Texas Orders Farmers To Restructure Rates
The Texas Department of Insurance ordered Farmers Insurance Group of Cos. to stop what the state labeled unfair pricing practices, a move the department says effectively freezes the company’s homeowner rates.
The order gave Los Angeles-based Farmers 90 days to enact a new pricing structure. The company could be fined $25,000 for every individual harmed if it doesn’t comply.
Farmers has denied any wrongdoing, and spokesman Bill Miller said Insurance Commissioner Jose Montemayor’s actions are a “mere image of the governor’s, whose motivation was strictly political.”
Black said the department is not talking about politics, but talking about protecting consumers.
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