AUSTIN, Texas (AP) – More than 1 million State Farm policyholders in Texas will be eligible for refunds as part of a $352-plus million settlement the company reached with the state over excessive premium charges.
State Farm admits no wrongdoing as part of the settlement, but says most homeowners who had policies between Sept. 7, 2003, and the end of July 2008 will be eligible for refunds. Checks will begin going out this fall.
The value of the refunds will vary since they’ll be calculated based on a percentage of the premiums paid, and on how many of the years in question those affected were policyholders.
The settlement wraps up legal wrangling that began in 2003 after the Texas Department of Insurance notified State Farm that its rates were not reasonable.