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Thu November 26, 2009
State Farm Appeals Ruling
By KRWG News
Texas – State Farm Lloyds has filed an appeal to an order to pay home insurance policyholders $310 million in refunds and interest for alleged overcharges going back as far as 2003.
Spokesman Kevin Davis says Texas' largest home insurer filed a motion Wednesday for a rehearing with the Texas Department of Insurance.
Davis says the company also plans to file an appeal in Travis County district court Monday.
Texas Insurance Commissioner Mike Geeslin issued the repayment order last week saying it completes reforms started six years ago by Texas lawmakers.
The order stems from a 6-year-old case in which regulators ordered the company to cut its rates 12 percent.
The appeal will halt repayments until the courts resolve the case.
Information from: Houston Chronicle, http://www.houstonchronicle.com
Copyright 2009 The Associated Press.