Policyholders unhappy with the settlement worked out between Farmers Insurance Group and the state of Texas filed lawsuits seeking to block the $100 million settlement that was reached on Nov. 30.
According to the Associated Press and the Dallas Morning News, lawyers for the plaintiffs filed the lawsuits shortly before a scheduled hearing on the settlement. State District Judge Scott Jenkins was to initially approve or reject the agreement, but the hearing was postponed and was not immediately rescheduled.
The deal has been criticized by consumer groups who characterize is as being biased in favor of the company. The plaintiffs’ lawyers told the Austin American-Statesman that the settlement could restrict the legal options available to Farmers’ clients and could potentially force the state to defend the company against lawsuits.
Insurance Commissioner Jose Montemayor said he was not surprised by the lawsuits, adding that they are typical in the case of big settlements. The Farmers settlement is the largest ever worked out between the state and a property/casualty insurer.
Topics Lawsuits Agribusiness
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: Deepfake Fraud Is On the Rise. Here’s How Insurers Can Respond 
Allstate Reports Second Quarter Pretax Catastrophe Losses of $2.1B 
Deere Retreats From Diversity Measures After Online Attacks 
Travelers Reverses Q2 Income Loss, Narrows Underwriting Loss 
