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Insurer stretches cease and desist

November 12, 2002

Farmers Insurance continues to offer insurance while final resolution worked out

Inman News Features

The Farmers Insurance Group of Companies will immediately begin offering homeowner's policies to its existing customers whose policies were scheduled to renew through Dec. 10.

Farmers VP and Texas executive director John Hageman said the 30-day extension of the cease and desist order announced two months ago allows the company to continue to offer insurance to its customers while it works out differences with the Texas Governor's office, the Texas Department of Insurance and the Office of Attorney General.

In September, Farmers announced it would not renew 700,000 homeowner's insurance policies beginning in November and would no longer sell any homeowner's insurance policies in Texas. The company previously announced it would halt the sale of new homeowner's insurance policies in the state at the end of October.

Farmers also announced that for policies effective Nov. 11, its homeowner's rates in Texas would drop by an average of 6.8 percent throughout the state, according to Hageman.

Farmers Insurance Group is headquartered in Los Angeles. The insurer conducts business in 41 states.

Copyright: Inman News Service

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