Farmers Insurance Lawsuit Settlement Set At $84.4M

A 2002 lawsuit filed by the State of Texas has finally been resolved with a Farmers Insurance lawsuit settlement totaling $84.4 million. State attorneys filed the lawsuit on behalf of Farmers policy holders. The Farmers Insurance lawsuit settlement stems from charges that the insurer forced policy holders to pay higher premiums while providing reduced coverage. The suit also alleged that the company violated the state’s Deceptive Practices Act by using discriminatory pricing methods.

Details of the Farmers Insurance Lawsuit Settlement

The Farmers Insurance lawsuit settlement comes after more than a dozen years of negotiations between state attorneys and lawyers for the troubled insurance carrier. The suit alleged that the insurer renewed policies with lower coverage limits, but maintained or increased their premium rates. The company allegedly took these actions to protect its bottom line after a widespread mold epidemic struck the Texas housing market in the early 2000s. Under the terms of the Farmers Insurance lawsuit settlement, the company does not admit that it engaged in any deceptive or illegal practices.

Who Can Participate in the Farmers Insurance Lawsuit Settlement

Funds from the Farmers Insurance lawsuit settlement will be distributed to nearly 1.8 million policy holders. Many of these homeowners were targeted for higher premiums by the pricing scheme. Homeowners who held the company’s polices from late 2000 to late 2002 could be eligible to receive payments from the Farmers Insurance lawsuit settlement funds. Auto policy holders from 1999 to 2003 may also be eligible to participate in the settlement, as the company used erroneous credit reports when establishing its premium rate schedules.

Farmers Insurance Lawsuit Settlement Process

The Texas Attorney General’s Office announced that it would send out information to those eligible to participate in the Farmers Insurance lawsuit settlement within 60 days. Homeowners who held the insurer’s “HO-A” policies will be eligible to receive payments for rate reductions. Customers who were supposed to receive discounts on their premiums are also eligible to receive compensation through the Farmers Insurance lawsuit settlement program. Policy holders who were affected by errors on their credit reports can receive free access to those reports and $35 for completing the Claim Form process.

Reaction to the Farmers Insurance Lawsuit Settlement

The reaction from state attorneys and regulators to the Farmers Insurance lawsuit settlement has been a mixture of joy and relief. Texas Insurance Commissioner David Mattax told reporters that he was “pleased with the court’s decision.” He called the combination of refunds and rate reductions required in the Farmers Insurance lawsuit settlement “excellent news for consumers.”

Source: Texas Attorney General’s Office

Get Answers For Your Farmers Insurance Lawsuit Settlement Questions

To find out how we can answer your questions about the Farmers Insurance lawsuit settlement, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your Farmers Insurance lawsuit settlement. You can also fill out the “Free Case Evaluation” form at the top of this page.