TEMP. DEAL FOR FARMERS, STATE

Farmers Insurance Group of Companies worked out a temporary deal with the Governor’s office, the Texas Department of Insurance (TDI) and the Office of Attorney General (OAG) under which it will continue to offer renewals to existing Texas homeowners customers through Dec. 10, 2002. An average rate cut of 6.8 percent for policies effective Nov. 11 is also part of the agreement. Farmers vice president John Hageman said an improvement in loss trends is allowing the rate decrease for certain policies. Farmers said its first priority is to quickly get word to its homeowners customers; its agents are expected to play a key role in this process. The company also asserted that it is committed to working with state officials to “permanently resolve this matter and to achieve the best solutions in the interests of Texas insurance consumers.”

Topics Texas Agribusiness