Texas, Farmers Insurance settle score
|December 3, 2002|
Homeowners get $100 million in lawsuit agreement
Inman News Features
The Texas Department of Insurance and the Office of Attorney General reached an agreement Saturday with Farmers Insurance Group that will end the lawsuit and administrative enforcement actions that were initiated against the company in August.
As a result of the agreement, homeowners will receive $100 million in combined savings and restitution and Farmers Insurance will continue selling homeowners insurance policies in Texas, according to the Texas Department of Insurance.
In August, Texas Attorney General John Cornyn filed a lawsuit against Farmers Insurance Group for violations of the Deceptive Trade Practices Act and discrimination against some groups of homeowners.
The Texas Department of Insurance also issued two enforcement actions against the company, including a cease and desist order, which forced Farmers Insurance to halt certain pricing practices deemed to be unfair to consumers.
A temporary standstill agreement was negotiated last month that allowed Farmers to continue doing business in Texas until Dec. 10 while negotiations continued.
The agreement is the largest property and casualty insurance settlement in the history of Texas, according to the Texas Department of Insurance.
Copyright: Inman News Service