Farmers Insurance Taking Advantage Of Policy Holders

Insurance lawyers in the DFW area need to stay on top of the insurance news in Texas. One good resource for keeping informed is the Insurance Journal. The Insurance Journal published an article in March of 2015 and another related article in July of 2015.
The first article tells us that on the heels of a recent multi-million dollar refund agreement with the state’s largest homeowners insurer, the Texas Department of Insurance announced a revised settlement with the second largest homeowners insurer, Farmers Insurance, stemming from a 2002 lawsuit by the state against Farmers.
The settlement now goes before a Travis County District Court for approval.
The settlement, which amends a prior agreement, will enhance benefits to Farmers policyholders who fall within the settlement class.
As part of the settlement in 2002, Farmers provided a 6.8 percent homeowners rate reduction that has already been received by its policyholders. An additional $74.38 million in refunds has been increased by $10 million to account for the passage of time.
Under the terms of the agreement, eligible Farmers policyholders will receive a total of $84.38 million in refunds.
Representatives of the Texas Department of Insurance said this is a significant step toward returning funds to deserving Farmers customers.
They also noted the recent settlement with State Farm Lloyds totaling $352.5 million in refunds. Taken together, the two settlements provide for almost $437 million in refunds to certain Texas insurance consumers.
The July 2015, article said a Travis County, Texas district court has granted preliminary approval of a settlement with Farmers Insurance Group that will return $84.4 million to policyholders stemming from a 2002 homeowners insurance rate case.
The case stems from a 2002 lawsuit by the state against Farmers.
The settlement will enhance benefits to Farmers policyholders who fall within the settlement class. As part of the settlement in 2002, Farmers provided a 6.8 percent homeowners rate reduction that has already been received by its policyholders. An additional $74.38 million in refunds has been increased by $10 million to account for the passage of time.
Under the terms of the agreement, eligible Farmers policyholders will receive a total of $84.38 million in refunds.
These refunds, combined with the rate reductions Farmers agreed to in 2002, are excellent news for consumers.
The Texas Department of Insurance noted that the court’s original approval of the settlement in 2003 described the agreement as “an extraordinarily high percentage of recovery on the claims that were asserted.” The amended version adds an additional $10 million for consumers to account for the delays while the settlement was challenged in court.
Notices about the settlement will be mailed within 60 days to people who may be eligible for a refund.