Judge Upholds $350 Million State Farm Refund Ruling

NORTH TEXAS (CBSDFW.COM) – A major home insurance policyholder could be forced to pay millions. A state judge has upheld an order by the state insurance commissioner that State Farm Insurance refund customers $350 million for excessive premiums.

Kevin Davis with State Farm says the company will appeal the decision. “State Farm Lloyd’s rates are and always have been very competitive,” claims Davis. “Real world evidence of that of course are the customers who continue to choose State Farm by a wide margin over any other insurer.”

The dispute is over premiums charged for home insurance between 2003 and 2008.

State Farm is accused of overcharging customers, even after warnings from state regulators that their rates were too high.

“State Farm’s number one priority is having the financial stability to be able to keep our promises to our customers,” said Davis. “We believe State Farm Lloyd’s rates are and always have been fair and competitive.”

State Farm is the state’s largest writer of homeowners insurance.


One Comment

  1. chuckz says:

    State Farm has been stalling long enough. Pay up and drop your rates.
    To State Farm rep Kevin Davis, I know you have mortgage loans, but that is not the dispute. The problem is excessive insurance rates.

  2. Rick Garcia says:

    A they have to do to make the share holders happy is raise the rates to cover the loss and then some.

  3. Fred Van Liew says:

    State Farm has been terrific every time we have had a challenge, whether home or automobile. I wouldn’t and haven’t even considered changing insurer. Since we have a choice, State Commissioner is just raising our premiums or lowering our coverage under the guise of “justice.” We agreed to pay what we paid. This has allowed the company to be excellent and responsive to our needs. A big “BOO!” on the government on this fiasco.

  4. M Davis says:

    State Farm is a mutual company – has no shareholders, Mr. Garcia.

    When State Farm issues dividend checks, they come in the form of REFUNDS to CUSTOMERS. Every State Farm customer in Texas should want to see claims experience to decline to help keep rates low.

    But when a hail storm hits, like it did overnight last night, you can bet your last premium dollar that State Farm is working their tails off today to handle customer claims…. not phoning some Wall St. Banker in New York to see if they can borrow more money to pay their customers that are waiting for a check to get their home back in order….

  5. G. Whaley says:

    State Farm only has its own members’ best interest at heart? Perhaps. What I can add is I waited almost a year for an authorization from them to spend 2100.00 to repair my car, after an accident with one of their insured deemed at fault.

  6. Nancy says:

    We had our premiums go up by $342 one year and again by $350 the next. After 25 years with State Farm, we went with another company and saved $600 per year. I will shop around again after we sell this home.

  7. Terry says:

    If State Farm is so competitive, why did I leave them to go to another company. My homeowners insurance went from 1100 dollars a year to almost 1500 dollars a year. I am now witha company that is almost 600 dollars a year lower. They are not competative they are money hungrey.

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