Where is our 310 Million, State Farm? - DFWstangs Forums
 
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post #1 of 19 (permalink) Old 04-10-2010, 11:57 PM Thread Starter
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Question Where is our 310 Million, State Farm?

Because I haven't gotten a fucking check yet.

State Farm Owes $310M in Refunds, Texas Regulators Say
November 17, 2009


The Texas Department of Insurance has ordered State Farm Lloyd's (SFL) to refund a total of $310 million to policyholders after finding that the insurer had overcharged customers beginning in 2003.

It's a finding that the department had reached once before. State Farm was told in 2003 to cut its rates by 12 percent but the company sued the department and the case has been in limbo since then.

Texas Insurance Commissioner Mike Geeslin issued the current order on Nov. 16, the result of a re-hearing after the case was remanded to TDI by the Third Court of Appeals in 2008.

"I have issued an order that completes what the Legislature started in 2003," Geeslin said in a statement released by TDI. "As far as any commentary, anything more that I could say would be redundant to what is contained in these pages [of the order]. There is evidence, there is law, and between the two you come up with $310 million."

The refund amount ordered is significantly lower than the nearly $1 billion that the state's Office of Public Insurance Counsel had previously estimated the company owed to policyholders, according to Associated Press reports.

Geeslin, according to a summary of the order provided by TDI, "found SFL's rates were excessive and is ordering SFL to pay refunds amounting to 6.2 percent of premium for policyholders insured with SFL from September 2003 to August 2004."

SFL was also ordered to refund to policyholders an amount equal to 3.4 percent of premium for those insured by the company from September 2004 through July 2008, excluding new policies written from June 1, 2008, through July 31, 2008.

The amount paid to individual policyholders will vary. The total amount of the refund is approximately $257 million, and the interest owed is approximately $53 million, according to TDI.

The company can repay the amount to policyholders via renewal credits for existing policyholders, or by check. State Farm Lloyd's must begin "applying renewal credits, and pay refunds and interest with in 60 days" of the order date. However, the company also has the right to appeal, in which case the payments would be on hold until final resolution by the courts.

Kevin Davis, a spokesman for State Farm, said the company had not yet decided whether to appeal.

"We are deeply disappointed with this decision as we believe State Farm Lloyds rates are, and always have been, both fair and justified," Davis said. "With this decision, the Commissioner effectively created another Hurricane Ike for State Farm. The financial impact of this order is comparable to the financial strain caused by the third most destructive hurricane to ever make landfall in the U.S.

"This decision not only challenges State Farm financially, it creates an unstable environment for consumers and the insurance industry. It will impact Lloyds in a significant manner. We are examining the potential financial and business consequences."

Jerry Johns, president of Southwestern Insurance Information Service, an insurer trade group, believes the order sets a bad precedent. "This precedent tells the insurance industry that regulators in Texas are not interested in the financial strength of companies."


Johns commented that "insurers who are considering entering the market in Texas and offer choices for consumers will likely take a step back and reconsider that decision."


MEANWHILE:


AUSTIN, TX -- State Farm Insurance has filed a lawsuit against the Texas Department of Insurance after the state agency took the unprecedented move of publicizing on its Web site recent rate hikes by the company.

Texas' largest insurer filed suit Tuesday, seeking to protect from disclosure certain information that State Farm said could benefit its rivals in the insurance industry.

Department spokesman Jerry Hagins says the agency's position is that all documents associated with a rate filing are public information.

Posted were two State Farm rate proposals filed over the last eight months that increase homeowner premiums an average of 13 percent.

Hagins tells The Dallas Morning News that the decision to post was partly the result of increases filed so close together.

(Copyright ©2010 by The Associated Press. All Rights Reserved.)

Boohoo, motherfuckers.
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post #2 of 19 (permalink) Old 04-11-2010, 02:04 AM
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Bastards raised my rates for no reason on my last premium. I took a defense driving course which reduced it by the amount they increased it. I'm dropping them if they try to raise it again on my next policy renewal. Been with them since I began driving.
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post #3 of 19 (permalink) Old 04-11-2010, 02:34 AM
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That's an interesting point, does this apply to auto insurance or just home owner's? My parents-in-law have statefarm, might have to let them know.

