AUSTIN, TX – March 6, 2015 – (RealEstateRama) — On the heels of last week’s multi-million dollar refund agreement with the state’s largest homeowners insurer, Texas Department of Insurance Commissioner David Mattax announced today 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.
“This is a significant step toward returning funds to deserving Farmers customers,” said Commissioner Mattax, noting a settlement the previous week 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.
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The Texas Department of Insurance (TDI) is consumer protection agency that regulates the world’s 10th largest insurance marketplace. In 2014, TDI received more than 563,000 calls from consumers, helped recover over $32.3 million in claims and premiums, and prosecuted fraud cases to recover $221,000 in fines and restitution. For more information, visit the TDI web site at www.tdi.texas.gov or call the Consumer Helpline at: 1-800-252-3439