsuit against Farmers Insurance Group for violations to the Texas Deceptive Practices Act (DTPA), and on behalf of the Texas Department of Insurance, for violations to the Texas Insurance Code. According to state investigators, for a period of five years Farmers deceived consumers and engaged in discriminatory practices. Unlawful practices that in some cases had consumers paying excessive amounts for premiums while having their coverage reduced without their knowledge.

Under today’s court order, a settlement administrator has been assigned to handle restitution to consumers. Notices about the settlement will be mailed within 60 days to people who may be eligible for a refund.

To obtain a copy of the settlement and information for affected consumers, click here: https://www.texasattorneygeneral.gov/files/epress/files/2015/Preliminary_Approval_Order.pdf

To access the legal notice of agreement: https://www.texasattorneygeneral.gov/files/epress/files/2015/SF-Final.pdf

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