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.