P.S. USAA > *
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post #4 of 19 (permalink) Old 04-11-2010, 05:13 PM
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I've been with state farm for about 30 years. Within that time i've filed a few claims, and they have always been handled promptly, with no crap whatsoever (unlike, say, allstate).

While their rates might be higher than you can get elsewhere, their service is also top notch, and IMO worth the extra premium. As long as they don't start playing games with me, i'll stay with them.
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post #5 of 19 (permalink) Old 04-11-2010, 05:16 PM Thread Starter
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Quote:
Originally Posted by mikeb View Post
I've been with state farm for about 30 years. Within that time i've filed a few claims, and they have always been handled promptly, with no crap whatsoever (unlike, say, allstate).

While their rates might be higher than you can get elsewhere, their service is also top notch, and IMO worth the extra premium. As long as they don't start playing games with me, i'll stay with them.


I agree, I've only had 1 claim in 10 years but they treated me right(and paid out somewhere around 70 grand). The thing that bothers me is that they keep refusing to pay this, then turn around and sue the state over some BS.
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post #6 of 19 (permalink) Old 04-11-2010, 07:00 PM
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I have Texas Farm Bureau and love them. check into them.
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post #7 of 19 (permalink) Old 04-11-2010, 09:46 PM
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I had state farm for about 3 years while they were over charging folks. I have since left them but I'll be looking for a check if they ever send them out.

TRAIN TRASH it's like WHITE TRASH but with money.

My other vehicle is a Locomotive.

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post #8 of 19 (permalink) Old 05-11-2010, 04:25 PM
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Woo-Hoo! Got a 400 dollar check from State Farm today!
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post #9 of 19 (permalink) Old 05-20-2010, 01:10 AM
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We've had state farm since i can remember.. I better get a big fucking check!

I'm gonna call my agent in the AM and ask whats up.
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post #10 of 19 (permalink) Old 05-20-2010, 08:19 AM
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shit, i dropped them in '08 after another rate hike- now I want my damn money back.

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post #11 of 19 (permalink) Old 05-20-2010, 08:22 AM
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Hmmm I have had them since 01, wonder what I will get.
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post #12 of 19 (permalink) Old 05-20-2010, 08:24 AM
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I was with them during that September 2003 to August 2004 and even a bit past that too. Is there a way you can find out if you're getting a check? I've moved and haven't been with them for years, I wouldn't even know where to start.

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post #13 of 19 (permalink) Old 05-20-2010, 09:57 AM
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Quote:
Originally Posted by exlude View Post
That's an interesting point, does this apply to auto insurance or just home owner's? My parents-in-law have statefarm, might have to let them know.

P.S. USAA > *
Yep, I never have to wonder where my refund is with USAA and it doesn't have to be ordered by a regulation committee. If they make money, I get a refund.

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post #14 of 19 (permalink) Old 05-20-2010, 11:32 AM
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I never realised dfwstangs.net was owned by State Farm and that this was the best place to contact them.
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post #15 of 19 (permalink) Old 05-20-2010, 11:37 AM
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It looks like it's SF's Home Owners Insurance that was affected by this.
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post #16 of 19 (permalink) Old 05-20-2010, 05:18 PM
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Are you guys saying you're receiving checks now? I've had state farm since 2001, so I hope I get me something!
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post #17 of 19 (permalink) Old 05-21-2010, 06:03 AM
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yep I've had SF homeowners since 2001. I got my check 2 weeks ago.
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post #18 of 19 (permalink) Old 05-21-2010, 05:35 PM
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yep I've had SF homeowners since 2001. I got my check 2 weeks ago.
You mind saying how much it was for. I canceled them a year ago but I was with them for a few years and expect some kind of check.

TRAIN TRASH it's like WHITE TRASH but with money.

My other vehicle is a Locomotive.

Don't cupple up without protection.
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post #19 of 19 (permalink) Old 05-22-2010, 07:13 AM
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You mind saying how much it was for. I canceled them a year ago but I was with them for a few years and expect some kind of check.

396 dollars and zero cents.
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