Posted on 12 Apr 2011
A Texas judge has upheld an order by the Insurance Commissioner Mike Geeslin 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,” claimsDavis. “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 District Judge Tim Sulak said he found “substantial evidence” to support Geeslin’s ruling, which required the insurers to issue refunds or credits when people renewed policies. Some refunds could amount to $200 to $300 per customer.
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.”