In response to the lawsuit filed Aug. 5 by the Texas Attorney General against Farmers Insurance Group of Companies, the company has reviewed the allegations and says they are without merit. The lawsuit was filed by Attorney General John Cornyn, charging Farmers with alleged deceptive, misleading and discriminatory homeowners-insurance practice that violate the Texas Insurance Code and the Deceptive Trade Practices Act.
“This looks and feels like political harassment,” John Hageman, State Executive Officer of Farmers’ Texas operations, said. “Given the political season, we should not be surprised to find ourselves being used as a political football. It is still shocking, however, because we have stayed in close communication with the Commissioner of Insurance in an effort to stay in the Texas homeowners insurance market.
“Farmers is the only major carrier that is still broadly open to the customers of Texas. We have done so at tremendous losses to our company. For instance, our losses in the homeowners market through May of this year are $390 million. Last year, we lost approximately half a billion dollars in this market. For every dollar we receive in insurance premiums, we currently pay out more than $2.57 in losses and expenses. Nationwide, less than 20 percent of our premiums come from Texas, yet more than 40 percent of our losses come from this state.”
Despite the action taken by the Attorney General, Farmers said it will attempt to stay in this market because it believes in Texas.
Topics Lawsuits Texas Agribusiness
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