Farmers Agrees to Pay $84 Million to Settle Texas Claims
The settlement involves the state's claims that Farmers violated the Texas Practices Act and the Texas Insurance Code.
The amount is in addition to a 6.8 percent reduction in homeowners rates that was implemented earlier, resulting in a total settlement of
The
"People in
In 2002, the attorney general's Office filed a lawsuit against
"
Texas Insurance Commissioner
But consumer groups criticized the agreement, saying it fails to hold Farmers accountable.
"This deal lets Farmers pocket millions in overcharges without paying interest on its wrongfully collected premiums the company has held since 2002," said
The settlement will impact an estimated 1.8 million current and former Farmers Insurance customers, according to court documents.
The plan, however, still has another hurdle ahead before it can move forward.
A preliminary approval means policyholders will now receive notices on the proposed settlement.
A final settlement hearing slated for
It's at that hearing that anyone who has intervened in the case previously, or any affected policyholder, can object to the plan. The judge in the case will then make a final ruling on the plan.
Court documents say that three intervenors in the case have already objected to the settlement and "have indicated they will raise objections" during the
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