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Tuesday, 26 November 2013 01:04

$117.5 Million Settlement Pending Between Farmers Ins. and State of Texas over Illegally Reduced Coverage

Hundreds of thousands of Texas homeowners may be poised to share a $117.5 million settlement between the state and Farmers Insurance, more than a decade after the company first clashed with regulators in court over its rates.

Under the agreement, the company would issue refunds or premium reductions to current and former customers. It would also get credit for past premium cuts. The total would be one of the largest insurance settlements in state history.

Farmers admits no wrongdoing in the proposed settlement, which a judge is set to review in January, 2014. The Insurance Department had accused the company of illegally reducing coverage in its homeowner policies and charging customers too much. Refunds and credits would be issued 30 days after the court approves the agreement. It would cover Texans who had homeowner policies with Farmers between 2000 and 2003.

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