Farmers to Extend Renewals 30 Days; Rate Cut Part of Temporary Settlement

As a result of ongoing discussions with the Governor’s office, the Texas Department of Insurance (TDI) and the Office of Attorney General (OAG), the Farmers Insurance Group of Companies announced that it would continue to offer renewals to existing Texas homeowners customers through Dec. 10, 2002. The company has also agreed to a rate cut for policies effective beginning Nov. 11.

“Farmers, the Governor’s office, the TDI and the OAG are committed to reaching a resolution that will keep Farmers in the Texas homeowners market,” said John Hageman, Farmers’ vice president and Texas executive director. “This 30-day extension of the cease and desist order allows us to continue to offer insurance to our customers while we work out our differences.”

“Because of the improvement in loss trends, Farmers also announced that for policies effective November 11, its homeowners rates in Texas would drop by an average of 6.8 percent throughout the state,” Hageman said. “We have not had a rate adjustment for nearly a year. As is normal with changes in market conditions, rates are constantly being adjusted up, or down, depending on changing loss experience. We are pleased to pass along this improvement in our experience to our customers.”

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. Farmers homeowners customers who are renewing between now and December 10 are urged to immediately contact their local Farmers agent.

“Going forward, we are committed to working together with Governor Perry, the TDI and the OAG to permanently resolve this matter and to achieve the best solutions in the interests of Texas insurance consumers. We know that all parties have this same goal. We regret the inconvenience we know this has caused many of our homeowners customers,” said Hageman, who stressed that Farmers agents continue to offer auto, commercial, life and other lines of insurance and financial services to Texas customers.

Topics Texas Agribusiness Homeowners