On the heels of a recent multi-million dollar refund agreement with the state’s largest homeowners insurer, Texas Department of Insurance Commissioner David Mattax announced a revised settlement with the second largest homeowners insurer, Farmers Insurance, stemming from a 2002 lawsuit by the state against Farmers.
The settlement now goes before a Travis County District Court for approval.
The settlement, which amends a prior agreement, will enhance benefits to Farmers policyholders who fall within the settlement class.
As part of the settlement in 2002, Farmers provided a 6.8 percent homeowners rate reduction that has already been received by its policyholders. An additional $74.38 million in refunds has been increased by $10 million to account for the passage of time.
Under the terms of the agreement, eligible Farmers policyholders will receive a total of $84.38 million in refunds.
“This is a significant step toward returning funds to deserving Farmers customers,” said Commissioner Mattax in a departmental release.
He also noted the recent settlement with State Farm Lloyds totaling $352.5 million in refunds. Taken together, the two settlements provide for almost $437 million in refunds to certain Texas insurance consumers.